Yearly Net for Wahlco Rises 54%

Wahlco Environmental Systems Inc., citing strong growth in international sales, said Monday that its earnings rose 54% to $11.6 million last year.

The company also said 1990 amendments to the federal Clean Air Act had boosted its sales and should continue to do so. The Irvine maker of air pollution control equipment for power plants said more than half its sales and manufacturing plants are abroad.

Wahlco set new records in revenue, earnings and backlog last year, President Henry N. Huta said in a statement.

Wahlco stock closed Monday at $13.375 a share, up 37.5 cents in New York Stock Exchange trading.

The company’s earnings, which amounted to 66 cents a share, compared to earnings of $9 million, or 55 cents a share, in 1990.

Wahlco said revenue rose 56% last year to $88.8 million from $57.7 million in 1990.

The company said its fourth-quarter profits rose nearly 100% to $3.7 million, or 21 cents a share, compared to $1.9 million, or 10 cents a share, in the year-earlier period.

Revenues rose 56% to $27.5 million from $17.6 million in fourth-quarter 1990.

The company said its backlog of orders for equipment rose to $53 million at the end of the year, up from $34 million a year ago.

“We are seeing the benefits of our global growth strategy with approximately 60% of our 1991 revenues coming from international customers,” Huta said.

One of the company’s fastest-growing products is its flue-gas conditioning equipment, which stock analysts who follow the company say is the least costly alternative available to utilities for meeting the first phase of the Clean Air Act amendments.

The company said sales of flue-gas equipment rose 40% during the year. And the impact of the legislation “has yet to be fully realized,” said Huta.

San Diego Gas & Electric Co. owns 80% of the company. The rest of the shares are traded publicly.

Wahlco Profits Wahlco Environmental Systems Inc. earned $11.6 million, or 66 cents a share, last year compared to $9 million, or 55 cents a share, in 1990. The company said that despite the recession, demand for its pollution-control equipment rose during the year.

Figures are in thousands, except per-share data.

4th Qtr 4th Qtr 12 Months 12 Months 1991 1990 1991 1990 Revenue $27,500 $17,600 $88,800 $57,700 Net income (loss) 3,700 1,900 11,600 9,000 Per share (loss) 0.21 0.10 0.66 0.55

Source: Wahlco Environmental Systems Inc.