CECO ENVIRONMENTAL CORP Files SEC form 10-Q, Quarterly Report

Quote: White are presented as discontinued operations for the periods presented. Results of operations Table of Contents CECO ENVIRONMENTAL CORP. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Consolidated net sales from continuing operations for the first quarter were $35.0 million, a decrease of 8.1% or $3.1 million compared to the same quarter in 2009. The decline in first quarter net sales from continuing operations was attributable to a 40% decline in our contracting group sales offset by a 24% increase in our parts group sales and a modest increase in equipment group sales. Parts group sales increased due to smaller contractors cutting back on shop expenses and outsourcing the component parts and ducting products that they previously made in-house. Contracting group sales continue to be negatively impacted by the slow economy. Orders booked from continuing operations in the first quarter of 2010 were $27.1 million as compared to $35.0 million during the first quarter of 2009, a decrease of $7.9 million or 22.6%. Bookings have also been impacted by the slowing economy. First quarter 2010 gross profit from continuing operations was $8.0 million compared to gross profit from continuing operations of $8.7 million during the same period in 2009. This $0.7 million decrease in gross profit was the result of lower overall revenues. Gross profit from continuing operations, as a percentage of sales, increased to 22.9% in the first quarter 2010 from 22.8% in the comparable prior year quarter. Equipment group revenues before intercompany eliminations, which generate higher margins, comprised 64% of our current quarterly revenues compared to 55% for the same period last year. This shift in product mix is due to the greater impact of the weak economy on the contracting/services group. Additionally, the first quarter of 2010 was negatively affected by lower margins in our contracting ...
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