Financial Performance - Net sales for Q3 FY2020 were $25,286, a 47% increase compared to $17,198 in Q3 FY2019[82] - Net income for Q3 FY2020 was $9, down from $95 in Q3 FY2019, with diluted income per share remaining at $0[82] - Net income for the first nine months of fiscal 2020 was $1,296 million, a decrease of 69% compared to $4,245 million in the same period of fiscal 2019[103] - Revenue for fiscal 2020 is expected to be approximately $100,000 million to $105,000 million, excluding the commercial nuclear utility business sold in the first quarter of fiscal 2020[116] Orders and Backlog - Orders booked in Q3 FY2020 were $20,057, compared to $23,169 in Q3 FY2019, reflecting a decrease in commercial nuclear business orders[82] - Backlog at December 31, 2019, was $122,899, down from $127,765 at September 30, 2019[82] - Orders for the three-month period ended December 31, 2019, were $20,057 million, down 13% from $23,169 million in the same period last year[110] - Backlog decreased by 4% to $122,899 million at December 31, 2019, compared to $127,765 million on September 30, 2019[113] - Domestic orders accounted for 55% of total orders in the first nine months of fiscal 2020, compared to 64% in the same period of fiscal 2019[111] Profitability and Margins - Gross profit margin for Q3 FY2020 was 16%, down from 22% in Q3 FY2019, while gross profit increased to $4,044 from $3,742[87][97] - Gross profit margin for fiscal 2020 is expected to be in the range of 21% to 22%, down from 23.9% in fiscal 2019[117] Expenses and Investments - SG&A expenses for Q3 FY2020 were $4,441, an increase from $4,308 in Q3 FY2019, primarily due to investments in sales and support[99][100] - Capital expenditures for fiscal 2020 are projected to be between $2,500 million and $2,800 million, with 75% to 80% allocated for machinery and equipment[105] Cash and Investments - Cash and short-term investments at December 31, 2019, were $69,851, down from $77,753 on March 31, 2019[87] - Cash and investments decreased to $69,851 million on December 31, 2019, from $77,753 million on March 31, 2019, a decline of $7,902 million[106] - Approximately 95% of cash and investments are held in the U.S., with the remaining 5% invested in China operations[107] Market Outlook - The company expects order activity to improve over the next several fiscal quarters despite variability in new order levels[91] - The long-term outlook for the global energy and petrochemical markets supports growth plans, driven by rising populations and economic expansion[89] Taxation - The effective tax rate for the first nine months of fiscal 2020 was 22%, compared to 16% in the same period of fiscal 2019[102] Sales Distribution - Domestic sales accounted for 53% of total sales in Q3 FY2020, down from 83% in Q3 FY2019, while international sales surged by 313%[95]
Graham(GHM) - 2020 Q3 - Quarterly Report