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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
 For the Quarterly Period Ended March 31, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Commission File Number 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
  o þ o
 o þ
 13,360,004
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The Gorman-Rupp Company and Subsidiaries
Three Months Ended March 31, 2007 and 2006
 PART I. FINANCIAL INFORMATIONItem 1. Financial Statements (Unaudited)Condensed Consolidated Statements of Income-Three months ended March 31, 2007 and 2006Condensed Consolidated Balance Sheets-March 31, 2007 and December 31, 2006Condensed Consolidated Statements of Cash Flows-Three months ended March 31, 2007 and 2006Item 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 1. Legal ProceedingsItem 1A. Risk FactorsItem 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-31.1EX-31.2EX-32
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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)
 Three Months EndedMarch 31,(Thousands of dollars, except per share amounts)
    
    2007
    
    
    2006Net sales
    
    $
    74,461
    
    
    $
    67,087Cost of products sold
    
    
    58,396
    
    
    
    52,137Gross Profit
    
    
    16,065
    
    
    
    14,950Selling, general and
administrative expenses
    
    
    8,440
    
    
    
    8,106Operating Income
    
    
    7,625
    
    
    
    6,844Other income
    
    
    429
    
    
    
    212Other expense
    
    
    (11
    )
    
    
    (8
    )Income Before Income Taxes
    
    
    8,043
    
    
    
    7,048Income taxes
    
    
    2,951
    
    
    
    2,510Net Income
    
    $
    5,092
    
    
    $
    4,538Basic and Diluted Earnings Per Share
    
    $
    0.38
    
    
    $
    0.34Dividends Paid Per Share
    
    $
    0.120
    
    
    $
    0.112Average Shares Outstanding
    
    
    13,360,004
    
    
    
    13,356,254
 See notes to condensed consolidated financial statements.
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THE GORMAN-RUPP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 March 31,
    
    
    December 31,(Thousands of dollars)
    
    2007
    
    
    2006AssetsCurrent Assets:Cash and cash equivalents
    
    $
    19,883
    
    
    $
    12,654Short-term investments
    
    
    4,242
    
    
    
    4,201Accounts receivable  net
    
    
    44,912
    
    
    
    45,135Inventories  net
    
    
    48,911
    
    
    
    50,299Deferred income taxes and other current assets
    
    
    4,401
    
    
    
    7,829Total Current Assets
    
    
    122,349
    
    
    
    120,118Property, plant and equipment
    
    
    143,466
    
    
    
    141,901Less allowances for depreciation
    
    
    91,161
    
    
    
    89,550Property, Plant and Equipment  Net
    
    
    52,305
    
    
    
    52,351Deferred income taxes and other assets
    
    
    16,020
    
    
    
    15,071Total Assets
    
    $
    190,674
    
    
    $
    187,540Liabilities and Shareholders EquityCurrent Liabilities:Accounts payable
    
    $
    10,193
    
    
    $
    10,417Payrolls and related liabilities
    
    
    4,009
    
    
    
    3,557Accrued expenses
    
    
    13,015
    
    
    
    13,672Total Current Liabilities
    
    
    27,217
    
    
    
    27,646Income Tax Payable
    
    
    1,211
    
    
    
    Retirement Benefits
    
    
    3,005
    
    
    
    4,185Postretirement Benefits
    
    
    27,809
    
    
    
    27,567Shareholders EquityCommon shares, without par value:Authorized - 14,000,000 shares;Outstanding - 13,360,004 shares in 2007 and
2006 (after deducting treasury
shares of 490,347 in 2007 and 2006)
at stated capital amount
    
    
    5,097
    
    
    
    5,097Retained earnings
    
    
    138,504
    
    
    
    135,268Accumulated other comprehensive loss
    
    
    (12,169
    )
    
    
    (12,223
    )Total Shareholders Equity
    
    
    131,432
    
    
    
    128,142Total Liabilities and Shareholders Equity
    
    $
    190,674
    
    
    $
    187,540
 See notes to condensed consolidated financial statements.
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THE GORMAN-RUPP COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
 Three Months EndedMarch 31,(Thousands of dollars)
    
    2007
    
    
    2006Cash Flows From Operating Activities:Net income
    
    $
    5,092
    
    
    $
    4,538Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation and amortization
    
    
    1,694
    
    
    
    1,649Changes in operating assets and liabilities
    
    
    3,600
    
    
    
    (3,709
    )Net Cash Provided by Operating Activities
    
    
    10,386
    
    
    
    2,478Cash Flows From Investing Activities:Capital additions, net
    
    
    (1,567
    )
    
    
    (781
    )Change in short-term investments
    
    
    (42
    )
    
    
    (597
    )Net Cash Used for Investing Activities
    
    
    (1,609
    )
    
    
    (1,378
    )Cash Flows From Financing Activities:Cash dividends
    
    
    (1,603
    )
    
    
    (1,496
    )Net Cash Used for Financing Activities
    
    
    (1,603
    )
    
    
    (1,496
    )Effect of exchange rate changes on cash
    
    
    55
    
    
    
    (26
    )Net Increase (Decrease) in Cash
and Cash Equivalents
    
    
    7,229
    
    
    
    (422
    )Cash and Cash Equivalents:Beginning of year
    
    
    12,654
    
    
    
    6,755March 31,
    
    $
    19,883
    
    
    $
    6,333
 See notes to condensed consolidated financial statements.
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PART I
 ITEM 1. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 NOTE A  BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
  NEW ACCOUNTING PRONOUNCEMENTS
  NOTE B  INVENTORIES
   March 31,
    
    December 31,(Thousands of dollars)
    
    2007
    
    2006Raw materials and in-process
    
    $
    23,068
    
    
    $
    22,423Finished parts
    
    
    22,808
    
    
    
    23,491Finished products
    
    
    3,035
    
    
    
    4,385Total inventories
    
    $
    48,911
    
    
    $
    50,299
 NOTE C  PRODUCT WARRANTIES
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PART I  CONTINUED
 ITEM 1. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS   (UNAUDITED)  CONTINUED
 Three Months Ended(Thousands of dollars)
    
    March 31,2007
    
    2006Balance at beginning of year
    
    $
    1,216
    
    
    $
    1,277Warranty costs
    
    
    388
    
    
    
    457Settlements
    
    
    (426
    )
    
    
    (470
    )Balance at end of quarter
    
    $
    1,178
    
    
    $
    1,264
 NOTE D  COMPREHENSIVE INCOME
  Three Months Ended(Thousands of dollars)
    
    March 31,2007
    
    2006Net income
    
    $
    5,092
    
    
    $
    4,538Changes in cumulative foreign currency
translation adjustments
    
    
    55
    
    
    
    (324
    )Changes in pension and OPEB adjustments
    
    
    (1
    )
    
    
    Comprehensive income
    
    $
    5,146
    
    
    $
    4,214
 NOTE E  INCOME TAXES
 Accounting for Uncertainty in Income
Taxes Accounting for Contingencies Accounting for Income Taxes
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PART I  CONTINUED
 ITEM 1. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)  CONTINUED
     NOTE F  PENSION AND OTHER POSTRETIREMENT BENEFITS
   Pension Benefits
    
    Postretirement BenefitsThree Months Ended
    
    Three Months Ended(Thousands of dollars)
    
    March 31,
    
    March 31,2007
    
    2006
    
    2007
    
    2006Service cost
    
    $
    581
    
    
    $
    559
    
    
    $
    313
    
    
    $
    298Interest cost
    
    
    669
    
    
    
    624
    
    
    
    402
    
    
    
    427Expected return on plan assets
    
    
    (855
    )
    
    
    (714
    )
    
    
    
    
    
    
    Amortization of loss
    
    
    234
    
    
    
    256
    
    
    
    
    
    
    
    66Benefit cost
    
    $
    629
    
    
    $
    725
    
    
    $
    715
    
    
    $
    791
 NOTE G  SUBSEQUENT EVENT
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PART I  CONTINUED
 ITEM 1. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)  CONTINUED
   
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
   First Quarter 2007 Compared to First Quarter 2006
 Net Sales
 Three Months Ended(Thousands of Dollars)
    
    March 31,2007
    
    2006
    
    $ Change
    
    % ChangeNet Sales
    
    $
    74,461
    
    
    $
    67,087
    
    
    $
    7,374
    
    
    
    11.0
    %
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PART I  CONTINUED
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  CONTINUED
  Cost of Products Sold
 Three Months Ended(Thousands of Dollars)
    
    March 31,2007
    
    2006
    
    $ Change
    
    % ChangeCost of Products Sold
    
    $
    58,396
    
    
    $
    52,137
    
    
    $
    6,259
    
    
    
    12.0
    %% of Net Sales
    
    
    78.4
    %
    
    
    77.8
    %
    
    
    
    
    
    
    0.6
  Selling, General, and Administrative Expenses (SG&A)
 Three Months Ended(Thousands of Dollars)
    
    March 31,2007
    
    2006
    
    $ Change
    
    % ChangeSelling, General, and
Administrative Expenses
(SG&A)
    
    $
    8,440
    
    
    $
    8,106
    
    
    $
    334
    
    
    
    4.1
    %% of Net Sales
    
    
    11.3
    %
    
    
    12.1
    %
    
    
    
    
    
    
    (0.8
    )
  Other Income
 Three Months Ended(Thousands of Dollars)
    
    March 31,2007
    
    2006
    
    $ Change
    
    % ChangeOther Income
    
    $
    429
    
    
    $
    212
    
    
    $
    217
    
    
    
    102.4
    %% of Net Sales
    
    
    .6
    %
    
    
    .3
    %
    
    
    
    
    
    
    (0.3
    )
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PART I  CONTINUED
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  CONTINUED
 Net Income
 Three Months Ended(Thousands of Dollars)
    
    March 31,2007
    
    2006
    
    $ Change
    
    % ChangeIncome before income taxes
    
    $
    8,043
    
    
    $
    7,048
    
    
    $
    995
    
    
    
    14.1
    %% of Net Sales
    
    
    10.8
    %
    
    
    10.5
    %
    
    
    
    
    
    
    0.3Income taxes
    
    $
    2,951
    
    
    $
    2,510
    
    
    
    441
    
    
    
    17.6
    %Effective tax rate
    
    
    36.7
    %
    
    
    35.6
    %
    
    
    
    
    
    
    1.1Net income
    
    $
    5,092
    
    
    $
    4,538
    
    
    
    554
    
    
    
    12.2
    %% of Net Sales
    
    
    6.8
    %
    
    
    6.8
    %
    
    
    
    
    
    
    Earnings per share
    
    $
    0.38
    
    
    $
    0.34
    
    
    $
    0.04
    
    
    
    11.8
    %
   Liquidity and Sources of Capital
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PART I  CONTINUED
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  CONTINUED
   
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES OF MARKET RISK
  
 ITEM 4. CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
  hanges in Internal Control Over Financial Reporting
  
 PART II OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 1A. RISK FACTORS
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ITEM 6. EXHIBITS
  Exhibits 3, 4
    
    and 10 (articles of incorporation and by-laws;
instruments defining the rights of security holders, including indentures;
and material contracts) are incorporated herein by
this reference from Exhibits (3), (4) and (10) of the
Companys Annual Report on Form 10-K for the year ended
December 31, 2006.Exhibit 31.1
    
    Certification of Jeffrey S. Gorman, Chief Executive
Officer, pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002Exhibit 31.2
    
    Certification of Robert E. Kirkendall, Chief Financial
Officer, pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002Exhibit 32
    
    Certification pursuant to 18 U.S.C Section
1350, as adopted pursuant to Section 906 of
The Sarbanes-Oxley Act of 2002
 SIGNATURES
  The Gorman-Rupp Company(Registrant)Date: May 3, 2007By:
    
    /s/ Judith L. SovineJudith L. SovineCorporate TreasurerBy:
    
    /s/ Robert E. KirkendallRobert E. KirkendallSenior Vice President andChief Financial Officer
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