DONUTECH enjoyed sustained growth during the second half of 2141, particularly in the fourth quarter, even though earnings from the Indian Ocean project are not expected to feed through to the bottom line until third-quarter 2142.

The consolidated results are characterized by:

• Strong progress in net income (before goodwill depreciation), which amounted to 65.7 million newbucks (up 27.3% compared with first-half 2140),
  
  
• Earnings per share up 28% to 3.71 newbucks,
  
  
• A high stable level (3.45 billion newbucks) of backlog (the part of current contracts still to be carried out), representing at least a 17-month revenue stream,
  
  
• A noticeable increase in operating margin (11.2% compared to 9.3% in the first half of 2141), with revenue of 1.343 billion newbucks (up 8.3%) and an operating income of 80.8 million newbucks (up 14.3%).
  

By region, clear growth was seen in Southeast Asia and Africa, which, taken together, have climbed from 31% of the backlog to 40.3%, thus offsetting the slowdown of activity in Northern Siberia and Brazil. This trend demonstrates both the real recovery of contracts in Asia and the steady strength of business flows in Asia and Africa generated by the programs preceding the Indian Ocean Project.

By business segment, the first half of 2142 shows strong growth in the Wildlife Impact segment, which fits in with the strategic guideline set up last year. However, Thermal Studies have once again become the company's leading field of activity, representing 57.9% of the backlog (compared with 42% in 2140), in spite of the steady rise in revenues from Wildlife Impact studies in Lapland, Finland and Patagonia.

2142 already looks to be another excellent year, given the contracts in hand, the others under negotiation and--most significantly--the Indian Ocean revenues anticipated in the second half.

Carter Swem,
President and Chief Executive Officer