Fuel Tech cuts 2008 outlook on contract delays

Fuel Tech Inc. cut its 2008 profit and revenue forecasts Monday, saying the global financial crisis lead to weaker sales of its air pollution control systems.

The company said it now expects a profit of 15 to 17 cents per share, on $79 million to $81 million in revenue. Earlier in the year, Fuel Tech called for a profit of 33 cents to 39 cents per share, excluding stock-based compensation costs, on $88 million to $93 million in revenue.

According to Thomson Reuters, analysts expected a profit of 30 cents per share on $88.3 million in revenue.

In afternoon trading, its stock lost $1.87, or 16.4 percent, to $9.55.

Fuel Tech said it received fewer air pollution control contracts than it expected in the third quarter, as utilities examined their spending and held back on awarding contracts after the financial crisis intensified. The company said it is cautiously optimistic that business will improve because it is being asked for price quotes, particularly in China.

That could lead to delayed orders being made later in 2008 and early in 2009, the company said.

Fuel Tech earned $2.1 million, or 9 cents per share, in the three months ended Sept. 30, up from $900,000, or 4 cents a share, a year earlier. Revenue rose 55 percent to $23.7 million from $15.2 million.

The results were in line with analyst expectations. Thomson Reuters said analysts were looking for an average profit of 9 cents per share on $23.6 million in revenue.