Chart Industries Reports First-Quarter Earnings of $.02 Per Share

Apr 30, 2001, 01:00 ET from Chart Industries, Inc.

    CLEVELAND, April 30 /PRNewswire/ -- Chart Industries, Inc. (NYSE:   CTI)
 today reported financial results for its first quarter ended March 31, 2001.
 Chart reported first-quarter sales of $89.0 million and net income of $0.02
 per share.
     Sales for the first quarter of 2001 increased 29.0 percent to $89.0
 million from $69.0 million for the corresponding quarter in 2000. Net income
 was $405,000, or $0.02 per diluted share, for the first quarter of 2001
 compared with a net loss of $385,000, or $0.02 per diluted share, for the
 first quarter of 2000.
     Commenting on Chart's first-quarter results, Arthur S. Holmes, Chairman
 and Chief Executive Officer, said, "Our first-quarter operating results were
 somewhat stronger than expected due to a favorable sales mix. Although
 originally anticipated to be soft, our 2001 first-quarter sales were close to
 our strong fourth quarter of 2000.
     "Each of our three business segments produced sales growth over the same
 quarter of last year, resulting in a 29 percent increase. Our operating income
 of $8.2 million was down slightly from the fourth quarter of 2000, as
 expected, but 61 percent better than the same quarter of 2000. Net income for
 the first quarter was impacted by a non-cash interest charge of $822,000 and a
 net of tax cumulative effect charge of $88,000 related to the application and
 adoption of the new accounting rules for derivative financial instruments.
 This non-cash charge reduced net income per diluted share by $0.02.
     "Our biggest businesses saw flat to softer order intake this quarter. The
 Distribution & Storage (D&S) segment order flow continued to be stable with
 new orders at the same level as last quarter and consistent with current sales
 levels. In the Applied Technologies (AT) segment, we have experienced a slow
 down of orders for certain product lines. The depressed market conditions for
 the Process Systems & Equipment (PS&E) business have continued. In addition to
 the delayed recovery of the industrial gas market, the relatively active
 hydrocarbon processing market has not generated firm orders. These projects
 appear to be very viable but continue to delay order award dates. We have
 taken steps to reduce manpower levels and other costs for the slower product
 lines, particularly in the PS&E segment. Further reductions and consolidations
 are being studied for implementation if the recovery continues to delay.
     "Based upon our understanding of current economic conditions, we
 anticipate 2001 to have revenue growth compared with 2000, but lower gross
 margins due to the anticipated sales mix and lower pricing in the PS&E
 segment. The current trend of lower interest rates will be beneficial to Chart
 going forward. We also plan to use internal cash flows generated to invest in
 our leading growth businesses and hope to obtain outside financing to
 accelerate their introduction to the market. Overall, our profitability is
 expected to improve compared with 2000.
     "In summary, our challenge is to continue to improve operating performance
 under soft economic conditions and reduce debt. We are taking decisive actions
 to reduce costs, sell under-performing assets and promote growth initiatives."
     Financial highlights are as follows (all figures are in thousands of
 dollars except per-share amounts, which are based on average shares
 outstanding on a diluted basis):
 
                                 Three months ended March 31,
 
                                    2001         2000    % Increase
     Sales                        $89,032      $68,992      29.0%
     Gross profit                  27,069       19,760      37.0%
     Net income (loss)                405         (385)      N/M
     Net income (loss) per share -
       assuming dilution             0.02        (0.02)      N/M
 
     N/M = Not meaningful
 
     CONSOLIDATED FIRST-QUARTER 2001 FINANCIAL RESULTS
     Sales for the first quarter of 2001 were $89.0 million versus $69.0
 million for the first quarter of 2000, an increase of $20.0 million, or
 29.0 percent. The improvement in sales compared to the first quarter of 2000
 is largely driven by projects in the PS&E segment. Sales for the current
 quarter included heat exchangers and cold boxes for the Trinidad project,
 acoustic liquefaction equipment and several smaller hydrocarbon projects. Also
 contributing to the higher sales was the AT segment, which had increased sales
 in the LNG alternative vehicle fuel equipment, medical oxygen and biological
 storage markets compared with the first quarter of 2000.
     Gross profit for the first quarter of 2001 was $27.1 million versus
 $19.8 million for the first quarter of 2000, an increase of $7.3 million, or
 37.0 percent. Gross profit margin for the first quarter of 2001 was
 30.4 percent versus 28.6 percent for the first quarter of 2000. The increases
 in gross profit and gross profit margin occurred largely in the PS&E segment,
 where the gross margin increased from 9.2 percent in the first quarter of 2000
 to 28.1 percent in the first quarter of 2001, and gross profit increased by
 $5.3 million. These increases were the result of better volume in hydrocarbon
 equipment, particularly the Bechtel jobs for the Trinidad LNG Expansion
 project.
     Selling, general and administrative (SG&A) expense for the first quarter
 of 2001 was $17.6 million, versus $13.5 million for the first quarter of 2000.
 This increase reflected higher employee benefit costs for medical coverage and
 workers' compensation. SG&A expense as a percentage of sales increased to
 19.8 percent for the first quarter of 2001 versus 19.5 percent for the first
 quarter of 2000.
     The Company recorded $1.2 million of goodwill amortization in the first
 quarter of 2001 and 2000.
     The Company entered into two interest-rate collars covering a total of
 50 percent of the Company's term debt shortly after entering into its Credit
 Facility in 1999. The collars are intended to mitigate the risk of increasing
 interest rates by providing a cap on the base rate paid while also giving the
 counterparties to the transaction a floor on the interest rate received. Under
 newly adopted accounting rules for derivative financial instruments, the
 Company recognized a charge to earnings in the first quarter of 2001 for the
 change in fair value of the interest rate collars despite making no actual
 payments under the floor provisions. The fair value of the interest rate
 collars is determined by the expectation of future interest rates and is,
 therefore, difficult to predict. The liability relating to the collars of
 $1.0 million recorded by the Company at March 31, 2001 represents the market's
 estimate of payments above actual rates to be made over the life of the
 collars.
     Net interest expense for the first quarter of 2001, excluding the charge
 related to the interest rate collars, was $6.3 million compared with
 $6.2 million for the first quarter of 2000, reflecting higher average
 borrowings during the period. As of March 31, 2001, the Company had borrowings
 of $264.8 million under its Credit Facility and was in compliance with all
 related covenants.
     Cash used in operations for the first quarter of 2001 was $5.6 million
 compared with cash provided by operations of $8.0 million in the first quarter
 of 2000. The Company's 2001 first-quarter operating cash flow primarily
 reflects increasing inventory levels, as shipments slowed in certain product
 lines, as well as reductions in accrued expenses, including customer rebates
 and employee incentives.
     Capital expenditures for the first quarter of 2001 were $2.0 million
 compared with $1.2 million in the first quarter of 2000. The Company believes
 that $1.4 million to $2.0 million per quarter is the normal maintenance level
 for capital expenditures.
     The Company forecasts sufficient cash flow from operations and available
 borrowings to fund principal and interest payments, working capital
 requirements and capital expenditures for the current fiscal year. The Credit
 Agreement amendment, which provided relief on financial covenants, and the
 additional liquidity facility agreed upon during the fourth quarter of 2000
 expire at the end of 2001. The Company is currently evaluating its options
 related to the Credit Facility.
 
     ORDERS AND BACKLOG
     Chart's consolidated orders for the first quarter of 2001 totaled
 $73.0 million, compared with orders of $84.9 million for the fourth quarter of
 2000. Chart's consolidated firm order backlog at March 31, 2001, was
 $89.9 million, compared with $108.1 million at December 31, 2000.
     AT orders for the first quarter of 2001 totaled $29.8 million, compared
 with $43.7 million for the fourth quarter of 2000. The fourth-quarter orders
 for MRI cryostats were bundled together to cover several quarters of
 shipments, and were therefore much larger than normal. The MRI cryostats line
 has seen a slow down in requested shipments. The segment has also experienced
 a slow down in orders for cryogenic components, especially vacuum-insulated
 pipe.
     D&S orders for the first quarter of 2001 totaled $32.9 million, compared
 with $32.6 million for the fourth quarter of 2000. Orders have been lower in
 D&S over the last two quarters, reflecting some economic softness and tighter
 budgeting by our customers.
     PS&E orders for the first quarter of 2001 totaled $10.3 million, compared
 with $8.5 million in the fourth quarter of 2000. Orders in this segment are
 lower after two strong quarters in early 2000, which included large awards for
 the Trinidad LNG Expansion project. The Company has experienced continued weak
 order flow in this segment in both the industrial gas and hydrocarbon
 processing markets notwithstanding stronger quote activity in natural gas and
 petrochemical processing.
 
     GENERAL
     This release contains forward-looking statements that are subject to
 certain risks and uncertainties that could cause actual results to differ
 materially from those expressed or implied by such statements. Such risks and
 uncertainties include, but are not limited to, unanticipated slowdowns in the
 Company's major markets, the impact of competition, the effectiveness of
 operational changes expected to increase efficiency and productivity, the
 ability of the Company to satisfy covenants under its Credit Facility, the
 ability of the Company to obtain outside financing for business development
 initiatives, the extent of product liability claims asserted against the
 Company, and worldwide economic and political conditions and foreign currency
 fluctuations that may affect worldwide results of operations.
 Chart Industries, Inc. manufactures standard and custom-built industrial
 process equipment primarily for low-temperature and cryogenic applications.
 Headquartered in Cleveland, Ohio, Chart has domestic operations located in 14
 states and international operations located in Australia, China, Czech
 Republic, England, Germany and Singapore.
     For more information on Chart Industries, Inc., visit the Company's home
 page web site at www.chart-ind.com .
 
                             CHART INDUSTRIES, INC.
                   QUARTERLY SEGMENT INFORMATION (UNAUDITED)
                            LAST FIVE-QUARTER TREND
 
                          2000    2000   2000    2000    2001
                          First   Second Third   Fourth    First
                          Quarter                                  Quarter
 Quarter                                                 Quarter  Quarter
 
                                         (Dollars in thousands)
 
 
 
     Sales
       Applied Technologies  $29,518    $33,855    $35,409   $38,170   $34,124
 
       Distribution & Storage
         Equipment            32,208     35,792     36,166    33,763    33,579
       Process Systems &
         Equipment             7,266      9,277     16,437    17,839    21,329
         Total               $68,992    $78,924    $88,012   $89,772   $89,032
 
     Gross Profit
       Applied Technologies  $11,999    $13,454    $14,391   $14,606   $13,479
       Distribution & Storage
         Equipment             7,090      8,088      7,890     6,243     7,603
       Process Systems &
         Equipment               671      2,111      4,670     4,816     5,987
         Total               $19,760    $23,653    $26,951   $25,665   $27,069
 
     Gross Profit Margin
       Applied Technologies     40.6%      39.7%      40.6%     38.3%     39.5%
       Distribution & Storage
         Equipment              22.0%      22.6%      21.8%     18.5%     22.6%
       Process Systems &
         Equipment               9.2%      22.8%      28.4%     27.0%     28.1%
         Total                  28.6%      30.0%      30.6%     28.6%     30.4%
 
     Orders
       Applied Technologies  $31,907    $35,620    $37,010   $43,722   $29,822
       Distribution & Storage
         Equipment            41,279     35,070     45,769    32,638    32,881
       Process Systems &
         Equipment             7,270     30,472     31,889     8,518    10,297
         Total               $80,456   $101,162   $114,668   $84,878   $73,000
 
     Backlog
       Applied Technologies  $27,366    $28,767    $29,939   $35,205   $29,155
       Distribution & Storage
         Equipment            34,020     32,057     40,337    39,227    38,066
       Process Systems &
         Equipment             7,403     27,744     43,163    33,686    22,653
         Total               $68,789    $88,568   $113,439  $108,118   $89,874
 
 
                    CHART INDUSTRIES, INC. AND SUBSIDIARIES
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
          (Dollars and shares in thousands, except per share amounts)
 
                                                       Three Months Ended
                                                            March 31,
                                                      2001              2000
 
     Sales                                          $89,032           $68,992
     Cost of sales                                   61,963            49,232
 
     Gross profit                                    27,069            19,760
 
     Selling, general and administrative
      expense                                        17,624            13,466
     Goodwill amortization expense                    1,232             1,207
          Total                                      18,856            14,673
 
     Operating income                                 8,213             5,087
 
     Other income (expense):
         Gain on sale of assets                                           366
         Interest expense - net                      (7,125)           (6,237)
          Total                                      (7,125)           (5,871)
 
     Income (loss) before income taxes,
      minority interest and cumulative
      effect of change in accounting principle        1,088              (784)
 
     Income tax expense (benefit)                       574              (421)
 
     Income (loss) before minority
      interest and cumulative effect of
      change in accounting principle                    514              (363)
 
     Minority interest, net of taxes                     21                22
 
     Income (loss) before cumulative
      effect of change in accounting principle          493              (385)
 
     Cumulative effect of change in
      accounting principle, net of taxes                 88                 -
 
     Net income (loss)                                 $405             ($385)
 
     Net income (loss) per common share:
     Income (loss) before cumulative
      effect of change in accounting
      principle                                       $0.02            ($0.02)
     Cumulative effect of change in
      accounting principle                             0.00              0.00
     Net income (loss) per common share               $0.02            ($0.02)
 
     Net income (loss) per common share -
      assuming dilution:
     Income (loss) before cumulative
      effect of change in accounting
      principle                                       $0.02            ($0.02)
     Cumulative effect of change in
      accounting principle                             0.00              0.00
     Net income (loss) per common share -
      assuming dilution                               $0.02            ($0.02)
 
     Shares used in per share calculations           24,382            23,899
 
     Shares used in per share calculations -
      assuming dilution                              24,612            23,899
 
 
                    CHART INDUSTRIES, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                             (Dollars in thousands)
 
                                                March 31,          December 31,
     ASSETS                                        2001                 2000
 
     Current Assets
        Cash and cash equivalents             $    3,268             $   4,921
        Accounts receivable, net                  54,372                53,917
        Inventories, net                          71,432                66,987
        Other current assets                      29,711                31,006
     Total Current Assets                        158,783               156,831
 
     Property, plant and equipment, net           62,321                63,382
     Goodwill, net                               171,211               173,128
     Other assets, net                            27,139                28,148
 
     TOTAL ASSETS                               $419,454              $421,489
 
     LIABILITIES & SHAREHOLDERS' EQUITY
 
     Current Liabilities
        Accounts payable                       $  37,130             $  36,265
        Customer advances                            478                 1,790
        Billings in excess of contract
         revenue                                   2,979                 2,630
        Accrued expenses and other
         liabilities                              39,597                44,770
        Current portion of long-term debt         28,446                25,484
     Total Current Liabilities                   108,630               110,939
 
     Long-term debt                              246,868               244,386
     Other long-term liabilities                  11,073                11,320
 
     Shareholders' Equity                         52,883                54,844
 
     TOTAL LIABILITIES AND SHAREHOLDERS'
      EQUITY                                    $419,454              $421,489
 
     The balance sheet at December 31, 2000 has been derived from the audited
 financial statements at that date but does not include all of the information
 and footnotes required by generally accepted accounting principles for
 complete financial statements.
 
 
                    CHART INDUSTRIES, INC. AND SUBSIDIARIES
          CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                             (Dollars in thousands)
 
                                                        Three Months Ended
                                                             March 31,
                                                      2001              2000
     OPERATING ACTIVITIES
        Net income (loss)                           $   405           $  (385)
        Adjustments to reconcile net
         income (loss) to net cash
         (used in) provided by operating
         activities:
           Cumulative effect of change in
            accounting principle                         88
           Gain on sale of assets                                        (366)
           Depreciation and amortization              4,871             4,842
           Income from joint venture                   (219)
           Foreign currency transaction
            gain                                       (159)             (149)
           Minority interest                             21                52
           Deferred income taxes                                          388
           Contribution of stock to
            employee benefit plans                      684               681
           Increase (decrease) in cash
            resulting from changes in
            operating assets and liabilities:
                    Accounts receivable              (1,699)           10,041
                    Inventory and other
                     current assets                  (4,645)           (9,018)
                    Accounts payable and
                     other current liabilities       (3,995)            1,067
                    Billings in excess of contract
                     revenue and customer advances     (918)              864
 
        Net Cash (Used In) Provided By
         Operating Activities                        (5,566)            8,017
 
     INVESTING ACTIVITIES
        Capital expenditures                         (1,950)           (1,213)
        Proceeds from sale of assets                      -               900
        Other investing activities                      290              (692)
        Net Cash Used In Investing
         Activities                                  (1,660)           (1,005)
 
     FINANCING ACTIVITIES
        Borrowings on revolving credit
         facilities                                  28,396            33,532
        Repayments on revolving credit
         facilities                                 (19,837)          (28,791)
        Principal payments on long-term
         debt                                        (2,961)           (7,564)
        Treasury stock and stock option
         transactions                                   (77)                1
        Net Cash Provided By (Used In)
         Financing Activities                         5,521            (2,822)
 
     Net (decrease) increase in cash and
      cash equivalents                               (1,705)            4,190
     Effect of exchange rate changes on
      cash                                               52              (963)
     Cash and cash equivalents at
      beginning of period                             4,921             2,314
     CASH AND CASH EQUIVALENTS AT END OF
      PERIOD                                         $3,268           ($5,541)
 
 

SOURCE Chart Industries, Inc.
    CLEVELAND, April 30 /PRNewswire/ -- Chart Industries, Inc. (NYSE:   CTI)
 today reported financial results for its first quarter ended March 31, 2001.
 Chart reported first-quarter sales of $89.0 million and net income of $0.02
 per share.
     Sales for the first quarter of 2001 increased 29.0 percent to $89.0
 million from $69.0 million for the corresponding quarter in 2000. Net income
 was $405,000, or $0.02 per diluted share, for the first quarter of 2001
 compared with a net loss of $385,000, or $0.02 per diluted share, for the
 first quarter of 2000.
     Commenting on Chart's first-quarter results, Arthur S. Holmes, Chairman
 and Chief Executive Officer, said, "Our first-quarter operating results were
 somewhat stronger than expected due to a favorable sales mix. Although
 originally anticipated to be soft, our 2001 first-quarter sales were close to
 our strong fourth quarter of 2000.
     "Each of our three business segments produced sales growth over the same
 quarter of last year, resulting in a 29 percent increase. Our operating income
 of $8.2 million was down slightly from the fourth quarter of 2000, as
 expected, but 61 percent better than the same quarter of 2000. Net income for
 the first quarter was impacted by a non-cash interest charge of $822,000 and a
 net of tax cumulative effect charge of $88,000 related to the application and
 adoption of the new accounting rules for derivative financial instruments.
 This non-cash charge reduced net income per diluted share by $0.02.
     "Our biggest businesses saw flat to softer order intake this quarter. The
 Distribution & Storage (D&S) segment order flow continued to be stable with
 new orders at the same level as last quarter and consistent with current sales
 levels. In the Applied Technologies (AT) segment, we have experienced a slow
 down of orders for certain product lines. The depressed market conditions for
 the Process Systems & Equipment (PS&E) business have continued. In addition to
 the delayed recovery of the industrial gas market, the relatively active
 hydrocarbon processing market has not generated firm orders. These projects
 appear to be very viable but continue to delay order award dates. We have
 taken steps to reduce manpower levels and other costs for the slower product
 lines, particularly in the PS&E segment. Further reductions and consolidations
 are being studied for implementation if the recovery continues to delay.
     "Based upon our understanding of current economic conditions, we
 anticipate 2001 to have revenue growth compared with 2000, but lower gross
 margins due to the anticipated sales mix and lower pricing in the PS&E
 segment. The current trend of lower interest rates will be beneficial to Chart
 going forward. We also plan to use internal cash flows generated to invest in
 our leading growth businesses and hope to obtain outside financing to
 accelerate their introduction to the market. Overall, our profitability is
 expected to improve compared with 2000.
     "In summary, our challenge is to continue to improve operating performance
 under soft economic conditions and reduce debt. We are taking decisive actions
 to reduce costs, sell under-performing assets and promote growth initiatives."
     Financial highlights are as follows (all figures are in thousands of
 dollars except per-share amounts, which are based on average shares
 outstanding on a diluted basis):
 
                                 Three months ended March 31,
 
                                    2001         2000    % Increase
     Sales                        $89,032      $68,992      29.0%
     Gross profit                  27,069       19,760      37.0%
     Net income (loss)                405         (385)      N/M
     Net income (loss) per share -
       assuming dilution             0.02        (0.02)      N/M
 
     N/M = Not meaningful
 
     CONSOLIDATED FIRST-QUARTER 2001 FINANCIAL RESULTS
     Sales for the first quarter of 2001 were $89.0 million versus $69.0
 million for the first quarter of 2000, an increase of $20.0 million, or
 29.0 percent. The improvement in sales compared to the first quarter of 2000
 is largely driven by projects in the PS&E segment. Sales for the current
 quarter included heat exchangers and cold boxes for the Trinidad project,
 acoustic liquefaction equipment and several smaller hydrocarbon projects. Also
 contributing to the higher sales was the AT segment, which had increased sales
 in the LNG alternative vehicle fuel equipment, medical oxygen and biological
 storage markets compared with the first quarter of 2000.
     Gross profit for the first quarter of 2001 was $27.1 million versus
 $19.8 million for the first quarter of 2000, an increase of $7.3 million, or
 37.0 percent. Gross profit margin for the first quarter of 2001 was
 30.4 percent versus 28.6 percent for the first quarter of 2000. The increases
 in gross profit and gross profit margin occurred largely in the PS&E segment,
 where the gross margin increased from 9.2 percent in the first quarter of 2000
 to 28.1 percent in the first quarter of 2001, and gross profit increased by
 $5.3 million. These increases were the result of better volume in hydrocarbon
 equipment, particularly the Bechtel jobs for the Trinidad LNG Expansion
 project.
     Selling, general and administrative (SG&A) expense for the first quarter
 of 2001 was $17.6 million, versus $13.5 million for the first quarter of 2000.
 This increase reflected higher employee benefit costs for medical coverage and
 workers' compensation. SG&A expense as a percentage of sales increased to
 19.8 percent for the first quarter of 2001 versus 19.5 percent for the first
 quarter of 2000.
     The Company recorded $1.2 million of goodwill amortization in the first
 quarter of 2001 and 2000.
     The Company entered into two interest-rate collars covering a total of
 50 percent of the Company's term debt shortly after entering into its Credit
 Facility in 1999. The collars are intended to mitigate the risk of increasing
 interest rates by providing a cap on the base rate paid while also giving the
 counterparties to the transaction a floor on the interest rate received. Under
 newly adopted accounting rules for derivative financial instruments, the
 Company recognized a charge to earnings in the first quarter of 2001 for the
 change in fair value of the interest rate collars despite making no actual
 payments under the floor provisions. The fair value of the interest rate
 collars is determined by the expectation of future interest rates and is,
 therefore, difficult to predict. The liability relating to the collars of
 $1.0 million recorded by the Company at March 31, 2001 represents the market's
 estimate of payments above actual rates to be made over the life of the
 collars.
     Net interest expense for the first quarter of 2001, excluding the charge
 related to the interest rate collars, was $6.3 million compared with
 $6.2 million for the first quarter of 2000, reflecting higher average
 borrowings during the period. As of March 31, 2001, the Company had borrowings
 of $264.8 million under its Credit Facility and was in compliance with all
 related covenants.
     Cash used in operations for the first quarter of 2001 was $5.6 million
 compared with cash provided by operations of $8.0 million in the first quarter
 of 2000. The Company's 2001 first-quarter operating cash flow primarily
 reflects increasing inventory levels, as shipments slowed in certain product
 lines, as well as reductions in accrued expenses, including customer rebates
 and employee incentives.
     Capital expenditures for the first quarter of 2001 were $2.0 million
 compared with $1.2 million in the first quarter of 2000. The Company believes
 that $1.4 million to $2.0 million per quarter is the normal maintenance level
 for capital expenditures.
     The Company forecasts sufficient cash flow from operations and available
 borrowings to fund principal and interest payments, working capital
 requirements and capital expenditures for the current fiscal year. The Credit
 Agreement amendment, which provided relief on financial covenants, and the
 additional liquidity facility agreed upon during the fourth quarter of 2000
 expire at the end of 2001. The Company is currently evaluating its options
 related to the Credit Facility.
 
     ORDERS AND BACKLOG
     Chart's consolidated orders for the first quarter of 2001 totaled
 $73.0 million, compared with orders of $84.9 million for the fourth quarter of
 2000. Chart's consolidated firm order backlog at March 31, 2001, was
 $89.9 million, compared with $108.1 million at December 31, 2000.
     AT orders for the first quarter of 2001 totaled $29.8 million, compared
 with $43.7 million for the fourth quarter of 2000. The fourth-quarter orders
 for MRI cryostats were bundled together to cover several quarters of
 shipments, and were therefore much larger than normal. The MRI cryostats line
 has seen a slow down in requested shipments. The segment has also experienced
 a slow down in orders for cryogenic components, especially vacuum-insulated
 pipe.
     D&S orders for the first quarter of 2001 totaled $32.9 million, compared
 with $32.6 million for the fourth quarter of 2000. Orders have been lower in
 D&S over the last two quarters, reflecting some economic softness and tighter
 budgeting by our customers.
     PS&E orders for the first quarter of 2001 totaled $10.3 million, compared
 with $8.5 million in the fourth quarter of 2000. Orders in this segment are
 lower after two strong quarters in early 2000, which included large awards for
 the Trinidad LNG Expansion project. The Company has experienced continued weak
 order flow in this segment in both the industrial gas and hydrocarbon
 processing markets notwithstanding stronger quote activity in natural gas and
 petrochemical processing.
 
     GENERAL
     This release contains forward-looking statements that are subject to
 certain risks and uncertainties that could cause actual results to differ
 materially from those expressed or implied by such statements. Such risks and
 uncertainties include, but are not limited to, unanticipated slowdowns in the
 Company's major markets, the impact of competition, the effectiveness of
 operational changes expected to increase efficiency and productivity, the
 ability of the Company to satisfy covenants under its Credit Facility, the
 ability of the Company to obtain outside financing for business development
 initiatives, the extent of product liability claims asserted against the
 Company, and worldwide economic and political conditions and foreign currency
 fluctuations that may affect worldwide results of operations.
 Chart Industries, Inc. manufactures standard and custom-built industrial
 process equipment primarily for low-temperature and cryogenic applications.
 Headquartered in Cleveland, Ohio, Chart has domestic operations located in 14
 states and international operations located in Australia, China, Czech
 Republic, England, Germany and Singapore.
     For more information on Chart Industries, Inc., visit the Company's home
 page web site at www.chart-ind.com .
 
                             CHART INDUSTRIES, INC.
                   QUARTERLY SEGMENT INFORMATION (UNAUDITED)
                            LAST FIVE-QUARTER TREND
 
                          2000    2000   2000    2000    2001
                          First   Second Third   Fourth    First
                          Quarter                                  Quarter
 Quarter                                                 Quarter  Quarter
 
                                         (Dollars in thousands)
 
 
 
     Sales
       Applied Technologies  $29,518    $33,855    $35,409   $38,170   $34,124
 
       Distribution & Storage
         Equipment            32,208     35,792     36,166    33,763    33,579
       Process Systems &
         Equipment             7,266      9,277     16,437    17,839    21,329
         Total               $68,992    $78,924    $88,012   $89,772   $89,032
 
     Gross Profit
       Applied Technologies  $11,999    $13,454    $14,391   $14,606   $13,479
       Distribution & Storage
         Equipment             7,090      8,088      7,890     6,243     7,603
       Process Systems &
         Equipment               671      2,111      4,670     4,816     5,987
         Total               $19,760    $23,653    $26,951   $25,665   $27,069
 
     Gross Profit Margin
       Applied Technologies     40.6%      39.7%      40.6%     38.3%     39.5%
       Distribution & Storage
         Equipment              22.0%      22.6%      21.8%     18.5%     22.6%
       Process Systems &
         Equipment               9.2%      22.8%      28.4%     27.0%     28.1%
         Total                  28.6%      30.0%      30.6%     28.6%     30.4%
 
     Orders
       Applied Technologies  $31,907    $35,620    $37,010   $43,722   $29,822
       Distribution & Storage
         Equipment            41,279     35,070     45,769    32,638    32,881
       Process Systems &
         Equipment             7,270     30,472     31,889     8,518    10,297
         Total               $80,456   $101,162   $114,668   $84,878   $73,000
 
     Backlog
       Applied Technologies  $27,366    $28,767    $29,939   $35,205   $29,155
       Distribution & Storage
         Equipment            34,020     32,057     40,337    39,227    38,066
       Process Systems &
         Equipment             7,403     27,744     43,163    33,686    22,653
         Total               $68,789    $88,568   $113,439  $108,118   $89,874
 
 
                    CHART INDUSTRIES, INC. AND SUBSIDIARIES
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
          (Dollars and shares in thousands, except per share amounts)
 
                                                       Three Months Ended
                                                            March 31,
                                                      2001              2000
 
     Sales                                          $89,032           $68,992
     Cost of sales                                   61,963            49,232
 
     Gross profit                                    27,069            19,760
 
     Selling, general and administrative
      expense                                        17,624            13,466
     Goodwill amortization expense                    1,232             1,207
          Total                                      18,856            14,673
 
     Operating income                                 8,213             5,087
 
     Other income (expense):
         Gain on sale of assets                                           366
         Interest expense - net                      (7,125)           (6,237)
          Total                                      (7,125)           (5,871)
 
     Income (loss) before income taxes,
      minority interest and cumulative
      effect of change in accounting principle        1,088              (784)
 
     Income tax expense (benefit)                       574              (421)
 
     Income (loss) before minority
      interest and cumulative effect of
      change in accounting principle                    514              (363)
 
     Minority interest, net of taxes                     21                22
 
     Income (loss) before cumulative
      effect of change in accounting principle          493              (385)
 
     Cumulative effect of change in
      accounting principle, net of taxes                 88                 -
 
     Net income (loss)                                 $405             ($385)
 
     Net income (loss) per common share:
     Income (loss) before cumulative
      effect of change in accounting
      principle                                       $0.02            ($0.02)
     Cumulative effect of change in
      accounting principle                             0.00              0.00
     Net income (loss) per common share               $0.02            ($0.02)
 
     Net income (loss) per common share -
      assuming dilution:
     Income (loss) before cumulative
      effect of change in accounting
      principle                                       $0.02            ($0.02)
     Cumulative effect of change in
      accounting principle                             0.00              0.00
     Net income (loss) per common share -
      assuming dilution                               $0.02            ($0.02)
 
     Shares used in per share calculations           24,382            23,899
 
     Shares used in per share calculations -
      assuming dilution                              24,612            23,899
 
 
                    CHART INDUSTRIES, INC. AND SUBSIDIARIES
               CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                             (Dollars in thousands)
 
                                                March 31,          December 31,
     ASSETS                                        2001                 2000
 
     Current Assets
        Cash and cash equivalents             $    3,268             $   4,921
        Accounts receivable, net                  54,372                53,917
        Inventories, net                          71,432                66,987
        Other current assets                      29,711                31,006
     Total Current Assets                        158,783               156,831
 
     Property, plant and equipment, net           62,321                63,382
     Goodwill, net                               171,211               173,128
     Other assets, net                            27,139                28,148
 
     TOTAL ASSETS                               $419,454              $421,489
 
     LIABILITIES & SHAREHOLDERS' EQUITY
 
     Current Liabilities
        Accounts payable                       $  37,130             $  36,265
        Customer advances                            478                 1,790
        Billings in excess of contract
         revenue                                   2,979                 2,630
        Accrued expenses and other
         liabilities                              39,597                44,770
        Current portion of long-term debt         28,446                25,484
     Total Current Liabilities                   108,630               110,939
 
     Long-term debt                              246,868               244,386
     Other long-term liabilities                  11,073                11,320
 
     Shareholders' Equity                         52,883                54,844
 
     TOTAL LIABILITIES AND SHAREHOLDERS'
      EQUITY                                    $419,454              $421,489
 
     The balance sheet at December 31, 2000 has been derived from the audited
 financial statements at that date but does not include all of the information
 and footnotes required by generally accepted accounting principles for
 complete financial statements.
 
 
                    CHART INDUSTRIES, INC. AND SUBSIDIARIES
          CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                             (Dollars in thousands)
 
                                                        Three Months Ended
                                                             March 31,
                                                      2001              2000
     OPERATING ACTIVITIES
        Net income (loss)                           $   405           $  (385)
        Adjustments to reconcile net
         income (loss) to net cash
         (used in) provided by operating
         activities:
           Cumulative effect of change in
            accounting principle                         88
           Gain on sale of assets                                        (366)
           Depreciation and amortization              4,871             4,842
           Income from joint venture                   (219)
           Foreign currency transaction
            gain                                       (159)             (149)
           Minority interest                             21                52
           Deferred income taxes                                          388
           Contribution of stock to
            employee benefit plans                      684               681
           Increase (decrease) in cash
            resulting from changes in
            operating assets and liabilities:
                    Accounts receivable              (1,699)           10,041
                    Inventory and other
                     current assets                  (4,645)           (9,018)
                    Accounts payable and
                     other current liabilities       (3,995)            1,067
                    Billings in excess of contract
                     revenue and customer advances     (918)              864
 
        Net Cash (Used In) Provided By
         Operating Activities                        (5,566)            8,017
 
     INVESTING ACTIVITIES
        Capital expenditures                         (1,950)           (1,213)
        Proceeds from sale of assets                      -               900
        Other investing activities                      290              (692)
        Net Cash Used In Investing
         Activities                                  (1,660)           (1,005)
 
     FINANCING ACTIVITIES
        Borrowings on revolving credit
         facilities                                  28,396            33,532
        Repayments on revolving credit
         facilities                                 (19,837)          (28,791)
        Principal payments on long-term
         debt                                        (2,961)           (7,564)
        Treasury stock and stock option
         transactions                                   (77)                1
        Net Cash Provided By (Used In)
         Financing Activities                         5,521            (2,822)
 
     Net (decrease) increase in cash and
      cash equivalents                               (1,705)            4,190
     Effect of exchange rate changes on
      cash                                               52              (963)
     Cash and cash equivalents at
      beginning of period                             4,921             2,314
     CASH AND CASH EQUIVALENTS AT END OF
      PERIOD                                         $3,268           ($5,541)
 
 SOURCE  Chart Industries, Inc.