CECO Environmental Corp Reports Earnings

CECO Environmental Corp. (CECE) reported earnings results for the fourth quarter and full year ended December 31, 2007 on March 10, 2008. For the quarter, the company reported net income of $1,818,000 or $0.12 per diluted share on net sales of $67,986,000 compared net income of $1,201,000 or $0.09 per diluted share on net sales of $41,498,000 to for the same period a year ago.

For the year, the company reported net income of $6,305,000 or $0.45 per diluted share on net sales of $235,953,000 compared net income of $3,094,000 or $0.24 per diluted share on net sales of $135,359,000 to for the same period a year ago.

Phillip DeZwirek, chairman and CEO, said in a news release that the company's gross profit margin fell slightly over the year because of a lower margin on a large automotive project.

"We anticipate that both gross and operating margins will increase in the future as the large project is completed and anticipated new higher-margin contracts are completed," he said in the release.

The order backlog at the end of 2007 was $85.5 million, compared to $97.1 million at the end of 2006, the company said in a news release.

DeZwirek figures the market for air pollution-control products has soared from $5 billion a couple of years ago to more than $50 billion now. The heightened attention to the environment is the driving force.

"They've really put together a full-service company that no one can compete against," said Bill Gregozeski, analyst at Capstone Investments in Milwaukee.

With the addition of Fisher-Klosterman, Inc. I think CECO Environmental Corp. (CECE) is still a great buy at these levels and will have a very successful 2008 even with a slowdown in the US economy. This site is all about long term investment after all and with a air-pollution controls market that is growing this fast CECO is certainly in the right spot.