Conrad Industries Announces Results, Backlog
Conrad Industries Inc. on March 31 reported net income of $86,000 and earnings of 2 cents per diluted share for the 12 months ending December 31, 2019. That compares to net income of $198,000 and 4 cents per share for 2018.
The company reported a backlog of $79.2 million as of December 31, 2019, compared to $127.7 million December 31, 2018, and $111.3 million December 31, 2017.
“We entered 2020 with profitable third and fourth quarters in 2019, improved performance on contracts, better margins in new construction, a solid infrastructure market and high hopes for continued business strengthening in 2020,” said Johnny Conrad, chairman and CEO. “However, the coronavirus (COVID-19) outbreak, designated as a pandemic by the World Health Organization on March 11, 2020, has caused significant disruptions in international economies and financial and oil markets. The pandemic weakened demand for oil, and after the Organization of the Petroleum Exporting Countries and a group of oil producing nations led by Russia failed on March 6 to agree on oil production cuts, Saudi Arabia announced that it would cut oil prices and increase production, leading to an oil price war with Russia. As a result, there have been sharp declines in oil prices during 2020.”
He continued, “The COVID-19 pandemic is an unprecedented, rapidly evolving and challenging situation, and its ultimate impact on our business is uncertain. Our critical focus is to protect the health and safety of our employees, complete and deliver jobs in progress, work with our customers and potential customers and maintain our financial strength.”
Conrad concluded, “Although 2020 will be another challenging year, we continue to be optimistic about the long-term prospects of our business. We have met many challenges in the past, and we remain confident that with our talented and dedicated employees, strong balance sheet and diversified customer base we can effectively respond to changing market conditions.”
Headquartered in Morgan City, La., Conrad Industries provides both repair and new construction services at its five shipyards located in southern Louisiana and Texas.