EA Engineering reports loss, deal to sell Sparks lab

Net drop is $2.1 million

65 expected to keep jobs in sale to N.J. laboratory

April 09, 1999|By Mark Ribbing | Mark Ribbing,SUN STAFF

EA Engineering, Science and Technology Inc., a Hunt Valley energy and environmental consulting firm, reported a loss yesterday for the second quarter and said it intends to sell its EA Laboratories division.

For the quarter ending Feb. 28, EA had a net loss of $2.1 million, or 33 cents per share, on $12.4 million in revenue. The loss includes a one-time restructuring charge and a write-off of assets.

In the same period last year, EA had net income of $121,300, or 2 cents per share, on $14.4 million in revenue.

Company founder Loren D. Jensen said in a statement that the second-quarter numbers reflected a tightening government market. Jensen was recently reappointed as chief executive officer after the resignation of former president and CEO Donald A. Drieso.

"[Revenues] have been steadily declining as multi-year government contracts have reached completion without being replaced by new contracts," Jensen said.

"As a result, expenses remained steady in the face of declining revenues, causing earnings erosion and morale problems within the organization," Jensen said, adding that the company has embarked on a major restructuring.

EA said it has issued a letter of intent to sell its EA Laboratories division to Severn Trent Laboratories Inc. of Whippany, N.J., a division of Severn Trent PLC, a British water and waste services company.

Terms of the deal were not disclosed. EA said the sale is expected to close by April 30.

Melissa L. Kunkel, an EA spokeswoman, said: "There are no anticipated job losses" at the Sparks laboratory, which has approximately 65 employees and annual revenue of $6.4 million.

Kunkel said EA is selling the laboratory, which performs soil sampling and other chemical tests, to focus on consulting work.

EA shares closed at 93.75 cents, down 18.75 cents.

Pub Date: 4/09/99

Baltimore Sun Articles
|
|
|
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.