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UPDATE 2-Emcor Q4 profit falls, gives weak 2010 outlook
February 25, 2010 / 1:26 PM / 8 years ago

UPDATE 2-Emcor Q4 profit falls, gives weak 2010 outlook

* Q4 EPS $0.58 vs $0.90 a year ago

* Revenue down 19 pct

* Sees 2010 EPS $1.45-$1.85 vs est $2.11

* Shares fall 4 pct before the bell (Adds details, share movement)

Feb 25 (Reuters) - Emcor Group Inc (EME.N), a construction and engineering company, said its quarterly profit fell 35 percent, hurt by higher expenses, and forecast full-year earnings below market estimates, sending its shares down 4 percent.

The company said it was cautious about the broader economic environment with a continuing lack of visibility in some of its end markets.

Backlog trends indicate that the commercial and hospitality and gaming sectors continue to show significant softness in demand, Emcor Chief Executive Frank MacInnis said in a statement.

Backlog was $3.15 billion as of Dec. 31, a 21 percent fall from last year.

Emcor expects more technically sophisticated projects under the stimulus package entering the market, MacInnis said.

But a shift in mix towards a greater percentage of public and quasi-public projects will affect margins during 2010, the company said.

Emcor sees 2010 earnings of $1.45 to $1.85 a share, on revenue of about $5 billion.

Analysts on average were expecting earnings of $2.11 a share, before special items, on revenue of $5.64 billion, according to Thomson Reuters I/B/E/S.

For the fourth quarter, net income fell to $39.2 million, or 58 cents a share, from $60.3 million, or 90 cents a share, a year ago.

The latest quarter’s results include a non-cash impairment charge of 14 cents a share, Emcor said.

Revenue fell 19 percent to $1.36 billion, while selling, general and administrative expenses rose 6 percent to $153.8 million.

Analysts on average had expected earnings of 49 cents a share, before special items, on revenue of $1.36 billion.

Shares of the company fell 4 percent to $22.76 in pre-market trade Thursday. They closed at $23.60 Wednesday on the New York Stock Exchange. (Reporting by Divya Sharma in Bangalore; Editing by Anne Pallivathuckal and Gopakumar Warrier)

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