Segment profit increased to $20.2 million for the second quarter 2007, up over 9% from $18.4 million for the second quarter 2006.
John U. Clarke, NATCO's Chairman and CEO said, "We are pleased to progress our record of improving financial results. Each of the markets in which we operate remains active; while our focus on execution and risk management has improved our profitability and positions us well for further expansion, particularly in international markets. For the quarter, segment profit as a percent of revenue reached 14.3%. This performance bodes well for our successful growth of our global business as we look to leverage our engineering and project management infrastructure."
For the year to date period ended June 30, 2007 the Company posted revenue of $268.1 million, up 9% over year to date 2006; segment profit of $35.7 million, up 9% over year-to-date 2006; and net income available to common stockholders in 2007, of $20.2 million, or $1.07 per diluted share, compared with a net income available to common stockholders of $16.7 million, or $0.91 per diluted share for year to date 2006.
Bookings for the second quarter 2007 were $121.4 million, down 25% from second quarter 2006 bookings of $160.9 million, which included the $46.4 million Southeast Asia CO2 membrane project award.
For the second quarter 2007, the Oil & Water Technologies segment posted revenue of $95.2 million, in line with the second quarter 2006 revenue of $95.6 million. Segment profit increased $1.0 million to $9.2 million. The improved results included better execution of, and an improved margin profile on, built-to-order project business, as well as continued strength in our standard and traditional business in North America. Second quarter 2007 bookings for the segment were $80.7 million compared with $81.1 million for the second quarter 2006.
Revenue from the Gas Technologies segment was $20.6 million in the second quarter 2007, compared to $16.8 million in the second quarter 2006. Segment profit for the second quarter 2007 was $6.7 million compared with $7.6 million in the prior year period primarily as a result of revenue mix as the prior year's period included a significant membrane replacement sale. Bookings in the second quarter 2007 totaled $13.0 million, compared with $61.1 million in the second quarter 2006 which included the $46.4 million award of the Southeast Asia CO2 membrane project.
Revenue and segment profit contribution from the Automation & Controls segment in the second quarter 2007 increased 21% and 63% over the prior year's comparable period to $26.4 million and $4.2 million, respectively. The improvement in revenue and earnings is primarily the result of increased contributions from a field services project in Kazakhstan.
Diluted weighted average shares outstanding of 19.6 million for the second quarter 2007 increased from 19.2 million in the second quarter of 2006 as a result of the impact of the Company's stock options and restricted stock issued pursuant to the Company's stock compensation plans.
Mr. Clarke concluded, "We remain very positive about the near and long-term outlook for all segments of our business. With our goal of international, technology driven growth in mind, we continue to make the investments and commitments to infrastructure, joint venture alliances and new product development necessary for our future success."
The Company is reaffirming 2007 guidance with respect to segment profit of $76 to $82 million based upon revenue of approximately $560 to $580 million and earnings per diluted common share, excluding special items, of $2.30 to $2.50. For the third quarter 2007, the Company expects revenue of $145 to $155 million and segment profit of $20 to $22 million.
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