5.11.2003: Meldung: CECO Environmental Reports Increase in Third Quarter Earnings
Third quarter FY2003 gross profit was $3,496,000 (20.5%) compared to gross profit of $3,791,000 (19.4%) during the third quarter of 2002. The gross margin percentage improved by 1.1 points due to higher margins realized in CECO"s construction operations and lower fixed factory overhead costs.
Cost initiatives implemented during the second quarter of FY2003 coupled with initiatives previously announced and implemented in FY2002, have reduced CECO"s operating expenses on an annualized basis of approximately $2,800,000, since early 2002. As a result, selling and administrative expenses decreased by $424,000 to $2,443,000 during the third quarter of 2003 compared with $2,867,000 in the third quarter of 2002.
Operating profit generated during the third quarter FY2003 increased to $661,000 compared to $518,000 during the comparable period in FY2002.
Orders booked during the third quarter of FY2003 were $16,500,000 and $47,800,000 for the first nine months of 2003. This compares to $20,500,000 and $58,105,000 during comparable FY2002 periods. September 30, 2003, backlog was $13,000,000, compared to $14,600,000 at December 31, 2002.
First nine months FY2003 net loss was ($94,000) or ($0.01) per share compared with ($341,000) or ($0.04) per share for the same period last year.
Chairman and CEO, Phillip DeZwirek, stated, "We reported stronger earnings in the third quarter despite lower sales volume. This is our third consecutive quarter of improved financial results. The stronger earnings are the result of three important factors: improved margins, the substantial reduction in operating expenses since FY2002 and a decrease in long term debt resulting in lower interest costs. Bank debt was $11.1 million at September 30, 2003 versus $17.0 million at September 30, 2002 and aggregate debt was $16.6 million at September 30, 2003 compared to $21.0 million at September 30, 2002, a reduction of $4.4 million. We have made significant strides in executing our operating plan and CECO is positioned to produce improved financial results."
President, Richard Blum added, "On the selling front, we continue to experience an increase in selling activities during FY2003 throughout our organization. This may be due to an improvement in the economy as seen by our customers. The strength of the North American economic recovery for the industrial markets has yet to be established so its difficult to predict the turnaround in the economy, but, our focus remains the same -- meeting our customer expectations, managing spending and improving CECO"s financial results."
ABOUT CECO ENVIRONMENTAL
CECO Environmental Corp. is North America"s largest independent air pollution control company. Through its five subsidiaries -- Busch, CECO Filters, CECO Abatement Systems, kbd/Technic and Kirk & Blum -- CECO provides a wide spectrum of air quality services and products including: industrial air filters, environmental maintenance, monitoring and management services, and air quality improvements systems. CECO is a full-service provider to the steel, military, aluminum, automotive, aerospace, semiconductor, chemical, cement, metalworking, glass, foundry and virtually all industrial process industries.
For more information on CECO Environmental please visit the company"s website at http://www.cecoenviro.com/.
Phillip DeZwirek, CECO Environmental Corp.
Source: CECO Environmental Corp.