LB Foster Acquires Ball Winch Pipeline - Analyst Blog
November 11 2013 - 6:05PM
Zacks
Pittsburgh, PA-based L.B. Foster Company (FSTR)
recently announced the acquisition of privately-owned Ball Winch
Pipeline Services, LLC. Established in 2005, Ball Winch Pipeline
deals in customized coating services for steel pipe and fabricated
steel products. The value of the acquisition remained
undisclosed.
Ball Winch Pipeline will become a part of Foster’s Tubular
segment. The acquisition will enable Foster to enhance its product
offering in oil and gas, mining, water and waste water
industries.
The company has been eyeing coating expansion for quite sometime
now. Earlier this month, Foster announced the expansion of its
Birmingham, Alabama based steel pipe coating facility. This project
was undertaken to meet the increased demands from Foster’s
strategic partner, AMERICAN Steel Pipe.
These strategic initiatives are likely to help the company
achieve improved results in the upcoming quarters. Their aim is to
enhance the Tubular segment, decline in which was a major reason
for the drop in earnings per share in the third quarter of
2013.
A highlight of the third quarter 2013 results has been provided
to better understand the situation. Earnings per share in the
quarter came in at 95 cents, down 5.0% year over year. The decline
can be attributed to 4.8% fall in revenues led primarily by decline
in the Rail and Tubular Products segment’s sales. In the third
quarter, the Tubular segment’s sales fell 45.0% year over year to
$7.4 million, as a result of lower sales in the coated
products.
Foster currently carries a Zacks Rank #3 (Hold). Other stocks
worth a watch in the industry include Companhia Siderurgica
Nacional (SID), Shiloh Industries Inc.
(SHLO) and United States Steel Corp. (X). While
Companhia Siderurgica and Shiloh hold a Zacks Rank #1 (Strong Buy),
United States Steel carries a Zacks Rank #2 (Buy).
FOSTER LB CO (FSTR): Free Stock Analysis Report
SHILOH INDS INC (SHLO): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis Report
UTD STATES STL (X): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
L B Foster (NASDAQ:FSTR)
Historical Stock Chart
From Sep 2024 to Oct 2024
L B Foster (NASDAQ:FSTR)
Historical Stock Chart
From Oct 2023 to Oct 2024