Current road block: Since we coded SIF as a GeoSpecial, the company has only had strong EPS growth in 2 of the last 5 quarters reported. Sales have not experienced the lift we had expected from the GEL acquisition nor has top line growth. The same can be said about net income. Despite what limited company commentary may infer, we are assuming that either the recent acquisition has been putting pressure on margins or that SIF's core business is facing operational issues. We were somewhat surprised of the weak fourth quarter 2012 results announced on November 30, 2012, since the September 26, 2012 release where SIF declared a special dividend release offered some positive commentary:
"For the second year in a row SIFCO has improved performance driven in part by our latest acquisition, Quality Aluminum Forge, exceeding expectations at both the sales and earnings level. T&W Forge, our fiscal year 2011 acquisition, continues to exceed expectations in both sales and earnings as well."
The company's IR efforts have also seemed to diminish, as the most recent earnings releases have offered little to no commentary by management.