First quarter 2010 net sales decreased 19.3 percent to $82.0 million compared to $101.6 million in the prior year quarter. Gross profit margin was 14.7 percent, an increase of 120 basis points from the prior year quarter principally due to a $1.6 million ($0.10 per diluted share) warranty charge recorded in the first quarter of 2009 related to certain concrete ties that failed in track.
"While sales were down across all segments in the first quarter of 2010, we were pleased with the business booked during the quarter and our backlog was substantially higher at the end of the first quarter than it was a year ago," stated Stan Hasselbusch, President and Chief Executive Officer. "While business activity continues to be inconsistent, especially in the industrial markets, we have seen a general strengthening in activity in most of our businesses."