Revenues for its United States electrical construction and facilities services segment for 1999 increased by $104.5 million, or 11.8%, compared to 1998. Revenues from companies acquired during 1999 and 1998 contributed $23.0 million of the increase, whereas $81.5 million, or a 9.2% increase, was due to growth from the balance of EMCOR's United States electrical construction and facilities services businesses. The growth in revenues from the balance of EMCOR's operations was due to continuing favorable market conditions for business units located in the Eastern and Midwest United States, partially offset by anticipated decreases in certain business activities in the Western United States. The favorable market conditions were due to increased renovation projects in these locations, as well as increased new construction spending. The decreased business activities in the Western United States was primarily attributable to reduced new construction activity on casinos in Las Vegas. The $143.6 million, or 19.3%, increase in 1998 revenues compared to 1997, was attributable to $19.4 million of revenues from companies acquired during 1998 as well as from growth from the balance of other business units located primarily in the Eastern and Midwestern United States. In particular, 1998 revenues were favorably impacted, compared to 1997, by increased interior renovation projects in New York City commercial office buildings associated with corporate relocations.

United States mechanical construction and facilities services revenues increased $454.1 million, or 75.7%. Revenues from companies acquired during 1999 and 1998 contributed $377.5 million, whereas $76.6 million of the increase in revenues, or a 12.8% increase, was due to growth from the balance of EMCOR's United States mechanical construction and facilities services. Eastern and Western United States based operations were the major contributors to the increase in revenue due to the continued strong renovation market in New York City and strengthened new construction markets in Denver and Salt Lake City. A $22.0 million, or 3.8%, increase in revenues for 1998 compared to 1997 was attributable to $38.2 million of revenues related to 1998 acquisitions offset by the anticipated reduction of certain business activities in California.

United States other revenues increased by $81.8 million for 1999 compared to 1998. The primary source of the increase in 1999 was revenues of $75.6 million from companies acquired during 1999 and 1998. Revenues from the balance of EMCOR's operations increased by $6.2 million, or 42.7%, compared with 1998 revenues. Revenues for 1998 increased by $11.4 million versus 1997, primarily attributable to revenues of $7.3 million from companies acquired during 1998 and increased revenues from the balance of EMCOR's United States other operations.

Revenues of Canada construction and facilities services decreased by $5.2 million, or 2.6%, for 1999 as compared to 1998 revenues. The decrease in revenues for 1999 compared with 1998 was primarily due to a reduced level of activities in Eastern Canada and from delays during 1999 in the commencement of certain projects caused by delays in the bidding process for certain jobs. The $22.9 million, or 12.8%, increase in revenues for 1998 compared with 1997 was attributable to the increase in construction and facility services activities in the Eastern Canadian markets.

United Kingdom construction and facilities services revenues increased $60.4 million, or 12.2%, for 1999 compared to 1998 revenues principally due to continued growth in selected construction and facilities markets, combined with an increase in revenues associated with two major projects. The $85.8 million, or
21.0%, increase in 1998 revenues compared with 1997 revenues was attributable to growth in the construction and facilities services market, primarily in the Southern United Kingdom.

Revenues of Other International decreased for 1999 to $0.7 million, compared to $12.6 million for 1998 and $38.8 million for 1997. The decline in revenues for 1999 compared to 1998 was due to the completion of several large projects in the Middle East and Asia markets during 1998. The decline for 1998 compared to 1997 was due to a reduction of the level of ownership in, and related share of revenues from, certain joint venture activities. EMCOR continues to pursue new business selectively in these markets.

Back
Next