EA Engineering sees sharp earnings drop

October 01, 1990|By Liz Atwood | Liz Atwood,Evening Sun Staff

EA Engineering, Science and Technology Inc., a Hunt Valley-based consulting firm, expects a sharp drop in its fourth-quarter earnings. But its chairman told analysts that revenues should continue to grow by 35 to 40 percent a year.

Dr. Loren D. Jensen said that income is expected to fall for the second quarter in a row due to a delay in samples being sent to the company's laboratories from environmental cleanup operations. Those samples, coming mainly from cleanups on military bases, have been delayed because workers have been unable to get the permits necessary to do the work, he said.

Another factor is the slowdown in the economy, which is translating into a lull at the EA Muller consulting engineers subsidiary, Jensen said.

He presented his company's profile at a seminar on the environmental industry hosted in Baltimore by Alex. Brown & Sons Inc.

Joseph A. Spadaro, the company's chief financial officer, estimated that fourth quarter profit will be between $175,000 and $200,000, compared with $416,000 in 1989. The fourth quarter results are to be released at the end of October.

In the third quarter, the company earned $549,000 on sales of $29.8 million, compared with $739,000 on sales of $23.5 million in the same period in 1989.

The company is projecting that 1990 earnings per share will be 30 cents compared with 47 cents last year. Revenues, however, are expected to increase to $42 million, compared with $33 million last year.

EA Engineering employs about 750 people in 15 offices around the country, including about 350 in the Baltimore area.

The company provides a variety of consulting and engineering services to address environmental and health hazards. The company also designs building systems for energy conservation, creates plans to clean up contaminated sites and develops solutions for waste management, energy conservation and emissions control.

Jensen said that, despite a downturn in the third and fourth quarters, the company is in a strong position to face a recession if one occurs. Not only is the company dispersed geographically throughout the United States, but it also is involved in a number of businesses.

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