L.B. Foster Company
) posted adjusted earnings per share of 95 cents for
third-quarter 2013, down from $1.00 per share in the year-ago
quarter. Adjusted earnings, however, beat the Zacks Consensus
Estimate of 88 cents by 8.0%. The year-over-year decline in
adjusted earnings was due to lower sales in the Tubular products
On a GAAP-basis, Foster reported earnings per share of 95
cents, compared with 83 cents in the prior-year quarter.
: In the third quarter of 2013, total sales were $162.2 million,
down 4.8% year over year, primarily due to decline in the Rail
and Tubular Products segment's sales. Revenues also missed the
Zacks Consensus Estimate of $172.0 million.
Revenues from the
segment decreased 4.9% year over year to $105.6 million. This was
a result of softness in the concrete tie and rail distribution
businesses, partially offset by strong sales in the Allegheny
Rail Products and transit products divisions.
segment's revenues rose 7.3% year over year to $49.3 million,
driven by higher piling products and concrete building products
segment generated revenues of $7.4 million, a decline of 45.0%
year over year due to lower coated products sales.
: Adjusted gross profit margin in the quarter decreased 50 basis
points (bps) year over year to 19.3%. Selling and administrative
expenses in the quarter were recorded at $17.5 million, down from
$16.6 million in the year-ago quarter.
The Rail Products segment recorded gross profit margin of
20.5%, expanding 330 bps year over year, attributable to a
warranty charge incurred in the prior-year quarter. The
Construction Products segment's gross profit margin decreased 20
bps from the year-ago quarter to 15.4%, as a result of
unfavorable product mix. The Tubular Products segment's gross
profit margin in the reported quarter was 21.8%, falling 1,100
bps year over year, due to planned expenditures on plant
Balance Sheet/Cash Flow
: Exiting the third quarter of 2013, Foster's cash and cash
equivalents were approximately $96.0 million, compared with $94.7
million in the previous quarter. Total long-term debt balance
stood at $19,000 versus $15,000 in the preceding quarter.
For the nine months ended Sep 30, 2013, Foster's cash provided
from operations totaled $2.5 million, down from $25.3 million in
the year-ago comparable period, primarily as a result of working
capital changes. For the first nine months of 2013, capital
expenditure incurred by the company decreased to $5.6 million,
against $6.3 million in the prior-year period.
: Management expects the Tubular Products segment's sales to
continue declining while sales in the Construction Products
segment to improve in the fourth quarter of 2013. Foster predicts
capital expenditure in 2013 to be in the range of $7.0
Other Stocks to Consider
Foster currently carries a Zacks Rank #3 (Hold). Other stocks
worth considering in the industry include
Companhia Siderurgica Nacional
Shiloh Industries Inc.
United States Steel Corp.
). While Companhia Siderurgica andShiloh Industries carry a Zacks
Rank #1 (Strong Buy), United States Steel holds a Zacks Rank #2
FOSTER LB CO (FSTR): Free Stock Analysis
SHILOH INDS INC (SHLO): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis
UTD STATES STL (X): Free Stock Analysis
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