Ionics Lowers Earnings Expectations for Third Quarter

Updated 4:16 PM ET September 20, 2000

WATERTOWN, Mass., Sept. 20 /PRNewswire/ -- Ionics, Incorporated announced today that it expects earnings for the third quarter to be approximately 40% lower than the current consensus estimate of $.35 per share.

Commenting on the announcement, Arthur L. Goldstein, Chairman and Chief Executive Officer, noted that operating losses during the quarter in the Company's Malaysian subsidiary and one of its Australian subsidiaries represented about one-third of the expected shortfall. The remainder is attributable to continued pressure on capital equipment margins, and to increased fuel, labor and distribution costs in the Company's U.S. bottled water business, exacerbated by lower bottled water revenues due to a cooler- than-expected summer season. In addition, he noted that another contributing factor was the lack of completion of financing arrangements for a large desalination project which affected the timing of recognition of related revenues and earnings. Mr. Goldstein noted further that some of these factors and conditions could continue in the fourth quarter of 2000.

Ionics is a global separations technology company involved in the manufacture and sale of membranes, equipment and own and operate services for the purification, disinfection, concentration, treatment and analysis of water, wastewater and ultrapure water. Over a period of more than 50 years Ionics has built more desalination plants than any company in the world. Ionics has been a pioneer in purified water with its worldwide five-gallon brand, Aqua Cool(R) Pure Bottled Water.