The rating on Chart Industries Inc. reflects the company's small size, cyclicality inherent in the industrial gas and natural gas processing market, and a somewhat uneven revenue stream in the company's energy and chemicals segment. The rating also reflects Chart's strong operating performance and significant improvement in leverage. The Garfield, Ohio-based company had $267 million of adjusted debt as of June 30, 2008. Chart manufactures equipment used for low-temperature and cryogenic applications for energy, industrial gas, and biomedical customers. The company is organized into three segments: distribution and storage (D&S), energy and chemicals (E&C), and biomedical. Chart's D&S segment (48% of 2007 sales) manufactures cryogenic storage systems used to store and transport industrial gases and hydrocarbons. The E&C segment (38%)
