SIFCO 2006-10K with tax and audit changes120106

Annual Report and Form 10-K Fiscal Year 2006 To our Shareholders: In fiscal 2006, SIFCO Industries, Inc. took a number of important steps to strengthen its financial condition and to position the Company to better serve the markets in which it competes. A few key items that were accomplished in fiscal 2006 include - strong growth in both sales and order bookings in our Aerospace Component Manufacturing Group; additional investment in domestic as well as international opportunities in our Applied Surface Concepts nd the timely sale of the large aerospace portion of the Turbine Component Services and Repair Group. With these items in mind, fiscal 2006 can be better understood when viewed from the perspective of each of SIFCO’s business segments. Aerospace Component Manufacturing (“ACM”) Group – Fiscal 2006 sales were up 42% when compared to fiscal 2005. This healthy increase was fueled by both (i) strong growth in the aerospace programs in which SIFCO participates, as well as (ii) the impact of raw material steel price increases that were, in part, passed through to SIFCO’s valued customers. In addition, sales bookings continued to be very strong throughout fiscal 2006 culminating in a $53 million backlog of orders scheduled for shipment in 2007. Existing military programs, such as Sikorsky’s Blackhawk helicopter, experienced a strong increase in orders. SIFCO was also successful in securing new ...