Environmental Elements Corp., the Baltimore-based maker of pollution control devices, reports that its fiscal third-quarter earnings increased eight-fold but were still short of projections.
The company said earnings in the quarter ending Dec. 31 were $1.4 million, or 20 cents a share, on sales of $20.8 million, compared with $150,000, or 3 cents a share, on sales of $13 million for the third quarter 1989.
Income from discontinued operations of $544,000, or 8 cents a share, reflects a previously reported sale of a joint venture
For the first nine months of the fiscal year, earnings were $4.6 million, or 75 cents a share, on sales $67.2 million, compared with income of $3.4 million, or 70 cents a share, on sales of $42.2 million.
"We are seeing pretty dramatic growth in the demand for the air pollution control systems that we developed and our revenues are showing a very attractive comparison," said John Lally, director of investor relations.
Contributing to the demand for the air pollution control devices is a need by the pulp and paper industry and by coal-fired power plants to curtail pollution, he said.
Environmental Elements went public in July and carries no debt.
Despite the increased earnings, F. Bradford Smith, president and chief executive officer, said the results are slightly below expectations.
"Recently, an uncertain political and economic environment has produced a less orderly marketplace for us," he said. "During the third quarter we experienced order placement delays and, for the first time, contract cancellations."
Smith said orders for the third quarter were $9.8 million, compared with $14.8 million last year. During the quarter, the company received cancellation notices on three contracts, totaling approximately $18 million.
But the company holds letters of intent from customers expected to bring an additional $24 million in revenue in the coming year. "We continue to experience encouraging contract inquiry activity and have seen evidence in January that order placements will improve in our fourth quarter," Smith said.
Environmental Elements Corp. has supplied air-pollution control systems for more than 40 years. designs and supplies electrostatic precipitator, fabric filter, and flue gas desulfurization, acid gas cleaning and continuous emission monitoring systems.