Chart Industries, Inc. has reported results for the third quarter ended 30 September 2017. Highlights include:
- Reported EPS of US$0.05 and adjusted EPS of US$0.30 reflecting improved margin and SG&A cost structure.
- Gross margin as a percent of sales of 29.3% increased 280 basis points sequentially from the second quarter 2017; all segments’ gross margin as a percent of sales improved sequentially.
- Backlog of US$390.6 million (excluding Hudson Products Corporation) increased 6% sequentially from the second quarter 2017 and 14% from 31 December 2016.
- Completed Hudson acquisition which added US$6.1 million of sales and 20% operating income margin to the Energy & Chemicals segment for the 10-day ownership period in the third quarter.
- Closed the VCT Vogel acquisition on 31 August 2017, expanding the Distribution & Storage service and repair footprint in Europe; VCT Vogel is expected to add approximately US$4 million in annual revenue at anticipated gross margins of approximately 50%.
Net income for the third quarter of 2017 was US$1.5 million or US$0.05 per diluted share. Third quarter 2017 earnings would have been US$0.30 per diluted share excluding US$7.4 million of acquisition-related costs and US$2.7 million of restructuring costs. This compares with net income of US$2.8 million, or US$0.09 per diluted share, for the second quarter of 2017, or US$0.21 per diluted share on a comparable adjusted basis. Third quarter 2016 net income was US$15.0 million, or US$0.48 per diluted share.
Natural gas demand in both petrochemical and LNG export projects continued to show strength in the third quarter. Specifically, activity related to equipment for cryogenic gas plant development has generated year-to-date orders of approximately US$20 million for Chart brazed aluminum heat exchanger content and additional air cooled heat exchanger content.
Read the article online at: https://www.lngindustry.com/liquefaction/27102017/chart-industries-reports-2017-q3-results/