President's Message (Spring 2003)
Friends:
America’s war with Iraq is impacting business and industry at every level. At least three KCI employee-owners have been called to join their reserve units, and other employees’ relatives or friends are deployed in harm’s way. We ask that you please keep them and all of our armed forces in your thoughts and prayers.
On the business front, KCI’s public sector clients are competing for a dwindling amount of tax revenues, which has delayed or cancelled some projects. The snowy February weather and lost workdays in the northeast further impacted operations in the first quarter. Fortunately for the company, KCI’s diversity—both in terms of services and geography—will help us meet the challenges associated with any economic slowdown that may lie ahead.
KCI’s new subsidiary, KCI Construction Services, LLC, is providing negotiated and at-risk construction management project delivery services in the private sector, while KCI Technologies continues its expansion in Ohio and the Southeast, adding personnel and capabilities in Florida and Georgia.
On the political front, the engineering community in Maryland won a victory in early April, when a proposed bill, requiring the top two qualified firms to compete for projects based on the lowest bid, died in committee. Testimony before the Maryland legislature contributed toward the bill’s demise and serves as a reminder of the importance of participating in the political process and staying in touch with lawmakers.
Finally, I’m pleased to report that the value of KCI stock has increased for the eighth straight year and has outperformed the S&P 500 market index by more than 360% since 1988, the year KCI became employee-owned. As our 15th anniversary approaches in December, we thank our clients, colleagues, and friends for your loyalty and promise to continue sharpening our technical expertise to better meet your needs.
Terry F. Neimeyer
President, Chief Executive Officer
& Chairman of the Board
Other KCI Companies
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