(RTTNews) - Monday, PMFG Inc. (PMFG: News ), a provider of custom engineered systems and products, reported a wider net loss for the first quarter, impacted by losses related to extinguishment of debt and change in fair value of derivative liability. Adjusted earnings per share declined from the prior year.

The Dallas, Texas-based company's first quarter net loss attributable to share holders widened to $2.14 million or $0.16 per share from $0.67 million or $0.05 per share for the same period last year.

However, on an adjusted basis, net earnings were $1.32 million or $0.09 per share, down from $2.28 million or $0.17 per share last year.

On average, four analysts polled by Thomson Reuters expected the company to report earnings per share of $0.08 for the first quarter. Analysts' estimates typically exclude special items.

Quarterly revenues slipped to $31.33 million from $43.66 million last year. Analysts expected revenues of $35.06 million for the quarter.

Commenting on the first quarter performance Peter Burlage, chief executive officer, said, "While we saw improvement in some markets in the first quarter, continued weakness in the natural gas, refining, petro chemical and power markets adversely impacted our revenues and backlog during the quarter, and we expect the economic climate to remain challenging through the first half of fiscal year 2010."

On a segmental basis, process product revenues dropped 39% to $22.7 million from $14.5 million last year and operating income rose by $1.2 million to $4.6 million from $3.4 million for the prior year period.
Environmental segment revenues for the first quarter was $8.6 million, up 32.3% from $6.5 million last year and operating income for the segment rose to $2.3 million from $1.8 million a year-ago.

PMFG, the parent company of Peerless Manufacturing Co. recorded an operating income of $2.96 million compared to $915 thousand for the prior year period, helped by a decline in operating expenses to $8.80 million from $10.36 million last year.

The company's order backlog at September 30 was $61 million, down from $73 million at June 30.

In the first quarter, PMFG completed a holding company reorganization as a result Peerless became a wholly-owned subsidiary of PMFG. The company had offered two PMFG shares for each each outstanding share of common stock of Peerless.

PMFG is currently trading at $14.07, up $0.13 or 0.93% on a volume of 0.02 million shares on Nasdaq.

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by RTT Staff Writer

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