MRCR Moro Corporation (PK)

Moro Corporation (OTC: MRCR) today announced that financial results for the three and six months ended June 30, 2010 were as follows:

        Three Months Ended Six Months Ended June 30 June 30

2010

   

2009

2010

   

2009

  Revenue $ 13,149,000 $ 16,022,000 $ 23,125,000 $ 31,608,000 Net income $ 236,000 $ 438,000 $ (62,000 ) $ 501,000 Earnings per share $ .04 $ .07 $ (.01 ) $ .08

Average number of common shares outstanding

6,369,643 6,369,643 6,369,643 6,369,643  

Revenue for the second quarter of 2010 of $13,149,000 was 18% less than for the year-ago period. The Construction Materials Division (mainly concrete reinforcing steel) represented 41% of total revenue and the Mechanical Contracting Division (HVAC products and services) accounted for 59% of total revenue for the second quarter.

Net income for the second quarter was $236,000, compared with $438,000 for the year-ago period. The majority of the net income decline was attributable to the Construction Materials Division which experienced lower profit margins due to competitive pricing pressures related to the continued adverse economic climate. However, each of the operating units was profitable during the second quarter of 2010.

Revenue for the first six months of 2010 of $23,125,000 was 27% below revenue for the year-ago period. The Construction Materials Division represented 37% of total revenue and the Mechanical Contracting Division accounted for 63% of total revenue for the six-month period.

There was a net loss for the 2010 six month period of $62,000 compared with net income of $501,000 for the year-ago period. Most of the net income decline was attributable to the Construction Materials Division which experienced substantially lower revenue along with decreased profit margins due to competitive pricing pressures related to the continued adverse economic climate.

David W. Menard, President and CEO, commented: “There is a great deal of uncertainty in the construction markets served by Moro due to the current adverse economic climate. This is proving to be a tough year for Moro due to a reduced demand for our products and services accompanied by lower profit margins due to increased competitive pricing pressures. Fortunately, we have a strong financial position. Moro has also signed a non-binding letter of intent to purchase the operating assets of a profitable commercial electrical contracting business, which the company hopes to close during the third quarter of 2010.”

Moro is a financially strong multi-location and multi-subsidiary construction products and services company engaged in the (a) fabrication of concrete reinforcing steel (rebar), sheet metal (duct work), miscellaneous steel (stairs and railings), and process piping, (b) distribution of construction steel, miscellaneous steel and construction accessories, and (c) mechanical contracting services (HVAC, plumbing, and piping).

For more information, contact David W. Menard, President and CEO, at 484-367-0300, fax 484-367-0305.

Statement under the Private Securities Litigation Reform Act: This press release contains certain forward-looking statements regarding, among other things, the anticipated profitability and continued growth of the company. Those statements are subject to known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from those contemplated by the statements, including the continued ability of the company to generate operating profits, the lack of continued demand for the company’s products , the availability of governmental funding for its projects, the ability to locate and acquire suitable acquisition opportunities, and if acquired, the failure of any such businesses to generate operating profits.