March 12, 2009
CECO ENVIRONMENTAL REPORTS
RECORD FOURTH QUARTER 2008 PROFIT
Quarterly Operating Income Increases 57% to $4.4 Million
Quarterly Operating Margin Increases by 3.4 Percentage Points
CINCINNATI, OHIO, March 12, 2009 - CECO Environmental Corp. (NASDAQ: CECE), a leading provider of industrial ventilation and pollution control systems, today announced record fourth quarter and full year results for the period ended December 31, 2008.
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 percentage 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:
Net sales decreased 7.7% to $217.9 million;
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;
Net income - $5.0 million compared to $6.3 million in 2007;
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 CEO, 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 , COO, 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.”
CECO will hold its quarterly conference call to discuss fourth quarter results on Thursday, March 12, 2009 at 10:30 a.m. Eastern Daylight Time.
Dial in number: 866.730.5763
International : 857.350.1587
Passcode: 43462973
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