Engineered products maker Ameron International Corp. (AMN) Friday reported a sharp decline in second-quarter profit, hurt by continued margin pressure amid low demand, weak construction markets and the softness experienced in Asia and Brazil.
Second-quarter net income was $989 thousands or $0.11 per share, compared with $9.55 million or $1.03 per share last year.
Sales totaled $134.73 million, lower than the $136.54 million recorded in the prior-year period.
According to James Marlen, Ameron's chairman, president and CEO, the company was only marginally profitable in the second quarter.
"The Company's businesses continued to suffer from margin pressure related to weak construction markets and a lull, which is expected to be temporary, in Asian fiberglass pipe markets," Marlen noted.
Among Ameron's business segments, fiberglass-composite pipe was the only one that delivered sales growth year-over-year. The business posted sales of $66.9 million in the quarter, up from $64.7 million a year ago.
The fiberglass-composite pipe segment's sales the U.S. and Europe were higher due to the continued strength of oil prices and related oilfield demand, partially offset by reduced sales in the Asian and Brazilian operations.
Hurt by the depression in residential and commercial construction markets, the infrastructure products segment had 3 percent lower sales in the second quarter.
Ameron's water transmission business also suffered sales weakness, as pipe sales fell due to low demand and the timing of projects in backlog. Wind tower business also met with lack of sales and low margins due to weak market conditions.
Going forward, Marlen said the company is improving from the slow start in the first quarter, but earnings are expected to be less than thought at the beginning of the year.
As per the full-year 2011 outlook provided on January 31, the company's adjusted earnings from continuing operations were projected to be in the range of $3.00 - $3.50 per share.
Later in May, the company lowered its full-year adjusted earnings guidance to $1.75 to $2.25 per share, citing the slow start during the first five months of 2011 and competitive pressures in certain markets served by its businesses.
Ameron, meanwhile, expects the fiberglass-composite pipe business to perform well for the balance of the year due to high energy prices. Sales into Asian marine and offshore markets are also expected to increase later in 2011.
Unforeseen events like the unrest in the Middle East and Libya are likely to restrain the group's upside potential, it added.
AMN closed Thursday's trading at $85.40, near the high end of its 52-week trading range of $55.42 - $86.03.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.