Although it improved its performance, Environmental Elements Corp. said yesterday it lost money again in its fiscal second quarter.
The Baltimore-based company, which sells air-pollution control devices, reduced its losses from 33 cents per share, or $2.3 million, in the quarter ended Sept. 30, 1995, to 9 cents per share, or $642,000, for the same period this year.
The company predicts it will become profitable in the fourth quarter of this fiscal year after receiving a $9 million contract from Savannah Energy Systems Co.
"We earned a higher margin on reduced sales," said Edward H. Verdery, EE's president and chief executive officer.
"In a market that is competitive, we have been able to maintain and improve our market share."
The company began to see revenues decline because of changes in the Clean Air Act. Companies that had been regularly updating equipment held off. But that is expected to change, Verdery said.
The company's sales decreased from $16.1 million for the second quarter a year ago to $11.8 million for 1996.
However, new orders continued to grow, and the company predicts it will be well positioned when the market for its products does return.
The company contracts out a portion of its work in manufacturing the anti-pollution devices.
Part of the improved performance, company officials said, was made in changing subcontractors, improving its designs, reducing the number of errors and limiting cost overruns.
Pub Date: 10/23/96
