Chart Industries, Inc. has reported healthy financial results for the fourth quarter and year ended December 31, 2006.
Net sales for the quarter increased 28 percent to $144.4m from $112.5m in the comparable period a year ago. For the year, net sales rose 33 percent to $537.5m from $403.1m in 2005. Net income for the quarter was $8.6m, which compares to a net loss of $13.3m for the same period a year ago. In 2005, the Company earned $8.4m.
$quot;We are very pleased with our fourth quarter and 2006 results, which exceeded our original expectations,$quot; stated Sam Thomas, Chart Industries, Inc. president and chief executive officer. $quot;Our strong sales gains in both the quarter and full year reflect the continued strength of our energy & chemicals and Distribution & Storage business segments.$quot;
Gross profit for the quarter was $42.4m, compared to $25.2m in the fourth quarter of 2005. Gross profit for the year was up 41 percent to $154.9m from $110.1m in the previous year. The company explain this increase in gross profit primarily reflects the strong sales volume.
$quot;Our gross profit margin for the fourth quarter improved to 29% from 28% in the third quarter of 2006 with the biggest change occurring in our Energy & Chemicals business, where gross profit margin continues to move towards more normal levels,$quot; stated Mr. Thomas. $quot;Good progress has been made on the two complex field installation projects reported on in prior quarters.
$quot;However, one of the projects will extend out to late 2007, which is later than originally anticipated, due to the customer's decision to replace certain materials rather than repair storm damaged materials. He also explained, $quot;We believe the costs to complete these projects continue to be consistent with our expectations, and have been adequately reflected in our actual financial results for the year and in our 2007 forecasted earnings.$quot;
Based on current market conditions and the strength of current backlog, the Company is establishing 2007 guidance which includes an estimate of net sales in the range of $604 million to $637 million. They further believe capital expenditures will range from $25m to $30m. Of this, about $8m will be used to double the size of the Company's manufacturing facility in China, accelerating its ability to meet the growing demand in China and globally. The company will also continue the expansions at its E&C Wisconsin and D&S Czech Republic manufacturing facilities in 2007.