Phoenix, Arizona-based fabrication and construction company Schuff International, Inc. announced Monday its revenues for Q3 2010 were $66.0 million, a decrease of 38.6 percent from revenues of $107.4 million for Q3 2009, and net income for the quarter was $300,000, versus $7.8 million a year ago.
Operating income for Q3 2010 was $800,000, down 94.1 percent from $13.4 million year-over-year. The company's operating margin decreased, falling 1.2 percent from 12.5 percent in the year-ago period, due primarily to lower revenues earned during the quarter.
Revenues for the nine months ended October 3, 2010 were $214.5 million, a decrease of 37 percent from year-ago revenues of $340.3 million, and operating income for the first nine months of 2010 was $4.8 million, down 88.7 percent from $42.7 million for the first nine months of 2009.
Net income for the nine months ended October 3, 2010 was $2.5 million, versus $25.4 million a year ago.
"As we expected, continued weakness in the commercial construction sector led to lower revenues and thin margins for the third quarter of 2010," said Scott A. Schuff, president and CEO. "We're in the third year of this economic downturn that has all but halted major new commercial construction projects, especially in the Las Vegas market, which had been a major growth driver for Schuff."
"We believe that a sustained recovery will require the return of commercial construction activity in multiple regions in the US," Schuff concluded.