Chart Industries, Inc., an independent global manufacturer of highly engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases, has reported a slowdown in sales for Q3 2014. The North American market however, indicates a positive future for LNG where LNG is being entertained by several sectors of the natural gas for transportation industry.
Net sales for the third quarter of 2014 decreased 3% to $293.8 million from $301.8 million in the comparable period a year ago. Gross profit for the third quarter of 2014 was $91.2 million, or 31.0% of sales, versus $88.6 million, or 29.4% of sales, in the comparable quarter of 2013.
“Strength in North American industrial gas demand improved results in both packaged and bulk applications during the quarter,” said Sam Thomas, Chart’s Chairman, President and Chief Executive Officer. “There is growing interest in LNG as a fuel for high-horsepower applications in such industries as rail, mining, marine, and oil & gas. This supports the long-term positive outlook for natural gas as a diesel replacement,” he added.
Looking to the future, Chart says that based on third quarter results, current order backlog, and business expectations for the remainder of 2014, the Company is adjusting its previously announced sales and earnings guidance. With the continued uncertainty in China and BioMedical demand, in addition to global macro-economic concerns and the recent drop in oil prices, annual sales and earnings are no longer expected to reach the Company’s previous estimates. Overall, Chart remains positive on the long-term outlook for the use of natural gas as a diesel replacement for a variety of applications.
(Source: Chart Industries)