Yesterday, CE FRANKLIN LTD. reported record net income of $8.8 million, $0.48 per share (basic), for the quarter ended December 31, 2008. During the fourth quarter of 2007, the company reported net income of $2.4 million, or $0.13 per share. For the full year of 2008, net income was $21.7 million, $1.19 per share (basic), an increase of 60% vs. the $13.6 million, $0.74 per share, of net income earned in 2007.
Michael West, President and CEO, commented, 2008 was the second most profitable year in the Company’s history. CE Franklin is entering a challenging business environment in 2009 with a strong balance sheet and attractive strategies to strengthen its distribution network, product lines and end use markets.
CE Franklin is focused on distributing pipe, valves, flanges, fittings, production equipment, tubular products and other general industrial supplies primarily to the Canadian oil and gas industry through its 44 branches that serve oil and gas fields of the western Canadian sedimentary basin. The company also distributes similar products to the oil sands, refining, and petrochemical industries and non-oilfield related industries such as forestry and mining.
The company acknowledged the turbulence in the global credit market and its effect on the oil and gas markets. While their customers assess the impact of these changes on their businesses and capital expenditure plans in 2009, CE Franklin expects oil and gas well completions will decline significantly to levels not seen since 2002. However, the company remains confident that it can continue to improve the profitability of its distribution network over the medium to longer term.