Shares of Universal Stainless & Alloy Products stumbled in early trading today after the Bridgeville specialty steel producer reported sharply lower second-quarter results that were below Wall Street estimates.
Profit totalled $478,000, or 6 cents per share, versus profit of $4.5 million, or 62 cents per share, in the year-ago quarter.
The company said it would have lost money for the quarter were it not for a tax-related gain that added 11 cents per share to its bottom line.
Sales fell 37 percent to $42.9 million while shipments declined 36 percent.
Analysts were expecting profit of 11 cents per share on sales of $51.8 million.
"Demand and volumes were lower than anticipated in the second quarter as supply channel destocking continued and declining nickel prices and short industry lead times encouraged customers to delay new orders," chairman, president and CEO Dennis Oates said in a statement.
Sales to the aerospace industry remained flat with first-quarter levels, but sales to customers in the oil and gas, power generation and heavy equipment businesses declined, the company said.
Shortly after 10 a.m., Universal Stainless shares were trading at $24.43, down $2.13. They are off 34 percent this year.
Len Boselovic: firstname.lastname@example.org or 412-263-1941.