GTS Duratek's April acquisition leads way to a 236% jump in profit $1.4 million earned in third quarter

Disposal industry

November 07, 1997|By M. William Salganik | M. William Salganik,SUN STAFF

Continuing to show the effects of a major acquisition in April, GTS Duratek, a hazardous waste disposal company based in Columbia, posted earnings and revenue for the third quarter that were more than triple the corresponding quarter last year.

Duratek earned $1.4 million in the quarter, up 236 percent from $426,000 in 1996. Per-share earnings were 7 cents, in line with analysts' projections.

Revenue in the quarter was $36.4 million, up 217 percent from $11.5 million in the same quarter last year.

Most of the growth came from the acquisition of the Scientific Ecology Group from Westinghouse Electric Corp. for $28 million and 156,986 shares of stock.

Despite the jump in profit during the quarter, Duratek registered a loss of $2.2 million for the nine months ended Sept. 30, after taking a $5.9 million charge in the first quarter related to a shutdown and modification of a federal cleanup site in South Carolina.

For the first three quarters of 1996, Duratek posted earnings of $1.4 million. Revenue in the nine months was $86.3 million, up 158 percent from $33.4 million last year.

Included in the work in South Carolina was replacement of a melter that converts low-level nuclear waste into glass that can be stored for thousands of years.

Robert E. Prince, Duratek's president and chief executive officer, said yesterday, "We completed the installation of the new melter in October and, approximately two weeks ago, we restarted the melter. We are on track to begin radioactive waste processing by year-end."

Duratek stock closed yesterday at $14.125 a share, down 25 cents.

Pub Date: 11/07/97

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