UPDATE 1-Universal Stainless Q4 beats Street, sees bleak Q1

jueves 29 de enero de 2009 14:26 CET
 

* Q4 results beat estimates

* Sees Q1 results below estimates

Jan 29 (Reuters) - Universal Stainless & Alloy Products Inc (USAP.O: Cotización) posted quarterly results that topped market estimates, helped by higher revenue fueled by a rise in shipments, but forecast weak first-quarter results on a drop in backlog and a planned two-week outage.

For the fourth quarter, the company's net income dropped 72 percent $1.2 million, or 18 cents a share, from $4.4 million, or 65 cents a share, in the year-ago quarter.

Revenue rose 15 percent to $57.1 million, helped by a more than two-fold rise in shipments to forgers for the global power generation markets.

However, aerospace sales fell 5 percent, hurt by reduced demand and a lingering effect of the Boeing (BA.N: Cotización) strike, Universal Stainless said.

Analysts, on average, were looking for earnings of 3 cents a share, before items, on revenue of $46.7 million, according to Reuters Estimates.

For the first quarter, the company forecast earnings in the range of breakeven to 10 cents a share, on sales of $32 million to $42 million.

Analysts on average were expecting earnings of 13 cents a share, before items, on revenue of $46.5 million.

The company attributed the low forecast to a fall in backlog in the December quarter, drop in raw material prices and an estimated expense of $300,000 due to a planned two-week melt shop outage.

Shares of the company closed at $15.29 Wednesday on Nasdaq. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Himani Sarkar)