Environmental Elements Corp. earns 10 cents a share

Profitable year expected by manufacturer of anti-pollution equipment

January 30, 2002|By Eileen Ambrose | Eileen Ambrose,SUN STAFF

Environmental Elements Corp. reported its fifth consecutive profitable quarter yesterday and said it would likely end its fiscal year with a profit for the first time in two years.

The Baltimore-based maker of air pollution control equipment earned $703,000, or 10 cents a share, on sales of $20.2 million in its fiscal third quarter, which ended Dec. 31. That compares with a $17,000 profit on sales of $14.8 million in the previous third quarter.

John L. Sams, who became president of the company two years ago to lead its turnaround, said Environmental Elements hasn't been affected by the recession and is ahead of its performance projections.

"We already exceeded our plans we had for the year in the first nine months," he said.

The unit that services and maintains air pollution control equipment is the company's most profitable business partly because of new maintenance centers, Sams said. Revenue in the services unit this fiscal year is expected to grow 25 percent from the previous year to $25 million.

The company also said its backlog of orders for services and equipment reached $43.9 million at the end of December, compared with $24.3 million the year before.

Among the third-quarter highlights are an $11 million contract to supply equipment to a Midwest utility; the opening of service centers in Philadelphia, Canada and the United Kingdom; and five more projects for American Electric Power, bringing the value of a multiyear contract to $35 million.

For the first nine months, Environmental Elements earned $1.35 million, or 18 cents per share, on sales of $55.7 million, compared with a loss of $6.4 million, or 90 cents a share, on sales of $43.5 million the year before.

Shares of the company's stock gained 36 cents yesterday to close at $4.25

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