| Key Figures (US$ million) | ||
|---|---|---|
| Second quarter ended 30.6 | ||
| 2020 | 2019 | |
| Net Sales | 75.2 | 81.2 |
| Cost of Sales | 49.4 | 54.3 |
| Gross Profit | 25.8 | 26.8 |
| Operating Income | 4.4 | 2.0 |
| Income before Tax | 3.8 | 1.4 |
| Net Income | 3.3 | 5.5 |
| Six months ended 30.6 | ||
|---|---|---|
| 2020 | 2019 | |
| Net Sales | 155.7 | 167.2 |
| Cost of Sales | 101.6 | 111.9 |
| Gross Profit | 54.1 | 55.3 |
| Operating Income | 8.6 | 6.9 |
| Income before Tax | 8.0 | 4.1 |
| Net Income | 6.7 | 7.4 |
Source: Ceco Environmental Q2 2020 results.
COMMENT.
Ceco Environmental has posted second quarter fiscal 2020 net sales of US$75.2 million, down US$7.4 million on the year prior, in a period that saw the company continue to respond to the Covid-19 pandemic.
Despite the revenue downturn, Ceco did make some profitability gains. Operating profit more than doubled on the fiscal 2019 comparator to US$4.4 million, while on a non-GAAP basis it was up 68.2% at US$7.4 million. Reported net income was down 40.0% to US$3.3 million, but rose 70.0% on a non-GAAP basis to US$5.1 million.
Ceco's new CEO Todd Gleason, who joined the company in July from Scientific Analytics, expressed satisfaction with the performance in a quarter that also saw it complete its acquisition of Environmental Integrated Solutions Ltd (EIS) of Birmingham, UK.
“During the second quarter, the Ceco team delivered focused execution and solid customer service while adjusting for the disruptions associated with the wide-spread Covid-19 pandemic,” Gleason said. “The company enacted proactive measures to reduce costs in anticipation of the market declines, which maintained strong profitability and margin rates while streamlining operations for future quarters. Additionally, we executed the EIS acquisition, which advances our industrial solutions portfolio and positions us for growth in the European industrial markets.”
For the corresponding six-month period, revenues were down 6.9% on the prior year at US$155.7 million, while net income was down 9.5% at US$7.4 million.