Portec cost-cutting moves limit 4Q earnings decline
Written by William C. Vantuono, Editor-in-ChiefPittsburgh-based Portec Rail Products Inc. said its fourth-quarter earnings fell 5%, as a tax gain and cost-cutting efforts partially offset a steep decline in sales.
Portec earned $1.4 million, or 15 cents per share, in the fourth quarter of 2009, compared with $1.5 million, or 16 cents per share, in the comparable period a year ago. The most recent quarter included a tax gain of 2 cents per share. Revenue fell 21% to $19.2 million from $24.3 million in the comparable 2008 quarter. Portec said the company reduced inventory levels during the quarter.
For full-year 2009, earnings fell to $6.8 million, or 71 cents per share, from $7.8 million, or 81 cents per share, in 2008. Revenue fell to $92.2 million, from $109 million in 2008.
Last month, L.B. Foster, also based in Pittsburgh, announced its plans to acquire Portec’s 9.6 million shares of stock for $112 million, or about $11.71 per share. The deal is expected to close before the end of the second quarter.
At midday Tuesday, shares of Portec were trading at $11.75, down fractionally.
