Pittsburgh, Pennsylvania-based L.B. Foster Company, a leading manufacturer, fabricator, and distributor of rail products and services announced Tuesday improved Q3 2010 results. L.B. Foster reported that its Q3 2010 net income increased 6 percent to $6.5 million compared to $6.1 million for the same quarter last year.
Net sales increased 28.3 percent to $125.6 million compared to $97.9 million in the prior year quarter.
"Sales and profitability were up across all segments in the third quarter of 2010 and...while business activity continues to be inconsistent, especially in the industrial and heavy civil markets, we continue to see a moderate strengthening in most of our businesses," stated Stan Hasselbusch, President and Chief CEO, as he added that "bookings for the quarter were $124.8 million compared to $114.3 million last year."
For the nine months ended September 30, 2010, L.B. Foster reported net income of $14.3 million compared to net income of $11.8 million for the first nine month of 2009.
Net sales for the first nine months of 2010 increased 9.4 percent to $327.1 million compared to $298.8 million in the prior year. Gross profit margin was 16 percent, up 120 basis points from 2009.
Cash generated from operations was approximately $15.9 million for the third quarter compared to $7.2 million for the same period last year. Cash generated from operations for the first nine months of 2010 was approximately $32.7 million compared to $18.0 million in 2009.
"We have already generated cash flow significantly in excess of our expected capital expenditures and debt service for 2010. As we operate our business through 2010 and into 2011, we expect to continue to be challenged by a weak economy and a highly competitive business environment and as such, we will review measures to win new sales opportunities, control costs and improve our operational processes while we continue to look for opportunities to leverage our strong balance sheet," concluded Hasselbusch.