Environmental Elements reports another profitable quarter 'Company is now back to a stable footing'


October 29, 1997|By Liz Bowie | Liz Bowie,SUN STAFF

After reducing its costs and increasing sales, Environmental Elements Corp. said yesterday that it ended its second quarter in the black, earning $28,000, or 0 cents a share, compared with a loss of $642,000, or 9 cents a share, in the second quarter of 1996.

The earnings met analysts' expectations and were the Baltimore-based company's third quarter of profitability after four years with only two quarters in the black.

The supplier of air pollution devices said its power and municipal solid waste customers were growing, although its industrial market remained soft. New orders increased by 4 percent to $17.7 million over the same period the year before.

"No doubt about it, the company is now back to a stable footing," said E. H. Verdery, chairman and chief executive officer Environmental Elements. "With the increase in backlog and bookings, we are looking forward to much better times in the future."

Sales during the quarter were $11.5 million, compared with $11.8 million in the year-earlier period. Sales in the six months were $25.4 million compared with $25.8 million in the 1996 period.

For the six months ended Sept. 30, the company reported net income of $42,000, or 1 cent a share, compared with a loss of $597,000, or 9 cents a share, a year ago.

The company said recent changes in air pollution regulations for ozone and small particulate matter are expected to provide more business for the company, but it may take two years to see the impact.

Pub Date: 10/29/97

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