Conrad Industries, Inc. announced its first quarter 2008 results and net new business of $21m, including the signing of contracts for the construction of eight barges and a drydock and cancellation of two barges of a four barge contract previously announced. This brings the current backlog to approximately $102.0 million compared to $96.4 million at March 31, 2008 and $81.7 million at March 31, 2007.
For the quarter ended March 31, 2008, Conrad achieved net income of $4.5 million and earnings per diluted share of $0.62 compared to net income of $3.3 million and earnings per diluted share of $0.45 during the first quarter of 2007 and net income of $6.3 million and earnings per diluted share of $0.86 during the fourth quarter of 2008.
Johnny Conrad, President and CEO said, “We are very pleased with our first quarter results with continued strong performances from both new construction and repair and conversion segments. We continue to add to our backlog as noted above and current demand for our products and services continues to be good, but we are experiencing pricing pressure and increase in cost and the delay and cancellation of projects from potential customers primarily due to a very volatile steel market. Steel prices have increased over 80% since the end of 2007 and we anticipate additional increases. Rising steel and machinery pricing and availability constraints lead to some uncertainty about our shorter-term demand and margins but we continue to be optimistic about the long-term prospects of our business.”
The addition to Conrad’s backlog included contracts signed for four 237’x54’x12’LPG tank barge hulls, three 140’x40’x9’ deck barges, one 290’x62’x18’6” 35,000 bbl. double skin barge and a 100’x70’x7’drydock. Additionally a previously signed contract for four LPG tank barges was reduced to two.