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 BALTIMORE, Oct. 22 /PRNewswire/ -- Environmental Elements Corporation (NYSE: EEC) today announced operating results for its second quarter ended Sept. 30, 1993.
 The company reported a loss from continuing operations of $959,000 ($.14 per share) for the quarter ended Sept. 30, 1993, compared to a loss of $2,036,000 ($.29 per share) for the second quarter last year. Sales were $19.5 million in this year's second quarter versus $17.7 million last year. Contract bookings for the quarter were $10.6 million, compared to $20.7 million in last year's second quarter. As a result, backlog stood at $45.5 million at quarter end versus $64.7 million a year ago and $48.3 million at the beginning of the fiscal year.
 For the six months ended Sept. 30, 1993, the company reported a loss from continuing operations of $631,000 ($.09 per share) versus a loss of $3,900,000 ($.55 per share) last year. Sales for the first half of the fiscal year were $45.1 million compared to $39.9 million last year.
 F. Bradford Smith, president and chief executive officer commented, "Operating results for the quarter were weak due primarily to the effects of low volume and low margins. Our general and administrative expense has increased slightly year to year, due primarily to increased expenses for litigation associated with a subcontractor claim and higher expenses in our European and aftermarket businesses.
 "Although we continue to maintain our market shares, orders have continued to materialize very slowly. A handful of large jobs are pending in the short term, and there appears to be a reasonable level of opportunity for utility contract awards in the six to 12 month range. The industrial and waste incineration markets continue to be slow.
 "An increasing volume of utility work continues to be on the horizon for the next year. However, recent experience has taught us to be cautious about market expectations. Therefore, we will continue structuring our business to operate profitably at lower sales levels. We expect that these efforts, along with only modest improvement in orders, will allow us to return to profitability next year. It is now evident that low sales will continue to result in earnings weakness for the second half of this fiscal year."
 Environmental Elements Corporation, a leading air pollution control systems supplier for more than 45 years, designs and supplies electrostatic precipitator, fabric filter, flue gas conditioning, flue gas desulfurization, acid gas cleaning and continuous emissions monitoring systems. Environmental Elements' systems enable a broad range of customers in the power generation, pulp and paper, waste to energy, rock products, metals and petrochemical industries to operate their facilities in compliance with particulate and gaseous emissions standards.
 Summary Consolidated Financial Data
 (In thousands of dollars, except per-share amounts)
 Periods ended Three Months Six Months
 Sept. 30 1993 1992 1993 1992
 Sales $19,458 $17,678 $45,135 $39,893
 Cost of sales 16,824 15,776 39,134 37,062
 Gross Profit 2,634 1,902 6,001 2,831
 Operating expenses:
 Selling 1,468 1,610 2,843 3,074
 General and
 administrative 2,107 1,803 3,772 3,587
 Total 3,575 3,413 6,615 6,661
 Operating Income (Loss) (941) (1,511) (614) (3,830)
 Interest Income
 (expense), net (22) (160) 15 (31)
 Other income
 (expense), net 9 (9) (2) (20)
 Income (Loss) from
 Continuing Operations
 before Income Taxes (954) (1,680) (601) (3,881)
 Provision (benefit) for
 income taxes 5 356 29 19
 Income (Loss) from
 Continuing operations (959) (2,036) (631) (3,900)
 Gain on disposal of
 discontinued operations,
 net 44 230 50 372
 Net Income (Loss) (915) (1,806) (581) (3,528)
 Per share of common
 stock and common stock
 Income (loss) from
 continuing operations (0.14) $(0.29) $(0.09) $(0.55)
 Income from discontinued
 operations 0.01 0.03 0.01 0.05
 Net Income (Loss) (0.13) (0.26) (0.08) (0.50)
 Average shares
 outstanding 6,893 7,022 6,935 7,018
 Backlog, end of period 45,500 64,700 --- ---
 -0- 10/22/93
 /CONTACT: John S. Lalley Jr., director, investor relations and corporate communications, of Environmental Elements, 410-368-7340/

CO: Environmental Elements Corporation ST: Maryland IN: SU: ERN

MJ-JM -- PH001 -- 5571 10/22/93 08:06 EDT
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Publication:PR Newswire
Date:Oct 22, 1993

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