A net loss of $0.4 million in Q2 2010, compared to net income of $0.6 million in 2009.
For the first six months of 2010 ZCL Composites reports revenue of $55.5 million and a net loss of $3.2 million, compared to revenue of $47.2 million and a net loss of $0.8 million for 2009.
“The loss in the second quarter of 2010 was attributable to our new Dualam operations,” says Ven Côté, ZCL’s President and CEO. “A lull in the development of major US projects, including the construction of scrubber systems for coal-fired power plants, has temporarily reduced business for Dualam and others in the corrosion industry. The loss also reflected continued weakness in sales to independent retail service station customers in the US due to the ongoing economic uncertainty.”
ZCL acquired Dualam Plastics Inc of Montreal, Quebec, in January 2010, to expand its presence in the corrosion market. Dualam provides composite products for use in the power generation, chemical, chloralkali, pulp and paper and other industrial sectors.
“For the second half of 2010, with a strong and improving backlog in other sectors of our business, we are cautiously optimistic we will see a significant improvement in financial performance,” Côté adds.
“We continue to have a very positive long-term outlook for the new ZCL-Dualam operations and believe growth will be driven by a regulatory push to reduce sulphur dioxide and other emissions. As the economy gains strength, we expect ZCL to return to strong annual revenue and earnings growth.”