Exhibit 99.1
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NEWS RELEASE
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FOR IMMEDIATE RELEASE
ENGlobal Corporation
CONTACT: Natalie S. Hairston
(281) 878-1000
ir@ENGlobal.com
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ENGLOBAL REPORTS PRELIMINARY THIRD QUARTER ESTIMATES
HOUSTON, TX, October 21, 2008 - ENGlobal (NASDAQ: ENG), a leading provider of
engineering and related project services, today reported its estimated earnings
for the quarter ended September 30, 2008. ENGlobal expects that its third
quarter 2008 revenue will be approximately $123.2 million, compared to $96.8
million reported in the third quarter 2007. The Company expects to report third
quarter 2008 earnings per diluted share in the range of $0.11 to $0.13, compared
to $0.15 per diluted share for the prior year period.
Based on ENGlobal's current assessment, the following factors are expected to
impact to its third quarter results:
1. Lost billing revenue and gross margin related to Hurricanes Ike and
Gustav.
2. Higher labor burden resulting from improved employee benefits.
3. Project overruns and reversals in the Company's Automation segment.
4. Higher overhead costs in the Company's Construction segment, together
with a decreased level of construction management activity.
William A. Coskey, P.E., ENGlobal's Chairman and Chief Executive Officer, said,
"We are disappointed that a number of factors will cause our third quarter
results to fall short of expectations. However, based on recent project awards,
including over $7.5 million directly attributable to our clients' hurricane
recovery efforts, we continue to be encouraged by our business prospects and
opportunities."
ENGlobal's third quarter 2008 operating results will be released before open of
the U.S. financial markets on November 6, 2008. The Company will hold a
conference call to discuss this information on November 6 at 11:00 a.m. EST.
About ENGlobal
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ENGlobal provides engineering, construction, automation, land and regulatory
services principally to the energy sector throughout the United States and
internationally. The Company has over 2,900 employees in 22 offices and occupies
over 500,000 square feet of office and fabrication space. ENGlobal has been
named one of the fastest growing engineering firms in the United States and
Canada by ZweigWhite in each of the last five years. Further information about
the Company and its businesses is available at www.ENGlobal.com.
~more~
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654 N. Sam Houston Parkway E. * Suite 400 * Houston, Texas 77060-5914
www.ENGlobal.com
ENGlobal Press Release
October 21, 2008
Page 2
Safe Harbor for Forward-Looking Statements
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The statements above regarding the Company's expectations regarding third
quarter financial results and certain other matters discussed in this press
release may constitute forward-looking statements within the meaning of the
federal securities laws and are subject to risks and uncertainties including,
but not limited to; (1) the Company's ability to achieve its business strategy
while effectively managing costs and expenses; (2) the Company's ability to
successfully and profitably integrate acquisitions; (3) the continued strong
performance of the energy sector; and (4) the actual impact from Hurricanes Ike
and Gustav and the timing of that impact. ENGlobal's independent auditors have
not reviewed the forecasted financial results for the third quarter 2008.
Accordingly, they assume no responsibility for the accuracy or presentation of
this information. Actual results and the timing of certain events could differ
materially from those projected in or contemplated by the forward-looking
statements due to a number of factors detailed from time to time in ENGlobal's
filings with the Securities and Exchange Commission. In addition, reference is
hereby made to cautionary statements set forth in the Company's most recent
reports on Form 10-K and 10-Q, and other SEC filings. Also, the information
contained in this press release is subject to the risk factors identified in the
Company's most recent Form 10-K.
Click here to join ENGlobal's email list:
http://www.b2i.us/irpass.asp?BzID=702&to=ea&s=0.
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