L. B. Foster Company Reports First Quarter Results

Apr 30, 2001, 01:00 ET from L. B. Foster Company

    PITTSBURGH, April 30 /PRNewswire/ -- L. B. Foster Company (Nasdaq:   FSTR)
 recorded a first quarter net loss from continuing operations of $1.865 million
 ($0.20 per share) in 2001 versus net income from continuing operations of
 $0.328 million ($0.04 per diluted share) in 2000.  Revenues for the first
 quarter were $56.1 million compared to $59.5 million for the 2000 first
 quarter.
     The current year first quarter results include nonrecurring pretax charges
 of $1.356 million ($0.09 per share), related to the Company's previously
 announced plan to improve its financial performance by consolidating sales and
 plant operations.  The prior year first quarter results included nonrecurring
 pretax charges of $503 thousand ($0.03 per share).  The total nonrecurring
 pretax charges associated with the shutdown and relocation of Company
 operations recorded to date were $2.705 million with a current planned
 estimate of $3.2 million.
     "The rail segment quarterly performance reflects the downturn in the rail
 supply industry as a result of reduced capital spending by the Class I
 railroads, which continues to adversely impact shipments and margins.  First
 quarter rail order entry, particularly for transit projects, increased
 significantly over the prior year although margins continue to reflect the
 difficult competitive environment.  As a result, we anticipate continuing
 weakness in the Rail market through 2001, although our current strong backlog
 should result in improving profitability in future quarters.
     "Uncertainty regarding the resumption of spending by the Class I railroads
 was a critical factor in the decision to further consolidate or close
 operations.  Marginal businesses are not supportable in this environment and
 the Company must concentrate on streamlining all elements of its business, as
 well as emphasizing working capital management and the generation of free cash
 flow.
     "The construction segment first quarter results were adversely impacted by
 continued pricing weakness in the bearing pile market which began in the
 fourth quarter.  On a more positive note, the long awaited startup of sheet
 piling production at TXI Chaparral's Virginia mill commenced in late March
 with initial production quantities anticipated during the second quarter.  We
 expect to see our Piling Products division's revenues and profitability
 improve steadily during the remainder of the current year.
     "Looking at the second quarter, we expect normal seasonality and the
 initial availability of sheet piling to enable the Company to return to
 profitability despite difficult market conditions," said Lee B. Foster,
 Chairman and Chief Executive Officer.
     L. B. Foster Company, headquartered in Pittsburgh, PA is a manufacturer,
 fabricator and distributor of rail, construction, and tubular products.
 
     The Company wishes to caution readers that various factors could cause the
 actual results of the Company to differ materially from those indicated by
 forward-looking statements in news releases, and other communications,
 including oral statements, made from time to time by representatives of the
 Company.  Matters discussed in such communications are forward-looking
 statements that involve risks and uncertainties.
 
 
                        CONDENSED STATEMENTS OF CONSOLIDATED INCOME
                           L. B. FOSTER COMPANY AND SUBSIDIARIES
                          (In Thousands, Except Per Share Amounts)
 
                                                    Three Months Ended
                                                         March 31,
                                              2001                      2000
                                                        (Unaudited)
             NET SALES                       $56,090                   $59,489
 
             COSTS AND EXPENSES:
              Cost of goods sold              50,750                    51,178
              Selling and administrative
                expenses                       7,755                     7,408
              Interest expense                   961                       938
              Other (income) expense            (214)                     (581)
                                              59,252                    58,943
 
             INCOME (LOSS) FROM CONTINUING
              OPERATIONS,
              BEFORE INCOME TAXES             (3,162)                      546
 
             INCOME TAXES                     (1,297)                      218
 
             INCOME (LOSS) FROM CONTINUING
              OPERATIONS                      (1,865)                      328
 
             GAIN (LOSS) FROM DISCONTINUED
              OPERATIONS, NET OF TAXES             0                      (176)
 
             NET INCOME (LOSS)               ($1,865)                     $152
 
             BASIC EARNINGS (LOSS) PER SHARE
              FROM:
               CONTINUING OPERATIONS          ($0.20)                    $0.04
               DISCONTINUED OPERATIONS          0.00                     (0.02)
             NET BASIC EARNINGS (LOSS) PER
              SHARE                           ($0.20)                    $0.02
 
             DILUTED EARNINGS (LOSS) PER
              SHARE FROM:
               CONTINUING OPERATIONS          ($0.20)                    $0.04
               DISCONTINUED OPERATIONS          0.00                     (0.02)
             NET DILUTED EARNINGS (LOSS) PER
              SHARE                           ($0.20)                    $0.02
 
             AVERAGE NUMBER OF COMMON
             SHARES OUTSTANDING - BASIC        9,416                     9,561
 
             AVERAGE NUMBER OF COMMON
             SHARES OUTSTANDING - DILUTED      9,459                     9,683
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X64954348
 
 

SOURCE L. B. Foster Company
    PITTSBURGH, April 30 /PRNewswire/ -- L. B. Foster Company (Nasdaq:   FSTR)
 recorded a first quarter net loss from continuing operations of $1.865 million
 ($0.20 per share) in 2001 versus net income from continuing operations of
 $0.328 million ($0.04 per diluted share) in 2000.  Revenues for the first
 quarter were $56.1 million compared to $59.5 million for the 2000 first
 quarter.
     The current year first quarter results include nonrecurring pretax charges
 of $1.356 million ($0.09 per share), related to the Company's previously
 announced plan to improve its financial performance by consolidating sales and
 plant operations.  The prior year first quarter results included nonrecurring
 pretax charges of $503 thousand ($0.03 per share).  The total nonrecurring
 pretax charges associated with the shutdown and relocation of Company
 operations recorded to date were $2.705 million with a current planned
 estimate of $3.2 million.
     "The rail segment quarterly performance reflects the downturn in the rail
 supply industry as a result of reduced capital spending by the Class I
 railroads, which continues to adversely impact shipments and margins.  First
 quarter rail order entry, particularly for transit projects, increased
 significantly over the prior year although margins continue to reflect the
 difficult competitive environment.  As a result, we anticipate continuing
 weakness in the Rail market through 2001, although our current strong backlog
 should result in improving profitability in future quarters.
     "Uncertainty regarding the resumption of spending by the Class I railroads
 was a critical factor in the decision to further consolidate or close
 operations.  Marginal businesses are not supportable in this environment and
 the Company must concentrate on streamlining all elements of its business, as
 well as emphasizing working capital management and the generation of free cash
 flow.
     "The construction segment first quarter results were adversely impacted by
 continued pricing weakness in the bearing pile market which began in the
 fourth quarter.  On a more positive note, the long awaited startup of sheet
 piling production at TXI Chaparral's Virginia mill commenced in late March
 with initial production quantities anticipated during the second quarter.  We
 expect to see our Piling Products division's revenues and profitability
 improve steadily during the remainder of the current year.
     "Looking at the second quarter, we expect normal seasonality and the
 initial availability of sheet piling to enable the Company to return to
 profitability despite difficult market conditions," said Lee B. Foster,
 Chairman and Chief Executive Officer.
     L. B. Foster Company, headquartered in Pittsburgh, PA is a manufacturer,
 fabricator and distributor of rail, construction, and tubular products.
 
     The Company wishes to caution readers that various factors could cause the
 actual results of the Company to differ materially from those indicated by
 forward-looking statements in news releases, and other communications,
 including oral statements, made from time to time by representatives of the
 Company.  Matters discussed in such communications are forward-looking
 statements that involve risks and uncertainties.
 
 
                        CONDENSED STATEMENTS OF CONSOLIDATED INCOME
                           L. B. FOSTER COMPANY AND SUBSIDIARIES
                          (In Thousands, Except Per Share Amounts)
 
                                                    Three Months Ended
                                                         March 31,
                                              2001                      2000
                                                        (Unaudited)
             NET SALES                       $56,090                   $59,489
 
             COSTS AND EXPENSES:
              Cost of goods sold              50,750                    51,178
              Selling and administrative
                expenses                       7,755                     7,408
              Interest expense                   961                       938
              Other (income) expense            (214)                     (581)
                                              59,252                    58,943
 
             INCOME (LOSS) FROM CONTINUING
              OPERATIONS,
              BEFORE INCOME TAXES             (3,162)                      546
 
             INCOME TAXES                     (1,297)                      218
 
             INCOME (LOSS) FROM CONTINUING
              OPERATIONS                      (1,865)                      328
 
             GAIN (LOSS) FROM DISCONTINUED
              OPERATIONS, NET OF TAXES             0                      (176)
 
             NET INCOME (LOSS)               ($1,865)                     $152
 
             BASIC EARNINGS (LOSS) PER SHARE
              FROM:
               CONTINUING OPERATIONS          ($0.20)                    $0.04
               DISCONTINUED OPERATIONS          0.00                     (0.02)
             NET BASIC EARNINGS (LOSS) PER
              SHARE                           ($0.20)                    $0.02
 
             DILUTED EARNINGS (LOSS) PER
              SHARE FROM:
               CONTINUING OPERATIONS          ($0.20)                    $0.04
               DISCONTINUED OPERATIONS          0.00                     (0.02)
             NET DILUTED EARNINGS (LOSS) PER
              SHARE                           ($0.20)                    $0.02
 
             AVERAGE NUMBER OF COMMON
             SHARES OUTSTANDING - BASIC        9,416                     9,561
 
             AVERAGE NUMBER OF COMMON
             SHARES OUTSTANDING - DILUTED      9,459                     9,683
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X64954348
 
 SOURCE  L. B. Foster Company