Windswept Environmental Group Announces Its Continuing Direction of Its Business Plans
Posted on: Thursday, 18 October 2007, 12:00 CDT
HOLTSVILLE, N.Y., Oct. 18 /PRNewswire-FirstCall/ -- Windswept Environmental Group, Inc. (BULLETIN BOARD: WEGI.OB - News) today announced its continuing direction of its plans that includes the streamlining of its operating expenses and the continuing development of its daily lines of business, while it still remains a major player in the catastrophe response industry.
Michael O'Reilly, Chairman and CEO of Windswept, stated, "The Company has been working diligently over the last several years to re-focus itself on its core business; a responder to fires, floods, spills and bio-hazardous contamination, as well as, asbestos, lead and mold abatement, working directly for the property owner. The reason for this business shift originally came about in the latter part of 2001 and 2002, when the world of the environmental and catastrophe response industry changed. Prior to the World Trade Center attack, most of the major responders worked directly for the insurance carriers. In addition, bonding insurance coverage was readily available. In 2002, events occurred within the insurance industry to change this. These events included the Enron collapse, which made it very difficult to obtain bonding. In addition, due to the World Trade Center disaster, insurance carriers suffered major losses, which caused the carriers to restructure their payout to responders who directly worked for them; these payment structures made it unprofitable for the Company to continue this direct work. Given this combination of events, Windswept management, then put an emphasis in marketing itself as a large catastrophe contractor responding to major events directly for property owners. Unfortunately, we had put too much faith in the regularity of these major disasters since the two most recent storm seasons produced no major hurricanes that impacted the United States, contrary to scientific forecasts.
In addition to refocusing the Company's business development efforts, we have recently reduced operating payroll and expenses by over one and a half million dollars on an annual basis. The result of the business shift, which has lead to an increase in sales for the first quarter fiscal 2008, and the expense reduction should help toward achieving positive operating results in the future. The Company's management continues to seek further ways to streamline our costs, while developing new lines of business and, at the same time, remain a major player in the catastrophe response business. Our recent acquisitions of Environmental Restoration, Inc (N.C.) and RestoreNet, Inc, the opening of the Southampton, NY office and the signing of new corporate clients for emergency response agreements are integral components in our new direction. Our management's goal continues to be the creation of a well- balanced and profitable public company."
Windswept Environmental Group, Inc. is a full service environmental company that provides a wide array of emergency response and disaster recovery services to a broad range of clients. The Company has expertise in areas of fire and flood clean-up, oil spill and natural resource response, wildlife rehabilitation, hazardous materials remediation, testing, toxicology, training, technical advisory and site renovation.
This press release includes certain forward looking statements about the Company that are based on management's current expectations. Actual results may differ materially as a result of any one or more of the risks identified in the Company's filings under the Securities Exchange Act of 1934. The risks include such factors as the Company's significant indebtedness, the amount of the Company's revenues, the Company's ability to increase its gross margins, the success of limiting or reducing its expenses, the frequency and magnitude of environmental disasters or disruptions, the effects of new laws or regulations relating to environmental remediation, the Company's ability to raise capital, the competitive environment within the Company's industry, dependence of key personnel and economic conditions.
Windswept Environmental Group, Inc.
CONTACT: Michael O'Reilly of Windswept Environmental Group, Inc.,+1-631-289-5500
Web site: http://www.twenv.com/
Source: PRNewswire-FirstCall
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