(RTTNews) - Ameron International Corp. (AMN: News ), a producer of water transmission lines and fabricated steel products, Thursday posted a lower third-quarter profit, hurt mainly by a 78% drop in sales from its 50%-owned steel mini-mill in Southern California, TAMCO, due to significant decline in demand for steel rebar in the western U.S. However, earnings per share came above analysts' expectationsa, and Ameron also reaffirmed its fiscal 2009 earnings outlook.

The Pasadena, California-based company's net income declined to $5.9 million or $0.65 per share from net income of $15.0 million or $1.63 per share in the third quarter of 2008.

Sales for the latest quarter declined 23% to $131.4 million from $170.1 million for the comparable period in 2008.

On average, four analysts polled by Thomson Reuters expected the company to report earnings of $0.59 per share on revenues of $142.93 million for the quarter. Analysts' estimates typically exclude special items.

Commenting on the results, Chairman James Marlen said, "The earnings decline in the quarter can be attributed equally to the decline in core businesses and to the challenging market conditions experienced by TAMCO. While TAMCO's quarterly net loss was lower than earlier in 2009, the year-over-year decline was significant."
TAMCO's sales were down 78% due to the significant decline in demand for steel rebar, and both selling prices and volumes were lower. TAMCO's net loss for the third quarter totaled $0.7 million compared with net income of $9.3 million in the third quarter of 2008.

Ameron said its nine-month net income decreased to $19.2 million or $2.09 per share from $41.1 million or $4.48 per share for the same period in 2008. Sales for the period declined 14% to $410.3 million from $479.7 million for the comparable period last year.

Looking ahead, the company reaffirmed its fiscal 2009 earnings per share guidance of between $2.50 and $2.75, including the full-year losses anticipated from TAMCO, in line with the revised forecast outlined at the end of the second quarter. Analysts expect earnings of $2.74 per share for the year.

Wednesday, AMN closed regular trading session at $81.49 on the NYSE.

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by RTT Staff Writer

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