Chart Industries, Inc. has reported results for the fourth quarter (Q4) and full year which ended 31st December (2018).
Chart reported a net income for the full year (2018) of $53.6m.
Chart’s also reported a net income for Q4 of $18.0m.
During the fourth quarter, Chart Industries completed the sale of CAIRE Medical for $133.5m ($34.3m gain on the sale net of taxes) and closed the acquisition of VRV S.r.l. and its subsidiaries.
Q4 (2018) orders of $273.3m included $11.2m of orders from VRV during the company’s six-week period of ownership. This is a 10.3% increase over the fourth quarter of 2017, or 5.8% excluding VRV.
Full year 2018 orders were $1.14bn, a 32.6% increase over 2017 (11.7% increase organically), and set multiple annual order records. Full year 2018 packaged gas orders of $281.2m were the highest in Chart’s history. The company also had a record order year for Distribution and Storage in the European region as well as in its LNG trailer product line.
“Our 2018 order strength and robust start to 2019 across the segments supports our confidence in our increased 2019 sales and adjusted earnings per share guidance,” said Jill Evanko, CEO of Chart.
Chart reported full year sales (2018) of $1.08bn, which included $14.1m from VRV, a growth of 13.4% organically over 2017.
All three segments of the company’s full year sales increased organically compared to 2017. For the full year (2018), gross margin as a percent of sales was 27.3%, compared to 2017’s 27.5%.
2018 gross margin as a percent of sales included $40m of expense from the cryobiological aluminium tank recall in the second quarter, as well as $0.8m of restructuring costs.
Full year 2018 Energy & Chemical (E&C) sales for Chart of $390.5m grew 23.2%, with over 50% year-over-year increases in sales in the company’s brazed aluminium and air-cooled heat exchanger product lines. Market activity for US natural gas in 2018 was strong and drove up to $30m of related equipment sales.
Charts distribution and service (D&S) West fourth quarter and full year 2018 order strength was driven by packaged gas, standard tanks, and space launch application orders. D&S West full year 2018 sales of $455.5m increased 13.7% over the prior year, reflecting a 12.8% increase in packaged gas sales.
Charts D&S East’s 2018 was highlighted by the strength of orders both in Europe and China. D&S East’s China orders grew to $112.3m, a 15.3% increase over 2017, with bulk engineered tank orders doubling. D&S East sales for the full year of 2018 grew to $246.3m, an increase of 6% (1.6% organically). VRV contributed $10.3m of sales to D&S East for the companies six-week ownership period.
In 2019, Chart’s sales are expected to be in the range of $1.26bn to $1.31bn for the full year (2019), or 17-22% growth (1-9% organic growth). This is an increase compared to prior 2019 guidance of $1.24bn to $1.30bn, driving by the strength of 2018 orders.
Chart expects full year adjusted earnings per diluted share to be in the range of $2.50 to $2.80 per share, on approximately 32.0m weighted average shares outstanding, an increase to the company’s prior guidance. This excludes any structuring costs and transition-related costs, and as such is a non-GAAP measure.