L.B. Foster Company
) recently announced the acquisition of privately-owned Ball
Winch Pipeline Services, LLC. Established in 2005, Ball Winch
Pipeline deals in customized coating services for steel pipe and
fabricated steel products. The value of the acquisition remained
Ball Winch Pipeline will become a part of Foster's Tubular
segment. The acquisition will enable Foster to enhance its
product offering in oil and gas, mining, water and waste water
The company has been eyeing coating expansion for quite
sometime now. Earlier this month, Foster announced the expansion
of its Birmingham, Alabama based steel pipe coating facility.
This project was undertaken to meet the increased demands from
Foster's strategic partner, AMERICAN Steel Pipe.
These strategic initiatives are likely to help the company
achieve improved results in the upcoming quarters. Their aim is
to enhance the Tubular segment, decline in which was a major
reason for the drop in earnings per share in the third quarter of
A highlight of the third quarter 2013 results has been
provided to better understand the situation. Earnings per share
in the quarter came in at 95 cents, down 5.0% year over year. The
decline can be attributed to 4.8% fall in revenues led primarily
by decline in the Rail and Tubular Products segment's sales. In
the third quarter, the Tubular segment's sales fell 45.0% year
over year to $7.4 million, as a result of lower sales in the
Foster currently carries a Zacks Rank #3 (Hold). Other stocks
worth a watch in the industry include
Companhia Siderurgica Nacional
Shiloh Industries Inc.
United States Steel Corp.
). While Companhia Siderurgica and Shiloh hold a Zacks Rank #1
(Strong Buy), United States Steel carries 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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