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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
 For the quarterly period ended March 31, 2006
 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
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
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The Gorman-Rupp Company and Subsidiaries
Three Months Ended March 31, 2006 and 2005
 PART I. FINANCIAL INFORMATIONItem 1. Financial Statements (Unaudited)Condensed
Consolidated Statements of Income  Three months ended March 31, 2006 and 2005Condensed
Consolidated Balance Sheets  March 31, 2006 and December 31, 2005Condensed
Consolidated Statements of Cash Flows  Three months ended March 31, 2006 and 2005Item 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-31.1 Certification of CEOEX-31.2 Certification of CFOEX-32 Certification Pursuant to Rule 906
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##### Table of Contents



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)
    
    2006
    
    
    2005Net sales
    
    $
    67,087
    
    
    $
    52,037Cost of products sold
    
    
    52,137
    
    
    
    42,252Gross Profit
    
    
    14,950
    
    
    
    9,785Selling, general and
administrative expenses
    
    
    8,106
    
    
    
    7,431Operating Income
    
    
    6,844
    
    
    
    2,354Other income
    
    
    212
    
    
    
    317Other expense
    
    
    (8
    )
    
    
    (47
    )Income Before Income Taxes
    
    
    7,048
    
    
    
    2,624Income taxes
    
    
    2,510
    
    
    
    970Net Income
    
    $
    4,538
    
    
    $
    1,654Basic and DilutedEarnings Per Share
    
    $
    0.42
    
    
    $
    0.15Dividends Paid Per Share
    
    $
    0.140
    
    
    $
    0.140Average Shares Outstanding
    
    
    10,685,697
    
    
    
    10,682,697
 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)
    
    2006
    
    
    2005AssetsCurrent Assets:Cash and cash equivalents
    
    $
    6,333
    
    
    $
    6,755Short-term investments
    
    
    5,382
    
    
    
    4,785Accounts receivable  net
    
    
    47,967
    
    
    
    41,473Inventories  net
    
    
    54,192
    
    
    
    52,403Other current assets and deferred income taxes
    
    
    4,594
    
    
    
    5,085Total Current Assets
    
    
    118,468
    
    
    
    110,501Property, plant and equipment
    
    
    137,386
    
    
    
    136,629Less allowances for depreciation
    
    
    86,696
    
    
    
    85,124Property, Plant and Equipment  Net
    
    
    50,690
    
    
    
    51,505Other assets
    
    
    17,615
    
    
    
    17,535Total Assets
    
    $
    186,773
    
    
    $
    179,541Liabilities and Shareholders EquityCurrent Liabilities:Accounts payable
    
    $
    11,326
    
    
    $
    9,835Payrolls and related liabilities
    
    
    3,778
    
    
    
    3,781Accrued expenses
    
    
    14,551
    
    
    
    13,782Income taxes
    
    
    2,784
    
    
    
    821Total Current Liabilities
    
    
    32,439
    
    
    
    28,219Postretirement Benefits
    
    
    23,549
    
    
    
    23,255Deferred Income Taxes
    
    
    1,019
    
    
    
    1,019Shareholders EquityCommon shares, without par value:Authorized
 14,000,000 shares;Outstanding
 10,685,697 shares in 2006 and
2005 (after deducting treasury
shares of 395,278 in 2006 and 2005)
at stated capital amount
    
    
    5,095
    
    
    
    5,095Retained earnings
    
    
    125,285
    
    
    
    122,243Accumulated other comprehensive loss
    
    
    (614
    )
    
    
    (290
    )Total Shareholders Equity
    
    
    129,766
    
    
    
    127,048Total Liabilities and Shareholders Equity
    
    $
    186,773
    
    
    $
    179,541
 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)
    
    2006
    
    
    2005Cash Flows From Operating Activities:Net income
    
    $
    4,538
    
    
    $
    1,654Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation and amortization
    
    
    1,649
    
    
    
    1,737Changes in operating assets and liabilities
    
    
    (3,709
    )
    
    
    (1,850
    )Net Cash Provided by Operating Activities
    
    
    2,478
    
    
    
    1,541Cash Flows From Investing Activities:Capital additions, net
    
    
    (781
    )
    
    
    134Change in short-term investments
    
    
    (597
    )
    
    
    24Payment for acquisition
    
    
    
    
    
    
    (1,331
    )Net Cash Used for Investing Activities
    
    
    (1,378
    )
    
    
    (1,173
    )Cash Flows From Financing Activities:Cash dividends
    
    
    (1,496
    )
    
    
    (1,495
    )Net Cash Used for Financing Activities
    
    
    (1,496
    )
    
    
    (1,495
    )Effect of exchange rate changes on cash
    
    
    (26
    )
    
    
    (35
    )Net (Decrease) Increase in Cash
and Cash Equivalents
    
    
    (422
    )
    
    
    (1,162
    )Cash and Cash Equivalents:Beginning of year
    
    
    6,755
    
    
    
    16,202March 31,
    
    $
    6,333
    
    
    $
    15,040
 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
  NEW ACCOUNTING PRONOUNCEMENTS
  NOTE B
 INVENTORIES
   March 31,
    
    
    December 31,(Thousands of dollars)
    
    2006
    
    
    2005Raw materials and in-process
    
    $
    29,156
    
    
    $
    29,187Finished parts
    
    
    22,630
    
    
    
    21,883Finished products
    
    
    2,406
    
    
    
    1,333$
    54,192
    
    
    $
    52,403
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PART ICONTINUED
 ITEM 1.
    
    NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)CONTINUED
 NOTE C
 PRODUCT WARRANTIES
  Three Months EndedMarch 31,(Thousands of dollars)
    
    2006
    
    
    2005Balance at beginning of year
    
    $
    1,277
    
    
    $
    829Warranty costs
    
    
    457
    
    
    
    269Settlements
    
    
    (470
    )
    
    
    (297
    )Balance at end of quarter
    
    $
    1,264
    
    
    $
    801
 NOTE D
 COMPREHENSIVE INCOME
  NOTE EPENSION AND OTHER POSTRETIREMENT BENEFITS
   Pension Benefits
    
    Postretirement BenefitsThree Months Ended
    
    Three Months EndedMarch 31,
    
    March 31,(Thousands of dollars)
    
    2006
    
    2005
    
    2006
    
    2005Service cost
    
    $
    559
    
    
    $
    485
    
    
    $
    298
    
    
    $
    262Interest cost
    
    
    624
    
    
    
    554
    
    
    
    427
    
    
    
    444Expected return on plan assets
    
    
    (714
    )
    
    
    (609
    )
    
    
    
    
    
    
    
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PART ICONTINUED
 ITEM 1.
    
    NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)CONTINUED
 Amortization of prior service cost
and unrecognized (gain)/loss
    
    
    256
    
    
    
    169
    
    
    
    
    
    
    Recognized net actuarial (gain)/loss
    
    
    
    
    
    
    
    
    
    
    66
    
    
    
    74Benefit cost
    
    $
    725
    
    
    $
    599
    
    
    $
    791
    
    
    $
    780
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   First Quarter 2006 Compared to First Quarter 2005
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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
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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
  Changes in Internal Control Over Financial Reporting
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PART IIOTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 1A. RISK FACTORS
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ITEM 6. EXHIBITS
 (a)
    
    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, 2005.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, 2006By:
    
    /s/Judith L. SovineJudith L. SovineCorporate TreasurerBy:
    
    /s/Robert E. KirkendallRobert E. KirkendallSenior Vice President andChief Financial Officer
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