Chart Industries Reports 2009 Third Quarter Results
finance.yahoo.com
CLEVELAND, Oct. 29, 2009 (GLOBE NEWSWIRE) -- Chart Industries, Inc. (Nasdaq:GTLS), a leading independent global manufacturer of highly engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases, today reported results for the third quarter ended September 30, 2009. Highlights include:
* First sequential order increase since second quarter 2008
* Adds third strategic acquisition of the year
* Cash and short term investments increase to almost $220
million
Net income for the third quarter of 2009 was $8.2 million, or $0.28 per diluted share. This compares with $20.4 million, or $0.70 per diluted share in the comparable period a year ago. The third quarter of 2009 included $1.2 million in restructuring costs, or $0.03 per diluted share, primarily related to planned workforce reductions as part of the Company's previously announced cost reduction initiatives. Net sales for the third quarter of 2009 decreased 33% to $127.2 million from $188.8 million in the comparable period a year ago. Gross profit for the third quarter of 2009 was $39.4 million, or 31.0% of sales, versus $66.2 million, or 35.0% of sales, in the comparable quarter of 2008.
"The strength of our backlog going into the economic downturn, together with our early focus on cost reduction initiatives, has enabled us to weather this storm successfully to date," stated Sam Thomas, Chart's Chairman, President and Chief Executive Officer. "We continue to focus on winning opportunities that will allow us to grow our business at the leading edge of the recovery. Excluding recent acquisitions, our workforce levels are now down by 24% since the end of last year. We continue to strengthen the balance sheet and improve liquidity while strategically adding acquisitions that expand our global footprint."
During the third quarter, the Company announced the acquisition of Covidien's oxygen therapy business, its third strategic acquisition during 2009. This will substantially expand BioMedical's liquid oxygen therapy business including products sold under the leading Companion(TM) and Helios(TM) brands. The acquisition includes these well established brand names as well as design, manufacturing, and sales and service functions worldwide. The acquisition is expected to close by the end of this year.
Backlog at September 30, 2009 was $189.2 million, down 16% from the June 30, 2009 level of $224.6 million. Orders for the third quarter of 2009 were $91.5 million compared with second quarter 2009 orders of $71.4 million.
"Although overall order levels remained relatively weak, I am encouraged to see third quarter orders up sequentially," stated Mr. Thomas. "This is the first such quarterly increase since the second quarter of 2008. Orders have remained relatively constant in our BioMedical business throughout the economic downturn and have stabilized and started to trend up in our Distribution and Storage ("D&S") business, but still remain weak in our Energy and Chemicals ("E&C") business."
"We are optimistic about several potential significant LNG project orders for E&C that are expected in early 2010 and we continue to invest in strategic relationships in this area," Mr. Thomas acknowledged. "In addition to our historic base-load LNG relationships, we have a key alliance agreement with Energy World Corporation ("EWC") for supplying process technology and equipment for their mid-scale LNG liquefaction plants. We are substantially complete on an order to provide equipment for four liquefaction trains that EWC is building in Indonesia and look forward to orders and delivering additional trains. We also entered into an agreement with Toyo Engineering Corporation in 2009 to jointly pursue other mid-scale LNG opportunities." |
