For
the nine months ending Sept. 30, 2008, EMCOR Group reported a revenue rise of
22.7 percent to $5.1 billion from $4.2 billion for the same period in 2007.
Organic revenue growth, excluding revenues from companies acquired during the
past 12 months, was 12 percent in the first nine months of 2008.
For
the 2008 nine-month period, the company reported net income of $121.9 million,
or $1.82 per diluted share, an increase of 59.4 percent, compared to net income
of $76.5 million, or $1.15 per diluted share, for the first nine months of
2007.
The company’s results for the
2008 nine-month period include a one-time charge, substantially all of which is
noncash, of $7.9 million, or $0.07 per diluted share after-tax, resulting from
an adverse jury verdict in a construction contract case in the 2008 second
quarter.
For
the third quarter of 2008, EMCOR reported revenues were $1.72 billion compared
to $1.50 billion in the third quarter of 2007, an increase of 14.6 percent, of
which 8 percent was organic growth (which excludes the contribution from
businesses acquired during the past year). Net income was $48.6 million, or
$0.72 per diluted share, an increase of 26.9 percent over net income of $38.3
million, or $0.57 per diluted share, for the third quarter of 2007.
“The
2008 third quarter … saw continued margin expansion across most of our business
segments, as both our organic and acquired businesses continued to perform
strongly, supported by end markets with demand drivers not tied to the current
economic cycle and rising demand for higher-margin facilities services,” saidFrank T. MacInnis, chairman and CEO of EMCOR
Group.
He
continued: “The keystone of our long-term strategic growth plan has been the
diversification of our business to hedge against construction cyclicality and
to provide a solid underlying level of earnings power for the company through
targeted growth of our facilities services businesses. At the same time, we
have undertaken strategic acquisitions, such as Ohmstede, S.A. Comunale and a
number of mechanical services companies, which have shifted the mix of our
business to stable end markets such as refining, fire protection and mechanical
services, which are less capital intensive and not as vulnerable to economic
downturns than construction.”
Based
on current market conditions, EMCOR now expects revenues of between $6.8
billion and $7 billion and diluted earnings per share of between $2.48 and $2.58
for the 2008 full-year period.
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