Pittsburgh, Pennsylvania-based L.B. Foster Company, a manufacturer, fabricator, and distributor of products and services for rail, construction, energy and utility markets, reported Tuesday net income of $3.4 million in Q1 2012, up substantially from the $0.7 million income in Q1 2011. Q1 net sales of $118.5 million increased 1.2 percent year-on-year due to a 7.2 percent increase in rail segment sales and a 61.7 percent surge in tubular segment sales; construction segment sales declined by 14.4 percent.
The increase in rail segment was driven by strong sales in L.B. Foster's new rail business and the insulated joint product line. Meanwhile, tubular product sales were very strong in Q1 as end markets in oil and gas and water well applications are driven by energy and agriculture. The growth in these two segments should continue in 2012, but at a lower rate than in Q1.
Conversely, construction sales declined 14.4 percent in the quarter. This comparison is an improvement from the Q4 year-over-year rate and continues to be affected most by non-residential construction.