CECO Environmental Corp. (CECO) has reported net sales of $217.8 million for the year-end 2008, down 7.7%, compared with the net sales of $235.9 million in the previous year-end. It has also reported a net income of $5.01 million, or $0.30 per diluted share, for the year-end 2008, compared with the net income of $6.3 million, or $0.45 per diluted share, in the pervious year-end.
Financial highlights for the fourth quarter of 2008 compared to the fourth quarter of 2007 include:
Net sales decreased 14.3% from $68.0 million to $58.3 million;
Gross profit increased 34.8% from $11.2 million to $15.1 million;
Gross profit margins increased by 9.4 percentage points;
Operating income increased 57.1% from $2.8 million to $4.4 million;
Operating margins increased by 3.4% points;
Other income of $.9 million represents unrealized foreign exchange gains;
Net income – increased $1.6 million to $3.4 million, an 88.9% increase;
Earnings per diluted share increased 58.3% to $0.19 from $0.12 in 2007.
Financial highlights for the twelve months ended December 31, 2008 compared to twelve months ended December 31, 2007 include:
Gross profit increased 10.7% to $43.4 million;
Gross profit margins increased by 3.3 percentage points;
Operating income decreased 34.9% to $8.2 million;
Earnings per diluted share – $0.30 compared to $0.45 in 2007.
Backlog as of December 31, 2008 was $68.0 million compared to $85.5 million as of December 31, 2007.
Chairman and chief executive officer, Phillip DeZwirek, stated, “Our record fourth quarter gross profit results reflect the continuing success of our vertical and horizontal integration strategy as well as our global expansion to Asia and South America. It is noteworthy that our quarterly gross profit margin percentage increased to 25.9% which reflects the shift in our product mix to higher margin product and service offerings.”
Rick Blum , chief operating officer, commented, “In addition to our increasing gross profit margins it is important to also note the increasing diversification of our customer base. This diversification has not only been in terms of new industries like power and refining but also new geographic areas such as China, Japan, Korea and Saudi Arabia.”