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SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 For the Quarter Ended March 31, 2011
 Commission File Number 1-34495
 Ladish Co., Inc.
 (Exact name of registrant as specified in its charter)
 Wisconsin
    
    31-1145953(State or other Jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)5481 South Packard Avenue, Cudahy, Wisconsin
    
    53110(Address of principal executive offices)
    
    (Zip Code)
 (414) 747-2611  (Registrants telephone number, including area code)
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
 o þ
  Class
    
    Outstanding at March 31, 2011Common Stock, $0.01 Par Value
    
    15,707,552




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TABLE OF CONTENTS  PART I  FINANCIAL INFORMATIONCondensed Consolidated Statements of OperationsCondensed Consolidated Balance SheetsCondensed Consolidated Statements of Cash FlowsNotes to Condensed Consolidated Financial StatementsMANAGEMENTS DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND CHANGES IN FINANCIAL POSITIONItem 3. Quantitative and Qualitative Disclosures about Market RiskItem 4. Controls and ProceduresPART II  OTHER INFORMATIONItem 5. Other InformationItem 6. ExhibitsSIGNATURESExhibit 31.1Exhibit 31.2Exhibit 32.1    Table of Contents  
 PART I  FINANCIAL INFORMATION
 
 Ladish Co., Inc.  Condensed Consolidated Statements of Operations
 For the Three MonthsEnded March 31,(unaudited)2011
    
    
    2010Net sales
    
    $
    114,120
    
    
    $
    98,948Cost of sales
    
    
    95,312
    
    
    
    85,285Gross profit
    
    
    18,808
    
    
    
    13,663Selling, general and administrative expenses
    
    
    4,605
    
    
    
    4,200Income from operations
    
    
    14,203
    
    
    
    9,463Other (income) expense:Interest expense
    
    
    1,343
    
    
    
    1,475Other, net
    
    
    (26
    )
    
    
    (250
    )Income before income tax provision
    
    
    12,886
    
    
    
    8,238Income tax provision
    
    
    3,425
    
    
    
    2,886Net income
    
    
    9,461
    
    
    
    5,352Noncontrolling interest in net earnings of subsidiary
    
    
    19
    
    
    
    4Net income attributable to Ladish Co., Inc.
    
    $
    9,442
    
    
    $
    5,348Basic earnings per share
    
    $
    0.60
    
    
    $
    0.34Diluted earnings per share
    
    $
    0.60
    
    
    $
    0.34Basic weighted average shares outstanding
    
    
    15,707,552
    
    
    
    15,858,560Diluted weighted average shares outstanding
    
    
    15,707,552
    
    
    
    15,859,650
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Ladish Co., Inc.  Condensed Consolidated Balance Sheets
 March 31,
    
    
    December 31,2011
    
    
    2010(unaudited)Assets:Current assets:Cash and cash equivalents
    
    $
    25,240
    
    
    $
    23,335Accounts receivable, less allowance for doubtful accounts of $200 at each date
    
    
    91,607
    
    
    
    82,364Inventories, net
    
    
    109,063
    
    
    
    100,693Deferred income taxes
    
    
    4,956
    
    
    
    4,843Prepaid expenses and other current assets
    
    
    2,567
    
    
    
    2,105Total current assets
    
    
    233,433
    
    
    
    213,340Property, plant and equipment:Land and improvements
    
    
    6,941
    
    
    
    6,906Buildings and improvements
    
    
    62,819
    
    
    
    62,153Machinery and equipment
    
    
    302,763
    
    
    
    297,969Construction in progress
    
    
    7,767
    
    
    
    8,920380,290
    
    
    
    375,948Less  accumulated depreciation
    
    
    (185,026
    )
    
    
    (180,295
    )Net property, plant and equipment
    
    
    195,264
    
    
    
    195,653Deferred income taxes
    
    
    15,298
    
    
    
    16,175Goodwill
    
    
    37,571
    
    
    
    37,571Other intangible assets, net
    
    
    18,965
    
    
    
    19,065Other assets
    
    
    4,155
    
    
    
    3,764Total assets
    
    $
    504,686
    
    
    $
    485,568Liabilities:Current liabilities:Accounts payable
    
    $
    34,460
    
    
    $
    27,317Senior notes
    
    
    15,714
    
    
    
    15,714Accrued liabilities:Pensions
    
    
    246
    
    
    
    202Postretirement benefits
    
    
    3,474
    
    
    
    3,818Officers deferred compensation
    
    
    328
    
    
    
    328Wages and salaries
    
    
    5,685
    
    
    
    4,342Taxes, other than income taxes
    
    
    1,064
    
    
    
    313Interest
    
    
    1,079
    
    
    
    1,323Profit sharing
    
    
    938
    
    
    
    3,567Paid progress billings
    
    
    630
    
    
    
    1,306Other
    
    
    6,515
    
    
    
    5,425Total current liabilities
    
    
    70,133
    
    
    
    63,655Noncurrent liabilities:Senior notes
    
    
    68,571
    
    
    
    68,571Pensions
    
    
    57,855
    
    
    
    57,231Postretirement benefits
    
    
    30,244
    
    
    
    29,899Officers deferred compensation
    
    
    10,225
    
    
    
    10,082Other noncurrent liabilities
    
    
    4,074
    
    
    
    3,653Total liabilities
    
    
    241,102
    
    
    
    233,091Commitments and contingencies
    
    
    
    
    
    
    Equity:Stockholders equity:Common stock  authorized 100,000,000, issued 15,907,552 shares at each date
    
    
    159
    
    
    
    159Additional paid-in capital
    
    
    153,361
    
    
    
    153,361Retained earnings
    
    
    180,196
    
    
    
    170,753Treasury stock, 200,000 shares of common stock at each date at cost
    
    
    (3,250
    )
    
    
    (3,250
    )Accumulated other comprehensive loss
    
    
    (67,457
    )
    
    
    (69,102
    )Total stockholders equity
    
    
    263,009
    
    
    
    251,921Noncontrolling interest in equity of subsidiary
    
    
    575
    
    
    
    556Total equity
    
    
    263,584
    
    
    
    252,477Total liabilities and equity
    
    $
    504,686
    
    
    $
    485,568
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Ladish Co., Inc.  Condensed Consolidated Statements of Cash Flows
 For the Three MonthsEnded March 31,(unaudited)2011
    
    
    2010CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    9,461
    
    
    $
    5,352Adjustments to reconcile net income to net cash
provided by (used in) operating activities:Depreciation
    
    
    4,392
    
    
    
    3,838Amortization of intangibles
    
    
    100
    
    
    
    100Non-cash deferred compensation
    
    
    152
    
    
    
    93Deferred income taxes
    
    
    788
    
    
    
    1,560Gain on disposal of property, plant and equipment
    
    
    (6
    )
    
    
    (22
    )Changes in assets and liabilities:Accounts receivable
    
    
    (8,904
    )
    
    
    (13,811
    )Inventories
    
    
    (8,162
    )
    
    
    6,043Other assets
    
    
    (847
    )
    
    
    1,888Accounts payable and accrued liabilities
    
    
    5,757
    
    
    
    4,676Other liabilities
    
    
    3,524
    
    
    
    1,144Net cash provided by operating activities
    
    
    6,255
    
    
    
    10,861CASH FLOWS FROM INVESTING ACTIVITIES:Additions to property, plant and equipment
    
    
    (2,852
    )
    
    
    (1,929
    )Proceeds from sale of property, plant and equipment
    
    
    10
    
    
    
    48Net cash used in investing activities
    
    
    (2,842
    )
    
    
    (1,881
    )CASH FLOWS FROM FINANCING ACTIVITIES:Increase (decrease) in outstanding checks
    
    
    (1,621
    )
    
    
    854Purchase of treasury stock
    
    
    
    
    
    
    (3,250
    )Net cash used in financing activities
    
    
    (1,621
    )
    
    
    (2,396
    )Effect of exchange rate changes on cash and cash equivalents
    
    
    113
    
    
    
    7INCREASE IN CASH AND CASH EQUIVALENTS
    
    
    1,905
    
    
    
    6,591CASH AND CASH EQUIVALENTS, beginning of period
    
    
    23,335
    
    
    
    19,917CASH AND CASH EQUIVALENTS, end of period
    
    $
    25,240
    
    
    $
    26,508
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Ladish Co., Inc.  Notes to Condensed Consolidated Financial Statements
 Basis of Presentation
     Inventories
 March 31,
    
    
    December 31,2011
    
    
    2010Raw materials
    
    $
    17,953
    
    
    $
    15,259Work-in-process and finished goods
    
    
    94,699
    
    
    
    87,801Less progress payments
    
    
    (3,589
    )
    
    
    (2,367
    )Total inventories
    
    $
    109,063
    
    
    $
    100,693
 Interest and Income Tax Payments
 For the Three MonthsEnded March 31,2011
    
    
    2010Interest paid
    
    $
    1,603
    
    
    $
    1,686Income taxes paid, net of refunds
    
    
    414
    
    
    
    204
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Cash and Cash Equivalents
  Revenue Recognition
  Income Taxes
  Pension and Postretirement Benefits
  OtherPension Benefits
    
    
    Postretirement Benefits2011
    
    
    2010
    
    
    2011
    
    
    2010Service cost
    
    $
    403
    
    
    $
    401
    
    
    $
    58
    
    
    $
    57Interest cost
    
    
    2,498
    
    
    
    2,731
    
    
    
    364
    
    
    
    413Expected return on plan assets
    
    
    (3,164
    )
    
    
    (3,059
    )
    
    
    
    
    
    
    Amortization of prior service cost
    
    
    101
    
    
    
    123
    
    
    
    3
    
    
    
    3Amortization of the net loss
    
    
    2,380
    
    
    
    2,043
    
    
    
    45
    
    
    
    25Net periodic benefit cost
    
    $
    2,218
    
    
    $
    2,239
    
    
    $
    470
    
    
    $
    498
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Debt
       Page 7 of 14




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Earnings Per Share
  Stockholders Equity
   Legal Proceedings
     Page 8 of 14




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New Accounting Pronouncements
  (13)
    
    Subsequent Events
   Page 9 of 14




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MANAGEMENTS DISCUSSION
AND ANALYSIS OF RESULTS OF OPERATIONS AND
CHANGES IN FINANCIAL POSITION
 RESULTS OF OPERATIONS
 First Quarter 2011 Compared to First Quarter 2010
  Three Months Ended March 31,2011
    
    
    2010Jet Engine Components
    
    $
    63,201
    
    
    
    55
    %
    
    $
    47,880
    
    
    
    49
    %Aerospace Components
    
    
    29,584
    
    
    
    26
    %
    
    
    37,813
    
    
    
    38
    %General Industrial Components
    
    
    21,335
    
    
    
    19
    %
    
    
    13,255
    
    
    
    13
    %Total
    
    $
    114,120
    
    
    
    100
    %
    
    $
    98,948
    
    
    
    100
    %
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Liquidity and Capital Resources
        Page 11 of 14




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Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
   
    
    Market conditions and demand for the Companys products
    
    
    
    
    
    Competition
    
    Interest rates and capital costs
    
    
    
    
    
    Technologies
    
    Unstable governments and business conditions in emerging economies
    
    
    
    
    
    Raw material and energy prices
    
    Legal, regulatory and environmental issues
    
    
    
    
    
    Taxes
    
    Health care costs
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Item 4.
    
    Controls and Procedures
    Page 13 of 14




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PART II  OTHER INFORMATION
 
 Item 5.
    
    Other Information
  
 Item 6.
    
    Exhibits
    
 SIGNATURES
  LADISH CO., INC.By:
    /s/  Gary J. VromanGary J. VromanPresident & Chief Executive OfficerBy:
    /s/  Wayne E. LarsenWayne E. LarsenVice President Law/Finance
& Secretary   Page 14 of 14