By: The Canadian Press

EDMONTON - ZCL Composites Inc. (TSX:ZCL), a Edmonton-based maker of fibreglass oil tanks and other products, says it reported sharply higher profits and revenues in the latest quarter.

ZCL said Monday it earned $3.2 million or 12 cents a share for the three months ended June 30, up from earnings of $2.1 million or eight cents in the same year-ago period.

Revenues hit a record $33 million, up 16 per cent from $28.5 million.

"The record second quarter revenue and net income resulted from increased fibreglass tank sales to downstream petroleum customers in both Canada and the US and increased product sales for tank lining installations primarily in Florida," said Ven Cote, ZCL's president and CEO.

For the six-month period, revenues rose 31 per cent to $56.8 million from $43.5 million, while net profits increased to $4.6 million from $2.2 million.

"With half the year now behind us, we are well positioned to meet our 2008 financial targets, especially considering that the second half of the year is traditionally stronger than the first half and that our backlog is higher than a year ago." Cote said.

ZCL said its strong growth for the first half of the year also reflects a full six-month contribution from the company's U.S. operations, acquired about 18 months ago.

ZCL entered the American market when it acquired Xerxes Corp. in late February, 2007.

In Monday trading on the TSX, ZCL shares rose 39 cents to $7.77, a gain of more than five per cent.

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