While highlight a strong operating cash flow of $38 million, noting several cost-cutting measures beginning to pay off and Chart Thermax’s contract for LNG vaporizers for an import terminal in India, Chart Industries reported first quarter 2016 results that showed a net loss of $4.7 million, or $0.15 per diluted share, for the first quarter of 2016.
Net sales for the first quarter of 2016 were down 20.9 percent to $193.8 million from $245.1 million in the comparable period a year ago. Gross profit for the first quarter of 2016 was $52.7 million, or 27.2 percent of sales, versus $72.5 million, or 29.6 percent of sales, in the comparable quarter of 2015.
Energy and Chemicals
Energy and Chemicals (E&C) segment sales decreased 56.6 percent to $38.0 million for the first quarter of 2016 compared with $87.5 million for the same quarter in the prior year. The decline was due to lower sales volume seen across all product lines in natural gas, petrochemical, and LNG applications. A number of large projects were also completed in 2015, resulting in lower current quarter revenues. E&C gross profit margins were 14.4 percent in the 2016 quarter compared with 28.4 percent in the same quarter of 2015. Gross profit margins were negatively impacted as a result of lower throughput and highly competitive markets.
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