Chart Industries has reported results for the second quarter ended 30 June 2006.
"Our 2006 second quarter sales increased 30 per cent over the corresponding quarter in 2005, reflecting strong sales for all of our business segments," stated president and CEO Sam Thomas.
"Our gross profit was higher by more than $6m, or 22 per cent, primarily driven by higher sales volume. Our gross profit margin for the 2006 second quarter was favourably impacted by improvements in both our distribution & storage and biomedical segments, but was down slightly at 28 per cent, compared with the second quarter of 2005, due to higher than anticipated project execution and field installation costs within our energy & chemicals segment."
Thomas continued: "We continue to benefit from strong growth in the global hydrocarbon and industrial gas markets. Backlog at 30 June 2006 grew 17 per cent compared with backlog at 31 March 2006, and 55 per cent compared with backlog at 30 June 2005. Orders in the second quarter of 2006 totalled $150m, compared with $125m in the first quarter of 2006 and $117m in the second quarter of 2005. Cash provided by operating activities was about $18m for the first half of 2006 on improved cash earnings and working capital management, which is over $19m greater than the same period in the prior year."
The company's selling, general and administrative (SG&A) expense was $21.2m, or 16 per cent of sales, for the second quarter of 2006, compared with $14.5m, or 15 per cent of sales, for the same quarter in 2005. The increase was primarily due to higher employee-related and infrastructure costs to support Chart's business growth. Also contributing were costs incurred related to storm damage at an energy & chemicals project site and higher amortisation for finite-lived intangible assets.