##### Table of Contents



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 September 30, 2010
 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)
 Yes þ No o
 o o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
(Do not check if a smaller reporting company)
    
    Smaller reporting company o
 o þ
  Class
    
    Outstanding at September 30, 2010Common Stock, $0.01 Par Value
    
    15,704,552




---



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
  Page 2 of 14




---



##### Table of Contents



Ladish Co., Inc.
 
 Condensed Consolidated Statements of Operations
  For the Three Months
    
    
    For the Nine MonthsEnded September 30,
    
    
    Ended September 30,(unaudited)
    
    
    (unaudited)2010
    
    
    2009
    
    
    2010
    
    
    2009Net sales
    
    $
    100,280
    
    
    $
    76,191
    
    
    $
    298,635
    
    
    $
    266,616Cost of sales
    
    
    84,018
    
    
    
    71,469
    
    
    
    252,012
    
    
    
    248,233Gross profit
    
    
    16,262
    
    
    
    4,722
    
    
    
    46,623
    
    
    
    18,383Selling, general and administrative expenses
    
    
    4,529
    
    
    
    5,692
    
    
    
    12,761
    
    
    
    14,007Income (loss) from operations
    
    
    11,733
    
    
    
    (970
    )
    
    
    33,862
    
    
    
    4,376Other income (expense):Interest expense
    
    
    (1,363
    )
    
    
    (1,428
    )
    
    
    (4,257
    )
    
    
    (3,594
    )Other, net
    
    
    (300
    )
    
    
    (632
    )
    
    
    354
    
    
    
    (965
    )Income (loss) before income tax provision (benefit)
    
    
    10,070
    
    
    
    (3,030
    )
    
    
    29,959
    
    
    
    (183
    )Income tax provision (benefit)
    
    
    3,855
    
    
    
    (780
    )
    
    
    10,833
    
    
    
    228Net income (loss)
    
    
    6,215
    
    
    
    (2,250
    )
    
    
    19,126
    
    
    
    (411
    )Noncontrolling interest in net earnings (loss) of subsidiary
    
    
    (3
    )
    
    
    (41
    )
    
    
    22
    
    
    
    (52
    )Net income (loss) attributable to the controlling interest
    
    $
    6,218
    

    
    $
    (2,209
    )
    
    $
    19,104
    
    
    $
    (359
    )Basic earnings (loss) per share
    
    $
    0.40
    
    
    $
    (0.14
    )
    
    $
    1.21
    
    
    $
    (0.02
    )Diluted earnings (loss) per share
    
    $
    0.40
    
    
    $
    (0.14
    )
    
    $
    1.21
    
    
    $
    (0.02
    )Basic weighted average shares outstanding
    
    
    15,703,799
    
    
    
    15,901,877
    
    
    
    15,754,554
    
    
    
    15,901,439Diluted weighted average shares outstanding
    
    
    15,704,935
    
    
    
    15,901,877
    
    
    
    15,755,826
    
    
    
    15,901,439
   Page 3 of 14




---



##### Table of Contents



Ladish Co., Inc.
 
 Condensed Consolidated Balance Sheets
  September 30,
    
    
    December 31,2010
    
    
    2009(unaudited)Assets:Current assets:Cash and cash equivalents
    
    $
    26,774
    
    
    $
    19,917Accounts receivable, less allowance of $75 at each date
    
    
    77,322
    
    
    
    59,382Inventories
    
    
    100,852
    
    
    
    92,697Deferred income taxes
    
    
    5,134
    
    
    
    5,144Prepaid expenses and other current assets
    
    
    2,828
    
    
    
    6,118Total current assets
    
    
    212,910
    
    
    
    183,258Property, plant and equipment:Land and improvements
    
    
    6,920
    
    
    
    6,905Buildings and improvements
    
    
    61,447
    
    
    
    60,416Machinery and equipment
    
    
    252,689
    
    
    
    240,352Construction in progress
    
    
    53,245
    
    
    
    58,451374,301
    
    
    
    366,124Less  accumulated depreciation
    
    
    (178,876
    )
    
    
    (167,688
    )Net property, plant and equipment
    
    
    195,425
    
    
    
    198,436Deferred income taxes
    
    
    22,128
    
    
    
    26,522Goodwill
    
    
    37,571
    
    
    
    37,571Other intangible assets, net
    
    
    19,165
    
    
    
    19,465Other assets
    
    
    3,227
    
    
    
    4,262Total assets
    
    $
    490,426
    
    
    $
    469,514Liabilities:Current liabilities:Accounts payable
    
    $
    33,130
    
    
    $
    23,613Senior notes
    
    
    15,714
    
    
    
    5,714Accrued liabilities:Pensions
    
    
    249
    
    
    
    259Postretirement benefits
    
    
    3,464
    
    
    
    3,464Officers deferred compensation
    
    
    155
    
    
    
    155Wages and salaries
    
    
    5,328
    
    
    
    3,314Taxes, other than income taxes
    
    
    303
    
    
    
    289Interest
    
    
    1,047
    
    
    
    1,355Profit sharing
    
    
    2,456
    
    
    
    611Paid progress billings
    
    
    846
    
    
    
    2,428Income taxes
    
    
    1,279
    
    
    
    Other
    
    
    7,768
    
    
    
    4,541Total current liabilities
    
    
    71,739
    
    
    
    45,743Noncurrent liabilities:Senior notes
    
    
    68,571
    
    
    
    84,286Pensions
    
    
    66,382
    
    
    
    69,653Postretirement benefits
    
    
    29,411
    
    
    
    30,215Officers deferred compensation
    
    
    9,606
    
    
    
    9,276Other noncurrent liabilities
    
    
    3,086
    
    
    
    4,220Total liabilities
    
    
    248,795
    
    
    
    243,393Equity:Stockholders equity:Common stock  authorized 100,000,000, issued 15,907,552 shares at each
date of $.01 par value
    
    
    159
    
    
    
    159Additional paid-in capital
    
    
    153,308
    
    
    
    153,292Retained earnings
    
    
    164,482
    
    
    
    145,378Treasury stock, 203,000 and 4,548 shares of common stock at each date at cost
    
    
    (3,272
    )
    
    
    (33
    )Accumulated other comprehensive loss
    
    
    (73,595
    )
    
    
    (73,214
    )Total stockholders equity
    
    
    241,082
    
    
    
    225,582Noncontrolling interest in equity of subsidiary
    
    
    549
    
    
    
    539Total equity
    
    
    241,631
    
    
    
    226,121Total liabilities and equity
    
    $
    490,426
    
    
    $
    469,514
   Page 4 of 14




---



##### Table of Contents



Ladish Co., Inc.
 
 Condensed Consolidated Statements of Cash Flows
 For the Nine MonthsEnded September 30,(unaudited)2010
    
    
    2009CASH FLOWS FROM OPERATING ACTIVITIES:Net income (loss) attributable to the controlling interest
    
    $
    19,104
    
    
    $
    (359
    )Adjustments to reconcile net income to net cash
provided by (used in) operating activities:Depreciation
    
    
    11,650
    
    
    
    11,466Amortization of intangibles
    
    
    300
    
    
    
    409Non-cash deferred compensation
    
    
    145
    
    
    
    418Deferred income taxes
    
    
    4,292
    
    
    
    349Noncontrolling interest in net earnings (loss) of subsidiary
    
    
    22
    
    
    
    (52
    )Gain on purchase of stock  noncontrolling interest
    
    
    (6
    )
    
    
    (15
    )Loss on disposal of property, plant and equipment
    
    
    118
    
    
    
    284Changes in assets and liabilities:Accounts receivable
    
    
    (18,078
    )
    
    
    24,095Inventories
    
    
    (8,073
    )
    
    
    26,817Other assets
    
    
    4,382
    
    
    
    1,945Accounts payable and accrued liabilities
    
    
    14,656
    
    
    
    (18,558
    )Other liabilities
    
    
    (3,546
    )
    
    
    1,455Net cash provided by operating activities
    
    
    24,966
    
    
    
    48,254CASH FLOWS FROM INVESTING ACTIVITIES:Additions to property, plant and equipment
    
    
    (9,303
    )
    
    
    (10,946
    )Proceeds from sale of property, plant and equipment
    
    
    65
    
    
    
    62Proceeds from working capital adjustment on Aerex acquisition
    
    
    
    
    
    
    1,200Net cash used in investing activities
    
    
    (9,238
    )
    
    
    (9,684
    )CASH FLOWS FROM FINANCING ACTIVITIES:Repayment of Facility
    
    
    
    
    
    
    (28,900
    )Repayment of senior notes
    
    
    (5,715
    )
    
    
    Retirement of capital lease obligations
    
    
    
    
    
    
    (1,660
    )Purchase of ZKM stock  noncontrolling interest
    
    
    (6
    )
    
    
    (33
    )Purchase of treasury stock
    
    
    (3,250
    )
    
    
    Proceeds from exercise of stock options
    
    
    16
    
    
    
    15Net cash used in financing activities
    
    
    (8,955
    )
    
    
    (30,578
    )Effect of exchange rate changes on cash and cash equivalents
    
    
    84
    
    
    
    (179
    )INCREASE IN CASH AND CASH EQUIVALENTS
    
    
    6,857
    
    
    
    7,813CASH AND CASH EQUIVALENTS, beginning of period
    
    
    19,917
    
    
    
    4,903CASH AND CASH EQUIVALENTS, end of period
    
    $
    26,774
    
    
    $
    12,716
   Page 5 of 14




---



##### Table of Contents



Ladish Co., Inc.
 
 Notes to Condensed Consolidated Financial Statements
  Basis of Presentation
     Inventories
 September 30,
    
    
    December 31,2010
    
    
    2009Raw materials
    
    $
    16,273
    
    
    $
    18,038Work-in-process and finished goods
    
    
    87,669
    
    
    
    77,209Less progress payments
    
    
    (3,090
    )
    
    
    (2,550
    )Total inventories
    
    $
    100,852
    
    
    $
    92,697
 Interest and Income Tax Payments
 For the Nine MonthsEnded September 30,2010
    
    
    2009Interest paid
    
    $
    4,584
    
    
    $
    4,749Income taxes paid (refunded)
    
    
    3,641
    
    
    
    (2,650
    )
  Page 6 of 14




---



##### Table of Contents



Cash and Cash Equivalents
  Revenue Recognition
  Income Taxes
  Pension and Postretirement Benefits
  OtherPension Benefits
    
    
    Postretirement Benefits2010
    
    
    2009
    
    
    2010
    
    
    2009Service cost
    
    $
    1,204
    
    
    $
    1,010
    
    
    $
    172
    
    
    $
    143Interest cost
    
    
    8,194
    
    
    
    8,891
    
    
    
    1,236
    
    
    
    1,426Expected return on plan assets
    
    
    (9,178
    )
    
    
    (9,949
    )
    
    
    
    
    
    
    Amortization of prior service cost
    
    
    368
    
    
    
    293
    
    
    
    11
    
    
    
    11Amortization of the net loss
    
    
    6,128
    
    
    
    3,955
    
    
    
    76
    
    
    
    4Net periodic benefit cost
    
    $
    6,716
    
    
    $
    4,200
    
    
    $
    1,495
    
    
    $
    1,584
  Page 7 of 14




---



##### Table of Contents



Debt
       Page 8 of 14




---



##### Table of Contents



Earnings Per Share
  Stockholders Equity
   Legal Proceedings
   New Accounting Pronouncements
  Subsequent Events
   Page 9 of 14




---



##### Table of Contents



MANAGEMENTS DISCUSSION
AND ANALYSIS OF RESULTS OF OPERATIONS AND
CHANGES IN FINANCIAL POSITION
 RESULTS OF OPERATIONS
 Third Quarter 2010 Compared to Third Quarter 2009
  Three Months Ended September 30,2010
    
    
    2009Jet Engine Components
    
    $
    49,866
    
    
    
    50
    %
    
    $
    39,757
    
    
    
    52
    %Aerospace Components
    
    
    35,696
    
    
    
    36
    %
    
    
    28,365
    
    
    
    37
    %General Industrial Components
    
    
    14,718
    
    
    
    14
    %
    
    
    8,069
    
    
    
    11
    %Total
    
    $
    100,280
    
    
    
    100
    %
    
    $
    76,191
    
    
    
    100
    %
        Page 10 of 14




---



##### Table of Contents



First Nine Months 2010 Compared to First Nine Months 2009
  Nine Months Ended September 30,2010
    
    
    2009Jet Engine Components
    
    $
    147,529
    
    
    
    49
    %
    
    $
    144,549
    
    
    
    54
    %Aerospace Components
    
    
    109,430
    
    
    
    37
    %
    
    
    88,315
    
    
    
    33
    %General Industrial Components
    
    
    41,676
    
    
    
    14
    %
    
    
    33,752
    
    
    
    13
    %Total
    
    $
    298,635
    
    
    
    100
    %
    
    $
    266,616
    
    
    
    100
    %
        Page 11 of 14




---



##### Table of Contents



Liquidity and Capital Resources
         Page 12 of 14




---



##### Table of Contents



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
  
 Item 4. Controls and Procedures
    Page 13 of 14




---



##### Table of Contents



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