Environmental Elements earns 5 cents per share

4th profitable quarter after 2 years of losses

October 31, 2001|By Kristine Henry | Kristine Henry,SUN STAFF

After two years of losses, Environmental Elements Corp. reported its fourth-straight profitable quarter yesterday. The Baltimore-based maker of pollution-control equipment said it earned $341,000, or 5 cents a share, in its fiscal second quarter on sales of $18.65 million. That compares with a year-earlier loss of $5.97 million - or 84 cents a share - on sales of $12.2 million.

"This is our fourth consecutive quarter of increasingly profitable results and evidences the overall growth of our business fueled by orders from both existing and new customers and by continued cost control and process improvement," said John L. Sams, Environmental's president and chief executive.

Sams said the company's backlog was also up, going from $25 million as of September 2000 to nearly $47 million as of last month.

Environmental Elements lost $6.3 million in the last fiscal year and $4.5 million the previous year.

One of the initiatives by Sams after being hired in February 2000 was to boost the firm's focus on the service side of its business in hopes of earning revenue off past jobs instead of relying so heavily on winning new contracts.

Revenue from services was $12 million in fiscal year 2000 and rose to $19.6 million in fiscal 2001, which ended March 31. This fiscal year, revenue from services is expected to reach $25 million.

"We expect this trend to continue as we open additional regional service centers over the next few quarters to keep pace with customer demand for support from our services group," Sams said.

During the second quarter, the firm was also awarded a project to install five precipitators - which remove particulate pollutants from emissions - on three paper mills. The three-year contract is worth more than $16 million.

Shares of Environmental Elements gained 11 cents yesterday to close at $3.51.

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