Ameron International Corp., a supplier of industrial paints and pipes, tumbled as much as 33 percent in U.S. trading after third-quarter profit dropped more than analysts predicted, citing ``difficult market and economic conditions.''
Net income declined to $15 million, or $1.63 a share, from $21.1 million, or $2.32, a year earlier, the Pasadena, California-based company said in a statement today. Per-share earnings excluding some costs were $1.63, missing the $1.98 estimate of D.A. Davidson & Co. analyst Brent Thielmanand $1.83 estimate of Boenning & Scattergood Inc. analyst Ryan Connors.
Losses in the company's water transmission group widened by $2.3 million because of declining construction and municipal funding constraints in the principal markets of California, Nevada and Arizona, Ameron said. Profit fell in the infrastructure products unit, where a slowdown in U.S. home construction led to lower demand for decorative concrete poles for residential lighting, while pricing competition and fuel costs in Hawaii lowered margins.
``The company's construction and water pipe markets are expected to remain challenged and fourth quarter results are not expected to be as high as third-quarter results,'' Chief Executive Officer James Marlen said in the statement.
Sales rose 3 percent to $170.1 million, short of the $182.5 million average of estimates by Thielman and Connors.
Ameron fell $32.46, or 30 percent, to $75.68 at 12:16 p.m. in New York Stock Exchange composite trading. Earlier, shares slid to $72.20, for the biggest intraday decline since the company began trading in July 1980. The stock gained 17 percent this year before today.
(bloomberg)
Net income declined to $15 million, or $1.63 a share, from $21.1 million, or $2.32, a year earlier, the Pasadena, California-based company said in a statement today. Per-share earnings excluding some costs were $1.63, missing the $1.98 estimate of D.A. Davidson & Co. analyst Brent Thielmanand $1.83 estimate of Boenning & Scattergood Inc. analyst Ryan Connors.
Losses in the company's water transmission group widened by $2.3 million because of declining construction and municipal funding constraints in the principal markets of California, Nevada and Arizona, Ameron said. Profit fell in the infrastructure products unit, where a slowdown in U.S. home construction led to lower demand for decorative concrete poles for residential lighting, while pricing competition and fuel costs in Hawaii lowered margins.
``The company's construction and water pipe markets are expected to remain challenged and fourth quarter results are not expected to be as high as third-quarter results,'' Chief Executive Officer James Marlen said in the statement.
Sales rose 3 percent to $170.1 million, short of the $182.5 million average of estimates by Thielman and Connors.
Ameron fell $32.46, or 30 percent, to $75.68 at 12:16 p.m. in New York Stock Exchange composite trading. Earlier, shares slid to $72.20, for the biggest intraday decline since the company began trading in July 1980. The stock gained 17 percent this year before today.
(bloomberg)
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