EA engineering profits decline 62.9% 3rd-quarter drop blamed on less government work

June 27, 1996|By Abbe Gluck | Abbe Gluck,SUN STAFF

EA Engineering, Science, and Technology Inc. said yesterday that its net income fell 62.9 percent from a year earlier for the quarter ended May 31. The Hunt Valley-based company also said earnings per share fell 63.6 percent.

Net income fell to $243,300 in its fiscal third quarter from $655,600 in the comparable 1995 quarter, the company said. Earnings per share dropped to 4 cents from 11 cents. Revenue fell to $16.6 million from $18.5 million.

EA Chief Financial Officer Joseph A. Spadaro blamed the decline on "difficulties in getting government funding as a result of the budget crisis this year."

In March, Legg Mason Inc. Vice President Laurence Baker said he expected EA to earn 10 cents per share in the third and fourth quarters.

Baker attributed the earnings disappointment to "the lingering effects of the winter weather" and increased competition.

To improve profitability, Spadaro said the company has been expanding its private sector business, with clients like Exxon Corp.

As a result, EA's "contracted backlog is higher than it was a year ago," he said. The company reported $57 million in backlog, compared with $53 million in the year-earlier quarter.

Baker called EA's expansion in the private sector "a fabulous idea, and some of the orders they got this year, one with Mobil in particular, reinforces that."

He said his March estimate that earnings per share would reach 10 cents in the fourth quarter is "still very reasonable."

For the first nine months of this fiscal year, EA said, revenue fell 8.9 percent to $48.5 million from $53.2 million in the comparable 1995 period.

Pub Date: 6/27/96

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