Pasadena, California-based steel fabricator and producer of water transmission lines reported Friday net income of $1 million in Q2 2011 (ended May 29, 2011) compared to a net income of $9.5 million in Q2 2010. For the year-to-date, Ameron reported a net loss of $3.3 million compared to a net income of $10.6 million for the first six months of 2010.
Ameron's Infrastructure Products Group had lower sales and segment income in Q2 2011, compared to the same period in 2010, due to depressed residential and commercial construction markets. The Group's sales declined $.8 million, or 3 percent; segment income declined $1.6 million, or about 70 percent.
Both the water pipe and the wind tower businesses were unprofitable in Q2 2011 as operations were not able to overcome the lack of sales and low margins due to weak market conditions. Pipe operations lost $1.2 million in Q2 2011, compared to earning $1.3 million in the second quarter of 2010; wind tower operations lost $1.0 million in both the second quarters of 2011 and 2010.
SteelOrbis previously reported that Houston, Texas-based National Oilwell Varco will acquire Ameron in a deal valued at $722 million.