CECO Environmental: Q2 & Six Month 2010 Results
CECO Environmental Corp., a leading provider of industrial ventilation and pollution control systems, announced second quarter results for the period ended June 30, 2010.
Financial highlights from continuing operations for the second quarter of 2010 compared to the second quarter of 2009 include:
Net sales increased from $32.4 million to $34.8 million;
Gross profit increased to $8.4 million from $7.5 million;
Gross margin increased to 24.2% from 23.3%;
Selling & administrative expenses were reduced by $0.7 million to $6.9 million;
Operating income increased to $1.4 million from a loss of $0.2 million in 2009;
Net income was $0.7 million compared to a net loss of $0.5 million in 2009;
Net income per diluted share was $0.05 compared to net loss per diluted share of $0.03 in 2009;
Backlog as of June 30, 2010 was $55.1 million compared to $58.6 million as of March 31, 2010.
Financial highlights from continuing operations for the six months ended June 30, 2010 compared to six months ended June 30, 2009 include:
Net sales remained constant at $70.0 million;
Gross profit increased from $16.2 million to $16.4 million;
Gross margin increased to 23.5% from 23.0%;
Selling & administrative expenses were reduced to $14.1 million from $14.8 million;
Operating income increased to $2.0 million from $1.0 million in 2009;
Net income was $0.8 million compared to net income of $0.1 million in 2009;
Net income per diluted share was $0.06 compared to net income per diluted share of $0.00.
The increase in revenues for the three months ended June 30, 2010 is indicative of the improvement in the economic environment and our global market coverage initiative. Our equipment group and our parts group both experienced sales increases in the quarter which were partially offset by a reduction in contracting/services revenues. The comparative six month sales mix was consistent with that of the second quarter. This shift in product mix as well as improving margins created an increase in overall gross profit percentages for the quarter and the six month periods.
"I am very pleased with the results from the second quarter and the improved financial performance that the Company has achieved," commented CECO's Chief Executive Officer, Jeff Lang. "We are now realizing the positive results from both an improved economic environment and our significant productivity improvements and cost management initiatives that we began implementing earlier this year."
Mr. Lang continued, "We continue to streamline our operations and recently closed two manufacturing facilities as well as winding down a third plant. In addition, our focus on lean business methods and operational excellence continue to drive our strategy of making CECO a true global leader in our sector."
ABOUT CECO ENVIRONMENTAL
CECO Environmental Corp. is North America's largest independent air pollution control company. CECO provides a wide spectrum of air quality services and products including: industrial air filters, environmental maintenance, monitoring and management services, and air quality improvement systems. CECO is a full-service provider to the steel, military, aluminum, automotive, ethanol, aerospace, electric power, 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.
Jeff Lang, CECO Environmental Corp.