September 10, 2008 - EMCOR Group (EME-NYSE) together with its subsidiaries, provides electrical and mechanical construction and facilities services worldwide. It engages in the design, integration, installation, start-up, operation, and maintenance of various electrical and mechanical systems, including electric power transmission and distribution systems, such as power cables, conduits, distribution panels, transformers, generators, uninterruptible power supply systems, and related switch gear and controls; premises electrical and lighting systems, including fixtures and controls;low-voltage systems, such as fire alarm, security, and process control systems; voice and data communications systems, including fiber-optic and low-voltage copper cabling; and roadway and transit lighting, and fiber optic lines.

EMCOR Group's facilities services include industrial maintenance and services; site-based operations and maintenance; facilities management; military base operations support services; mobile maintenance and services; installation and support for building systems; technical consulting and diagnostic services; small modification and retrofit projects; and program development, management, and maintenance for energy systems. It serves corporations, municipalities, and other government entities, as well as owners/developers and tenants of buildings, general contractors, systems suppliers, and other subcontractors. The company was founded in 1966 and is headquartered in Norwalk, Connecticut.

Almost as if it had a protective shield, EMCOR hasn't felt any of the recession most other companies are suffering. Revenues are up. Earnings improved even more. The secret: Three industries in which it does a lot of business are vital to the public: healthcare, transportation and water treatment. None of these has seen a slowdown in spending.

Earnings have been strong for some time at EME. They've grown, on average, 65% a year, over the last 5 years. Anlysts think that will slow to "only" 15% on average for the next 5. In 2005, earnings per share were 97 cents. Then they jumped to $1.37 in 2006, followed by $1.86 last year. This year analysts expect $2.59 and next year $2.74. Next quarterly report will be for the September quarter with analysts seeing 67 cents (compared to 55 cents last year). For the December period, look for 76 cents a share, a little above the 75 cents of last year.

In the second quarter of this year, EMCOR's backlog grew by 9.5%, year over year, to almost $4.67 billion. Total revenues for the company in 2007 were $5.927 billion. Analysts project $6.98 billion in sales for this year and $7.42 billion next year. More new contracts were recently signed, ranging from the commercial sector to the hospitality industry.

Two recent acquistions are adding to the top and bottom lines, Ohmstede and Redman. They specialize in the facilities services sector. In these difficult economic times, there's strong demand for this high-margin, mission critical service. Expect meaningful contributions from this group going forward, especially in contributions to operating margins.

But no company is immune from reality forever... continued