| May
05, 2003
CECO ENVIRONMENTAL REPORTS FIRST
QUARTER RESULTS
NEW
YORK, May 5, 2003 - CECO Environmental
Corp. (NASDAQ: CECE), a leading provider of
industrial ventilation and pollution
control systems, today announced
first quarter results for the
period ended March 31, 2003.
Revenue for the three-month
period ended March 31, 2003 was
$15,201,000 compared to $18,879,000
during the same quarter in 2002.
First quarter FY2003 gross profit
was $3,069,000 (20.2%) compared
to $3,838,000 (20.3%) during
the first quarter in 2002. Strong
project management coupled with
reduced factory overhead expenses
maintained CECO's gross margin
in this competitive economic
environment. Management's cost-containment
plans implemented in 2002 were
instrumental in reducing factory
overhead expenses in the current
quarter.
Selling and administrative expenses
decreased by $540,000 to $2,542,000
during the first quarter of 2003
from $3,082,000 in the same period
of 2002. FY2003 will benefit
from two previously announced
cost reduction initiatives (principally
through efficiencies and consolidation
of functions) that were implemented
during May and September of 2002.
Annualized cost savings of $2,000,000
are expected, which began during
the third quarter of 2002.
Operating profit for the first
quarter FY2003 was $124,000 compared
to $299,000 during the comparable
period in 2002.
Net loss for the quarter ended
March 31, 2003 was ($249,000)
or ($0.03) per share compared
to net loss of ($197,000) or
($0.02) per share for the same
period in 2002.
Orders booked during the first
quarter of 2003 were $14,350,000
compared to $19,530,000 in the
same quarter of 2002. March 31,
2003, backlog was $13,500,000,
compared to $14,600,000 at December
31, 2002. First quarter FY2003
bookings included $5,725,000
in previously announced contracts
spanning diverse industry market
sectors; $2,750,000 order for
an automotive parts foundry located
in Mexico, $1,600,000 order for
a rubber manufacturer, $875,000
order for a steel mill and a
$500,000 order for a power generation
utility.
President, Richard Blum, stated, "We
are seeing the sales opportunities
throughout the industrial market
sector improving. The decline
in our first quarter bookings
reflected the reluctance of many
of our current and prospective
customers to spend needed capital
expenditures in this current
economic environment." Blum
added, "We are realizing
the benefits of our cost reduction
initiatives in reduced operating
costs. Economic uncertainties
aside, we are continuing to target
further efficiencies and cost
reductions throughout CECO." |
