The independent global manufacturer of engineering equipment specifically designed for the storage and end-use of hydrocarbon and industrial gases has reported solid second quarter 2011 fiscal results.
For the period ended 30th June 2011, Chart saw net income of $10.6m, or $0.35 per diluted share. The comparative rates from last year make for staggering reading; in the second quarter of 2010 net income was $2.4m, or $0.08 per diluted share.
Meanwhile net sales for Q2 of 2011 increased 44% to £200.7m from $139.1m in the comparable period a year ago. Similarly, gross profit rose 31% to $62.3m, versus sales of $37.6m during Q2 of 2010.
Sam Thomas, Chairman, President and CEO for the firm praised specific sectors when he commented on the glowing results: $quot;Order strength continues, led by record orders in our Distribution & Storage ($quot;D&S$quot;) business as well as the LNG equipment order in excess of $40 million in our Energy & Chemicals ($quot;E&C$quot;) business that was announced today. We booked $577 million in orders during the first half of 2011, and as a result, have launched expansion plans at both our China and Louisiana facilities to keep up with a very strong project pipeline, which we expect will continue.”
$quot;Increasing demand for natural gas liquids (NGL) plants in the U.S. and LNG projects worldwide have increased demand for our brazed aluminum heat exchangers and cold boxes. The NGL plant market and corresponding petrochemical project demand is entering an up cycle. The LNG business is at the beginning of an emerging market cycle and represents a long term growth opportunity for the Company.$quot;
Thomas added, $quot;The recently announced acquisition of GOFA Gocher Fahrzeugbau GmbH (GOFA), located in Western Germany, which we expect to close during the third quarter, expands our product offering into the European mobile equipment segment for cryogenic equipment. With the addition of this product line, a complete LNG virtual pipeline can be offered regionally.$quot;
Based on these latest results, Chart predicts sales for 2011 to be in the range of $780 to $820 million which is raised on previous forecasts of $740 to $780m.
Full year earnings per share for 2011 are also expected to increase to the range of $1.75 to $1.95 per diluted share. The company is equally optimistic regarding the full 2011 tax rate. In an official statement, Chart commented, “Although the current quarter's effective tax rate was higher, we expect the second half rate to be lower and the Company's full year effective tax rate should approximate 30% to 32%.”