Chart Industries Q3 Profit Climbs; Lowers 2013 Targets - Quick Facts

(RTTNews) - Chart Industries, Inc. (GTLS) posted higher third-quarter net income of $24.4 million, or $0.74 per share, versus last year's $18.5 million, or $0.61 per share, a year ago.

Earnings for the recent period would have been $0.82 per share, excluding $1.0 million, or $0.02 per share, of costs recorded in the quarter largely associated with the AirSep acquisition, as well as a $0.06 per share impact associated with Chart's Convertible Notes given Chart's stock price performance, the company said. Third-quarter 2012 earnings would have been $0.66 per share, excluding $2.0 million, or $0.05 per share, of costs largely associated with the AirSep acquisition, which closed in August 2012. On average, 15 analysts polled by Thomson Reuters expected earnings per share of $0.88 for the quarter. Analysts' estimates typically exclude one-time items.

During the quarter, net sales were up 19% year-over-year to $301.8 million, from $254.2 million, while 13 analysts estimated revenues of $325.02 million for the period.

Based on the quarterly results, current order backlog, and business expectations, the firm is adjusting both its sales and earnings guidance. Due to customer schedule changes and higher than anticipated costs for certain large projects in its E&C segment, sales and earnings are running lower than previously expected. However, the company said its strong outlook for 2014 and beyond on the use of natural gas, and LNG in particular, remains very positive.

For 2013, sales are projected to be in a range of $1.175 billion - $1.225 billion, and earnings per share are now expected in a range of $2.90 - $3.00 per share. This excludes the impact of $0.19 per share mainly due to anticipated AirSep acquisition costs and any dilution impact resulting from the Notes. This compares with the prior sales guidance of $1.2 billion - $1.3 billion and earnings view of $3.10 - $3.40 per share, excluding $0.15 per share in anticipated AirSep acquisition costs and any dilution impact resulting from the notes. Analysts project annual earnings of $3.20 per share, on $1.24 billion sales.

Separately, Chart Industries reported signing a deal with Wuxi City Zhongbo Heat Exchanger Co., Ltd., to acquire the company's brazed aluminum heat exchanger or BAHX business for undisclosed terms. The acquired operations would be managed by Chart's Energy & Chemicals segment or Chart E&C.

The deal includes the construction of a new, purpose built BAHX manufacturing and Cold Box fabrication facility in Wuxi, China. Chart E&C's existing Cold Box fabrication facility in Changzhou, China, would be integrated into the new facility in Wuxi, which would open up more capacity for Chart's D&S LNG business in Changzhou.

Chart is also expanding manufacturing capacity at its BAHX operations in La Crosse, Wisconsin, increasing capacity in North America by 40%, as announced earlier. La Crosse would remain the design and manufacturing headquarters of global BAHX operations. Both expansion projects are likely to close in the first half of 2014.