Marsulex announces third quarter 2009 results

TORONTO , Nov. 4 /CNW/ - Marsulex Inc. (TSX: MLX) today announced results for the three and nine months ended September 30, 2009 . Revenue for the quarter was $79.9 million compared with $83.2 million in 2008. Gross profit was $27.1 million compared with $27.5 million in 2008. Earnings before income taxes for the quarter were $12.5 million compared to $10.3 million in 2008 and net earnings for the quarter were $8.7 million ( $0.26 per share) compared to $7.6 million in 2008 ( $0.23 per share). The third quarter financial statements and MD&A will be available on SEDAR at www.sedar.com and on the Company's website www.marsulex.com.

    
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                        Three months ending        Nine months ending
                               September 30,             September 30,
    (In millions of
     dollars, except                              %                        %
     per share amounts)        2009    2008     chg     2009     2008    chg
    -------------------------------------------------------------------------
    Revenue                  $ 79.9  $ 83.2   -4.0%  $ 237.7  $ 247.4  -3.9%
    Gross profit               27.1    27.5   -1.5%     92.6     76.7  20.7%
    Earnings before
     income taxes              12.5    10.3   21.4%     40.4     24.1  67.6%
    Net earnings                8.7     7.6   14.5%     27.5     17.4  58.0%
    Earnings per
     share  - basic            0.26    0.23   13.0%     0.84     0.52  61.5%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

Commenting on the results, Marsulex President and Chief Executive Officer, Mr. Laurie Tugman said, "The performance of each of the operating units continues to be solid even though the economy remains somewhat uncertain. The results for the quarter and year-to-date further demonstrate the stability of the Company's earnings and strong cash flow."

    
    Highlights:

    -  Marsulex quarterly revenues and gross profit were in line with results
       from a year earlier. On a year-to-date basis profits improved on
       increased earnings from MET on contract closeouts in the second
       quarter.

    -  Pre-tax earnings for the quarter increased $2.2 million on lower
       interest rates and foreign exchange gains. On a year-to-date basis,
       pre-tax earnings increased $16.3 million, again, on stronger results
       from MET.

    -  During the quarter, the Company's executive team was strengthened with
       the appointment of Randy Hull as Senior Vice President, Business
       Development and Kelly Breedon as Vice President, Human Resources.
       These appointments fill positions vacated earlier in the year.

    -  Following quarter end, MET was recognized by the United States
       Government for an export achievement award. As well, the first
       application of the Company's ammonium sulphate FGD technology outside
       of North America went into commercial operation during the quarter.
       The project was awarded to a MET licensee in China last year.
    

On October 13, 2009 , Mr. Bob Yohe , a long-standing director of Marsulex passed away. Mr. Tugman , expressing his condolences to Mr. Yohe 's family on behalf of Marsulex said, "Bob has been a central figure at Marsulex and has played an important role in the Company's growth and development. His presence and counsel will be sorely missed."

Marsulex, which is based in Toronto , Ontario, is a leading provider of industrial services, including environmental compliance solutions for air quality control, processing or handling of industrial by-products or waste streams, and is a producer and marketer of sulphur-based industrial chemicals. The Company's services and products are provided to a broad base of industrial customers in a wide range of industries. Website: www.marsulex.com

A conference call with analysts and portfolio managers to review the third quarter 2009 results will be webcast live on www.marsulex.com and www.newswire.ca on Thursday, November 5, 2009 at 10:00 a.m. Eastern Time .

Information in this news release that is not current or historical factual information may constitute forward-looking information, including future-oriented financial information and financial outlooks, within the meaning of securities laws. This information is based on certain assumptions regarding expected growth, results of operations, performance, and business prospects and opportunities (collectively, the "Assumptions"). While the Company considers these Assumptions to be reasonable, based on information currently available, they may prove to be incorrect. Forward-looking information is subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from what the Company currently expects. These risks, uncertainties and other factors include, but are not limited to: the Company's ability to renegotiate contracts; the impact of acquisitions and growth opportunities; the timing and market acceptance of future products; competition in the Company's markets; the Company's reliance on customers; fluctuations in currency and exchange rates; commodity prices or interest rates; the Company's ability to maintain good relations with its employees; changes in the law or regulations regarding the environment or other environmental liabilities; the Company's ability to integrate acquisitions; and the Company's ability to protect its intellectual property (collectively, the "Risks"). For more exhaustive information on these Risks you should refer to our Company's filings with the securities regulatory authorities, including the Company's most recently filed annual information form, which is available on SEDAR at www.sedar.com. Additional information relating to the Company can be found on the SEDAR website.

Actual results may differ materially from what the Company currently expects. Other than as required under securities laws, we do not undertake to update any forward-looking information at any particular time. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. All forward-looking information contained in this news release is expressly qualified in its entirety by this cautionary statement.

For further information: Laurie Tugman, President and CEO, Tel: [phone] or William Martin, Chief Financial Officer, Tel: [phone]