Insituform's Q3 profit flat on falling sales
Insituform Technologies Inc. reported Monday that its third-quarter profit was nearly flat as quarterly revenue dropped 7.2 percent on lower Tite Liner business.
For the third quarter ended Sept. 30, Insituform's profit fell about 1 percent to $5.7 million on revenue of $144 million compared with profit of $5.76 million on revenue of $155.2 million in last year's quarter.
Third-quarter revenue fell 16 percent in Tite Liner, Insituform's proprietary polyethylene pipe lining system. The Tite Liner segment's revenue in the third quarter was $9.8 million compared to $11.7 million in the third quarter of 2005. Insituform said that the decline was due to exceptionally strong quarterly results in 2005 for the Tite Liner business.
Insituform's President and CEO Thomas Rooney Jr. said in a statement, "As expected, the Tite Liner business again generated very strong profits for the quarter." He said the company's tunneling segment has made critical progress and is poised to begin quarter-over-quarter positive cash generation for the first time in several years. The company's core rehabilitation segment has a significant backlog that Insituform believes will fuel the segment's continued growth, Rooney said.
Chesterfield, Mo.-based Insituform Technologies Inc. (Nasdaq: INSU) provides rehabilitation and repair services to sewer, water and other underground piping without digging and disruption.