By The Canadian Press

EDMONTON - ZCL Composites Inc. (TSX: ZCL) blamed continued weakness in the economy for cutting third-quarter profits in half.

The manufacturer and distributor of liquid storage systems posted quarterly earnings of $1.5 million or six cents per share, down from $3.1 million of 12 cents in the same 2008 quarter.

Revenue was $30.6 million, down $3 million from $33.6 million in the year-ago period.

"While our third quarter results reflect continued weakness in the economy, revenue and earnings for the quarter were up compared to the second quarter of this year due to some improvements in our core downstream petroleum business and our international operations," said Ven Cote, president and CEO.

"The third quarter results also reflect efforts to reduce costs," Cote added, calling it "an important strategic focus for ZCL."

"We believe that this focus will provide short-term benefits and, when combined with our strong growth opportunities, positions us well for when the economy turns around," he said.

ZCL shares were off one cent at $3.80 in afternoon trading on the Toronto Stock Exchange.