Friday, January 29, 2010

L. B. Foster earnings falter in weak market

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L.B. Foster Co. today reported net income of $3.9 million or $0.38 per share in the fourth quarter of 2009, compared to net income of $5.7 million or $0.55 per share in the fourth quarter of 2008.

Fourth quarter 2009  sales declined 31.8% to $98.0 million compared to the same quarter last ear. Selling and administrative expenses were down $2.8 million or 23.9%.

"All of our segments posted significant declines in net sales for the fourth quarter; however, cost controls and pay for performance incentive plans mitigated the negative impact to income. While we have won several large orders this quarter, business activity continues to be inconsistent in our Rail and Construction businesses and very weak in our Tubular divisions," said Stan Hasselbusch, President and CEO.

"Bookings for the quarter were $114.7 million compared to $99.5 million last year, a 15.3% increase while year-to-date bookings were down 15.9%," said Hasselbusch. "Backlog was $172.7 million, an increase of 30.2% over the prior year; however, the gross margins associated with that backlog are lower than the prior year due to decreased pricing and an increased competitive environment across all product lines."

Hasselbusch also commented:: "We won several attractive awards in 2009 that were related to the federal stimulus legislation, primarily in our transit and precast concrete building businesses. While we expect a significant portion of those 2009 awards to be reflected as sales in 2010, we also anticipate that the volume of new stimulus-related opportunities will slow in 2010."

For the 12 months ended December 31, 2009, L.B. Foster reported net income of $15.7 million or $1.53 per d share compared to net income of $27.7 million or $2.57 per  share in 2008.