Gibraltar Industries posts smaller 1Q profit

Gibraltar Industries' 1st-quarter profit falls 83 percent as costs rise

Associated Press

BUFFALO, N.Y. (AP) -- Gibraltar Industries Inc.'s said Thursday that its first-quarter profit tumbled 83 percent from a year earlier, as the building and industrial products manufacturer's expenses increased and West Coast order volume dropped.

The company's adjusted results missed Wall Street's expectations, and shares sank more than 14 percent.

The company reported net income of $1.4 million, or 4 cents a share, for the three months ended March 31. That compares to a profit of $8.4 million, or 27 cents a share, in the prior-year quarter.

Stripping out the impact of acquisition-related expenses and other costs, Gibraltar earned 9 cents a share.

Analysts had expected, on average, adjusted earnings of 18 cents a share, according to FactSet.

Revenue in the latest quarter increased 17 percent to $192.2 million from $163.6 million a year earlier. Analysts were looking for revenue of $201.6 million.

The revenue gains were more than offset by lower demand from the West Coast housing market, the company said.

Higher costs also offset revenue.

The company said selling, general and administrative expenses grew to $28.5 million from $22.8 million a year earlier.

Management acknowledged the company got off to a slow start in the first quarter, profit-wise. But said it expects full-year results to be ahead of 2011, pointing to the improved sales trends in the January-to-March period.

Gibraltar shares ended regular trading down $2.01, or 14.5 percent, at $11.86.

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