Rail unit powers L.B. Foster 3Q earnings
Written by William C. Vantuono, Editor-in-ChiefL.B. Foster Co. said its third-quarter earnings rose 50% to $9.7 million or 95 cents per share , measured against $6.5 million, or 63 cents per share, in the comparable period one year ago.
Revenue rose 30% to $162.7 million from $125.6 million in the year-ago quarter, the company said Tuesday.
L.B. Foster said its rail and tubular segments reported strong results, while weakness in its construction unit continued. The company’s Portec rail products and rail distribution sales were up 67%; L.B. Foster completed the acquisition of Portec Rail Products last year.But the company expressed concern over the uncertainty of federal transportation funding, which it says will continue to impact its business because it may discourage additional infrastructure spending.
The "lack of progress related to new transportation legislation and steadily decreasing government spending on infrastructure due to weak finances are perpetuating negative headwinds for our construction and transit markets," the company said in a statement. "We expect to continue to experience a highly competitive market environment for the next nine months and we are concerned about the likelihood of a satisfactory resolution of transportation legislation as well as appropriate funding mechanisms for such a bill."
