L.B. Foster reported second-quarter net income of $7.3 million, or 71 cents per share, comparing favorably with a net loss of $2 million, or 20 cents per share, in the second quarter of 2012.
But Wall Street analysts apparently expected better still, anticipating earnings of 97 cents per share for the quarter. Shares of L.B. Foster were down 13% in midafternoon Nasdaq trading Tuesday.
Net sales of $150 million were down 8.1% from second-quarter 2012 net sales of $163 million.
The company, releasing results Tuesday, Aug. 6, attributed the results in part to a 10.3% decline in Rail segment sales and an 8.7% fallout in Construction segment sales.
Income from continuing operations for the quarter of $7.3 million, or 71 cents per diluted share, compared favorably with a loss from continuing operations of $3.3 million, or 33 cents per diluted share, in the second quarter of 2012. Excluding concrete tie charges from the prior year period, second-quarter earnings from continuing operations would have been $8.7 million, or 86 cents per diluted share, the company said.
Said President and CEO Robert P. Bauer, "This year continues to unfold in a very different way than 2012. Our strong first quarter, coupled with our lower second quarter, has resulted in a first half with sales marginally ahead of last year, and gross profit and pre-tax profit margins 25 basis points better than prior year first half results on an adjusted basis.
"While year-to-date earnings per share are below our expectations, EPS did grow 3.5% on an adjusted basis to $1.19 for the first half," Bauer said.