L.B. Foster posts sharp 3Q profit decline

L.B. Foster posts decline in 3Q profit as sales fall in all segments

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Symbol	Price	Change
FSTR	29.55	0.00

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PITTSBURGH (AP) -- L.B. Foster Co., which provides services and products for rail, construction and energy markets, said Friday its third-quarter profit fell sharply on sales declines in all its businesses.

Net income of $6.1 million, or 60 cents per share, was down 24 percent from $8.1 million, or 76 cents per share in the same period last year.

Analysts surveyed by Thomson Reuters expected, on average, earnings of 39 cents per share

Revenue for the quarter ended Sept. 30 was $92.4 million, down 37 percent from $145.6 million in the year-ago period.

Stan Hasselbusch, president and CEO, said all of L.B. Foster's businesses posted significant declines in net sales in the third quarter.

Manufacturing and yard operations are cutting costs, but certain facilities cannot cover their fixed costs at low volumes, he said.

"Accordingly, we had further reductions in plant personnel and we implemented a reduction in our salaried work force as well," Hasselbusch said.

He did not provide details on the staff reductions. A spokesman did not immediately return a call seeking information.

Shares slid 15 cents to $30.49 in afternoon trading.