Chart Industries Inc. reported resoundingly successful results for the second quarter ended 30th June 2008, including a sales growth of almost 20% to reach close to $200m.
Net sales for the second quarter of 2008 increased 18% to $197.8m from $167.6m in the comparable period a year ago. Gross profit for the second quarter of 2008 was $64m, or 32.3% of sales, compared to $51.3m in the comparable quarter of 2007.
Among other highlights, net income for the second quarter of 2008 totalled $22.2m compared with second quarter 2007 net income of $8.4m. Positive performances were notably felt across the Energy & Chemicals, Distribution & Storage, and BioMedical segments.
$quot;We are very pleased with the continued quarterly margin improvement led by our Energy & Chemicals (E&C) segment resulting from a more favorable project mix and continued improvements in project execution,$quot; stated Sam Thomas, Chart's Chairman, President and CEO.
$quot;In addition, E&C also benefited from several performance incentives and change orders earned during the period, which is an affirmation of the improved project execution.$quot;
Backlog as of 30th June 2008 stood at $498.1m, 20% greater than at the same period of 2007 and 6% greater than the backlog of $468.9m at 31st March 2008.
$quot;Our orders for the second quarter were very strong across all operating segments, particularly in the Distribution & Storage (D&S) segment. Orders were also up significantly at E&C as compared with the first quarter of 2008. We continue to see robust bid activity as our markets remain strong,$quot; Thomas explained.
E&C segment sales improved by 35% to $78.2m for the second quarter of 2008, compared with $58.1m for the same quarter in the prior year.
Such an increase is primarily attributable to increased throughput and flow through of backlog growth in the second half of 2007. E&C gross profit margin increased to 32% in 2008 compared with 27% in 2007.
Equally impressive were D&S segment sales, which for the second quarter of 2008 were $6.6m higher at $93.2m compared with $86.6m for the second quarter of 2007. Meanwhile, BioMedical segment sales for the quarter increased to $26.4m from $22.9m for the same quarter in the prior year, as medical respiratory product sales increased $1.5 million primarily due to continued growth in European markets and biological storage systems sales increased $2m.
Based on year to date results, current order backlog, and second half expectations, Chart has revealed it is raising previously announced sales and earnings guidance.
Sales for 2008 are now expected to be in the range of $770m to $800m, compared with previous guidance of $745m to $780m. Full year earnings per share are now expected to be in the range of $2.55 to $2.65 per diluted share, compared with prior guidance of $2.33 to $2.45 per diluted share, on approximately 29.1 million weighted average shares outstanding.