American Eco Comments On Turnaround Plan.HOUSTON--(BUSINESS WIRE)--Aug. 18, 1998--AMERICAN ECO E·co , Umberto Born 1932. Italian writer best known for his novels, including The Name of the Rose (1981). He has also written extensively on semiotics and British and American popular culture. CORPORATION (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ECGOF, TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :ECX ECX European Climate Exchange ECX E-Commerce Exchange ECX eCatalog XML ECX Extended Count Register ECX Electronically Controlled Telephone Exchange ECX Extrusion-Cast Explosive (fine-grain) ECX Experimental Concentration - Percent ) announced today that its Board of Directors recently approved a strategic plan developed by Frank J. Fradella, who was appointed President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of the Company on July July: see month. 21, 1998. The new plan addresses operating improvements which will enable the Company to resume profitable growth in the current fiscal quarter. In addition, these moves will enhance the Company's position for further growth as a leading consolidator in the industrial support and specialty fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. services sectors. Commenting on the highlights of the plan, Mr. Fradella indicated that the immediate goal is to cut overhead and make operating improvements to better realize the earnings potential of American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Eco's subsidiary companies. "Overall, our existing business base is solid. We have started a cost cutting program that entails selective personnel cuts and closing a number of divisional locations that are not contributing to the health of the Company as a whole," he said. Mr. Fradella indicated that he is in the early stages of adding key managers to his team and redeploying personnel in order to strengthen American Eco's regional management. "Our contracts come in at the local level and it is essential that we have highly capable regional managers in place for efficient and profitable business growth. In addition, we are investing in improving our financial controls, both systems and people, in order to have timely and accurate unit operating performance. These improvements will also serve as an early warning mechanism for potential problems," he added. "We expect a return to profitability in the current third fiscal quarter ending August 31, 1998 and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in the 30 cent per share range for fiscal 1998," he indicated. Pointing to the fact that American Eco had recorded 17 consecutive quarters of profitable growth prior to the second fiscal quarter results reported last month, Mr. Fradella noted that the Company aims to resume its role as an industry consolidator. "We will be following a much stricter protocol than in the past to assess the suitability of a potential acquisition candidate, both in terms of its ability to be accretive to earnings and our own ability to integrate the company successfully into American Eco. This effort is an integral part of our work in enhancing our operating base," he said. American Eco is a leading North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. provider of single-source industrial support and specialty fabrication services in the energy, pulp & paper, and power generating industries. Except for the historical information in this press release, the press release includes forward looking statements that involve risks and uncertainties including, but not limited to quarterly fluctuations in results, the management of growth, competition and other risks detailed in the Company's Securities and Exchange Commission filings. Actual results may differ materially from such information set forth herein.
CONTACT: American Eco Corp., Houston
Bruce Tobecksen, Senior Vice-President & CFO
888/774-3246
www.americaneco.com
or
Cindy Jackson, Director of Investor Relations
888/774-3246
cindy@americaneco.com
or
VMW Inc., New York
Sylvia Dresner, Senior Vice-President
212/605-3140
VMWeiner@aol.com
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