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Tax law causes E&E's loss to grow

Ecology & Environment's second-quarter loss widened as a one-time charge related to the new federal tax law added to a modest loss from the Lancaster environmental services firm's operations.

E&E lost $768,000, or 18 cents per share, during the quarter that ended in January, more than double the loss of $318,000, or 7 cents per share, a year ago. The tax law changes accounted for most of the increase in the loss, equaling 10 cents per share.

E&E's net sales rose by less than 2 percent to $25.1 million during the quarter that ended in January, compared with $24.7 million a year ago. U.S. revenues fell by 10 percent, while sales at E&E's South American subsidiaries, which were depressed during the last two years by softness in the energy and mining sectors, grew by 39 percent.

E&E said it had an operating loss of $260,000 in the quarter, compared with an operating profit of $245,000 a year ago.

"Funding and project delays and general uncertainty in the market have impacted our results in the second quarter," said Gerard A. Gallagher III, E&E's president and CEO. "But as we continue to implement strategies to more closely align our business with active and emerging markets, we see opportunities to build on E&E's strong foundation."

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