Ameron International’s 4th-quarter profit falls 72 percent on lower sales

Ameron International 4Q profit falls 72 percent

PASADENA, Calif. — Industrial pipeline maker Ameron International Corp. said Wednesday first-quarter profits plunged 72 percent as severe weather cut into what is already a traditionally slow period for the industry.

The company earned $1.1 million, or 12 cents per share, compared with profit of $3.8 million, or 41 cents per share, during the same period a year prior. Sales fell 25 percent to $109 million from $146 million.

Analysts polled by Thomson Reuters expected profit of 56 cents per share on revenue of $128.7 million.

President and CEO James Marlen said that the company usually makes up for slow sales due to weather later in the year, yet company shares still slumped 6.7 percent, or $4.50 to close at $62.89.

The weak economy has also cut into sales and Ameron is involved in a dispute with investor Barrington Capital Group, which owns about 3.7 percent of outstanding shares.

On Tuesday, Barrington sent a letter to the company saying Ameron’s stock is undervalued and the company needs to control costs.

It cited executive compensation and costs as factors and suggested cutting certain businesses and other cost controls.

On Wednesday, Ameron responded, saying it agrees that the stock is undervalued, but disagreed to Barrington’s reasons.