As its second quarter 2009 figures are released, Chart says it will take advantage of potential market opportunities as economic conditions improve.
Net income for the second quarter of 2009 was $17.8m, in the same period of 2008 it was $22.2m.
The quarter included $4.1m in restructuring costs, primarily related to planned workforce reductions as part of the company's cost reduction initiatives.
Net sales decreased 21% to $155.3m, compared to $197.8m in 2008. Gross profit was $55.9m, in 2008 it was $64m.
$quot;Our cost reduction initiatives are driving strong financial performance despite continued weakness in order entry,$quot; commented Sam Thomas, Chart's Chairman, President and Chief Executive Officer.
$quot;During the quarter we continued to implement aggressive cost containment actions to right-size our businesses, but we also continued to experience good project execution in our Energy and Chemicals (E&C) business.$quot;
Two acquisitions completed during the second quarter of 2009 were Chengdu Golden Phoenix Liquid Nitrogen Container Co., Limited (Golden Phoenix), a manufacturer of liquid nitrogen aluminum storage containers used primarily for artificial insemination for animal breeding, located in Chengdu, China, and Tri-Thermal, a Tulsa, Oklahoma-based supplier of replacement parts for air cooled heat exchangers. Both of these acquisitions were all-cash transactions.
$quot;Golden Phoenix, which built a new manufacturing facility in 2007, will allow us to expand our Biomedical geographical manufacturing footprint in China to support the growing Asian demand for aluminum storage products,$quot; stated Thomas.
$quot;The Tri-Thermal acquisition allows us to build our E&C aftermarket business and provide significant value-added service to our customers. While these transactions are relatively small, they are important to our strategy of adding niche businesses that can expand our product offerings and services to our customers globally.$quot;
Backlog at 30th June 2009 was $224.6m, down 27% from the March 31, 2009 level of $307.5m. Orders for the second quarter of 2009 were $71.4m compared with first quarter 2009 orders of $89.3m.
$quot;As expected, orders remained weak during the quarter, particularly in our D&S and E&C businesses,$quot; added Thomas.
$quot;We remain cautious regarding second half 2009 order activity, but continue to see strong bid activity for large projects that we believe will lead to improved order intake by the end of 2009 or early 2010.$quot;
Sales for 2009 are expected to be in a range of $580 to $620 million.
Thomas concluded, $quot;With $205.4m of cash on hand, our balance sheet remains strong with significant liquidity.”
$quot;As we did this past quarter, we will continue to take advantage of potential market opportunities now and in the future as economic conditions improve.$quot;