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SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 September 30, 2005 1-6747
 The Gorman-Rupp Company
 
  Ohio
    
    34-0253990(State or other jurisdiction of
incorporation or organization)
    
    (I.R.S. Employer
Identification No.)
 305 Bowman Street, Mansfield, Ohio
    
    44903(Address of principal executive offices)
    
    (Zip Code)
 (419) 755-1011
 þ o
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The Gorman-Rupp Company and Subsidiaries
Three and Nine Months Ended September 30, 2005 and 2004
  
 PART I. FINANCIAL INFORMATIONItem 1. Financial Statements (Unaudited)Condensed Consolidated Statements of Income
-Three months ended September 30, 2005 and 2004
-Nine months ended September 30, 2005 and 2004Condensed Consolidated Balance Sheets
-September 30, 2005 and December 31, 2004Condensed Consolidated Statements of Cash Flows
-Nine months ended September 30, 2005 and 2004Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 3. Quantitative and Qualitative Disclosures about Market RiskItem 4. Controls and ProceduresPART II. OTHER INFORMATIONItem 6. ExhibitsEX-3 Articles of Incorporation and by-lawsEX-4 Instruments defining the rights of security holders, including indenturesEX-10 Material ContractsEX-31.1 302 CEO CertificationEX-31.2 302 CFO CertificationEX-32 Section 1350 CEO and CFO CertificationsEX-31.1 CEO CertificationEX-31.2 CFO CertificationEX-32 Certification Section 1350, Section 906
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PART I. FINANCIAL INFORMATION
 
 ITEM 1FINANCIAL STATEMENTS (UNAUDITED)
 
 THE GORMAN-RUPP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
 (Thousands of dollars, except per share amounts)
    
    Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2005
    
    
    2004
    
    
    2005
    
    
    2004Net sales
    
    $
    58,980
    
    
    $
    52,392
    
    
    $
    167,126
    
    
    $
    152,627Cost of products sold
    
    
    47,610
    
    
    
    41,532
    
    
    
    133,565
    
    
    
    120,851Gross Profit
    
    
    11,370
    
    
    
    10,860
    
    
    
    33,561
    
    
    
    31,776Selling, general and
administrative expenses
    
    
    7,127
    
    
    
    7,587
    
    
    
    21,832
    
    
    
    21,553Operating Income
    
    
    4,243
    
    
    
    3,273
    
    
    
    11,729
    
    
    
    10,223Other income
    
    
    192
    
    
    
    6
    
    
    
    682
    
    
    
    491Other expense
    
    
    (189
    )
    
    
    (16
    )
    
    
    (243
    )
    
    
    (60
    )Income Before Income Taxes
    
    
    4,246
    
    
    
    3,263
    
    
    
    12,168
    
    
    
    10,654Income taxes
    
    
    1,571
    
    
    
    1,207
    
    
    
    4,502
    
    
    
    3,942Net Income
    
    $
    2,675
    
    
    $
    2,056
    
    
    $
    7,666
    
    
    $
    6,712Basic and Diluted
Earnings Per Share
    
    $
    0.25
    
    
    $
    0.19
    
    
    $
    0.72
    
    
    $
    0.63Dividends Paid Per Share
    
    $
    0.140
    
    
    $
    0.140
    
    
    $
    0.420
    
    
    $
    0.412Average Shares Outstanding
    
    
    10,685,697
    
    
    
    10,682,697
    
    
    
    10,683,708
    
    
    
    10,680,206
 Shares outstanding and per share data reflect the 5 for 4 stock split effective September 10, 2004.
 See notes to condensed consolidated financial statements.
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THE GORMAN-RUPP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 (Thousands of dollars)September 30,
    
    
    December 31,2005
    
    
    2004AssetsCurrent Assets:Cash and cash equivalents
    
    $
    12,450
    
    
    $
    16,202Short-term investments
    
    
    3,697
    
    
    
    2,696Accounts receivable  net
    
    
    36,008
    
    
    
    32,988Inventories  net
    
    
    51,098
    
    
    
    38,234Other current assets and deferred income taxes
    
    
    6,885
    
    
    
    6,525Total Current Assets
    
    
    110,138
    
    
    
    96,645Property, plant and equipment
    
    
    136,018
    
    
    
    135,660less allowances for depreciation
    
    
    83,887
    
    
    
    80,848Property, Plant and Equipment  Net
    
    
    52,131
    
    
    
    54,812Other assets
    
    
    14,171
    
    
    
    13,887Total Assets
    
    $
    176,440
    
    
    $
    165,344Liabilities and Shareholders EquityCurrent Liabilities:Accounts payable
    
    $
    8,572
    
    
    $
    6,615Payrolls and related liabilities
    
    
    3,945
    
    
    
    3,412Accrued expenses
    
    
    11,736
    
    
    
    10,514Income taxes
    
    
    3,477
    
    
    
    571Total Current Liabilities
    
    
    27,730
    
    
    
    21,112Postretirement benefits
    
    
    23,283
    
    
    
    22,334Shareholders EquityCommon shares, without par value:Authorized - 14,000,000 shares;Outstanding - 10,685,697 shares in 2005 and
10,682,697 in 2004 (after deducting treasury
shares of 395,278 in 2005 and 398,278
in 2004) at stated capital amount
    
    
    5,095
    
    
    
    5,093Retained earnings
    
    
    120,502
    
    
    
    117,261Accumulated other comprehensive loss
    
    
    (170
    )
    
    
    (456
    )Total Shareholders Equity
    
    
    125,427
    
    
    
    121,898Total Liabilities and Shareholders Equity
    
    $
    176,440
    
    
    $
    165,344
 Shares outstanding reflect the 5 for 4 stock split effective September 10, 2004.
See notes to condensed consolidated financial statements.
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THE GORMAN-RUPP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 (Thousands of dollars)
    
    Nine Months EndedSeptember 30,2005
    
    
    2004Cash Flows From Operating Activities:Net income
    
    $
    7,666
    
    
    $
    6,712Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation and amortization
    
    
    5,105
    
    
    
    5,387Changes in operating assets and liabilities
    
    
    (7,633
    )
    
    
    1,475Net Cash Provided by Operating Activities
    
    
    5,138
    
    
    
    13,574Cash Flows From Investing Activities:Capital additions, net
    
    
    (2,204
    )
    
    
    (3,341
    )Change in short-term investments
    
    
    (1,002
    )
    
    
    (2,026
    )Payment for acquisition
    
    
    (1,331
    )
    
    
    Net Cash Used for Investing Activities
    
    
    (4,537
    )
    
    
    (5,367
    )Cash Flows From Financing Activities:Cash dividends
    
    
    (4,487
    )
    
    
    (4,411
    )Net Cash Used for Financing Activities
    
    
    (4,487
    )
    
    
    (4,411
    )Effect of exchange rate changes on cash
    
    
    134
    
    
    
    102Net (Decrease) Increase in Cash
and Cash Equivalents
    
    
    (3,752
    )
    
    
    3,898Cash and Cash Equivalents:Beginning of year
    
    
    16,202
    
    
    
    16,272September 30,
    
    $
    12,450
    
    
    $
    20,170
 See notes to condensed consolidated financial statements.
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PART ICONTINUED
 ITEM 1. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 NOTE A  BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
   RESTATEMENT
  NEW ACCOUNTING PRONOUNCEMENTS
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PART ICONTINUED
 ITEM 1. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)CONTINUED
  NOTE B  INVENTORIES
  (Thousands of dollars)
    
    September 30,
    
    
    December 31,2005
    
    
    2004Raw materials and in-process
    
    $
    27,638
    
    
    $
    20,348Finished parts
    
    
    20,495
    
    
    
    16,602Finished products
    
    
    2,965
    
    
    
    1,284$
    51,098
    
    
    $
    38,234
 NOTE C  PRODUCT WARRANTIES
  (Thousands of dollars)
    
    Nine Months EndedSeptember 30,2005
    
    
    2004Balance at beginning of year
    
    $
    829
    
    
    $
    599Warranty costs
    
    
    987
    
    
    
    1,708Settlements
    
    
    (965
    )
    
    
    (1,412
    )Balance at end of quarter
    
    $
    851
    
    
    $
    895
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PART ICONTINUED
 ITEM 1. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)CONTINUED
 NOTE D  SHAREHOLDERS EQUITY
  NOTE E  COMPREHENSIVE INCOME
  NOTE FPENSION AND OTHER POSTRETIREMENT BENEFITS
   Pension Benefits
    
    
    Postretirement Benefits(Thousands of dollars)
    
    Nine Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September, 302005
    
    
    2004
    
    
    2005
    
    
    2004Service cost
    
    $
    1,455
    
    
    $
    1,403
    
    
    $
    788
    
    
    $
    785Interest cost
    
    
    1,663
    
    
    
    1,607
    
    
    
    1,331
    
    
    
    1,294Expected return on plan assets
    
    
    (1,828
    )
    
    
    (1,678
    )
    
    
    
    
    
    
    Amortization of prior service cost
and unrecognized (gain)/loss
    
    
    507
    
    
    
    408
    
    
    
    
    
    
    
    (422
    )Recognized net actuarial (gain)/loss
    
    
    
    
    
    
    
    
    
    
    223
    
    
    
    17Benefit cost
    
    $
    1,797
    
    
    $
    1,740
    
    
    $
    2,342
    
    
    $
    1,674
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PART ICONTINUED
 ITEM 1. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)CONTINUED
  NOTE GACQUISITIONS
  
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   Third Quarter 2005 Compared to Third Quarter 2004
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PART ICONTINUED
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONSCONTINUED
      Nine Months 2005 Compared to Nine Months 2004
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PART ICONTINUED
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCONTINUED
   Liquidity and Sources of Capital
     
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES OF MARKET RISK
  
 ITEM 4. CONTROLS AND PROCEDURES
 Current Status of Material Weaknesses in Internal Control Over Financial Reporting
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PART ICONTINUED
 ITEM 4. CONTROLS AND PROCEDURES-CONTINUED
   Evaluation of Disclosure Controls and Procedures
 hanges in Internal Control Over Financial Reporting
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PART IIOTHER INFORMATION
 
 ITEM 6. EXHIBITS
 (a)
    
    Exhibits
     SIGNATURES
  The Gorman-Rupp Company
  By:
    /s/Judith L. SovineJudith L. SovineCorporate Treasurer By:
    /s/Robert E. KirkendallRobert E. KirkendallSenior Vice President and
Chief Financial Officer 13