Chart Industries income drops in Q1

Chart Industries reported a net income of $5.2 million for the first quarter of 2015, compared with net income of $12.0 million in the same period last year.

First quarter 2015 earnings would have been higher excluding $0.9 million of acquisition-related retention costs, as well as facility shutdown and other severance costs recorded in the quarter.

In addition, foreign currency loss was $3.1 million for the first quarter of 2015 as the strength of the U.S. dollar had a significant negative impact on our European operations. Foreign currency loss was $0.1 million in the first quarter of 2014.

Net sales for the first quarter of 2015 decreased 8% to $245.1 million from $266.2 million in the comparable period a year ago.  Gross profit for the first quarter of 2015 was $72.5 million, or 29.6% of sales, versus $77.5 million, or 29.1% of sales, in the comparable quarter of 2014.

“We demonstrated solid execution across many of our businesses in the first quarter, despite energy and currency headwinds,” stated Sam Thomas, Chart’s Chairman, President and Chief Executive Officer. “We are continuing to pursue aggressive cost reduction initiatives we revealed last quarter, including the planned closure of our Distribution & Storage LNG equipment manufacturing facility in Owatonna due to slowing LNG infrastructure build-out in North America. As we move through 2015 we will continue to focus both on solid operational execution and pursuit of our long-term strategic growth initiatives including acquisitions.”

Thomas said that despite the short-term challenges the company is confident in the long-term fundamental drivers of its growth, including rising industrial production and an increased demand for energy globally.

“We are particularly encouraged by the interest and quoting activity we continue to see for North American LNG export projects from customers who share our long-term view of oil and natural gas pricing, including potential opportunities with Venture Global LNG and Parallax Energy for whom we are currently executing advance engineering for multi-train export facilities,” he said.

Backlog at March 31, 2015 was $608.7 million, down 5% from the December 31, 2014 level of $640.1 million. Orders for the first quarter of 2015 were $219.5 million compared with $218.5 million for the fourth quarter of 2014.

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Image: Chart Industries