Zoltek's Q3 profit drops 54 percent
St. Louis Business Journal - by Kelsey Volkmann
Monday, August 11, 2008 - 7:11 PM CDT | Modified: Monday, August 11, 2008 - 7:12 PM
Zoltek Companies Inc. said Monday its profit dropped 54 percent in the third quarter due to reduced shipments against two major wind contracts and lower technical fiber sales.
The company reported a profit of $2.3 million in the third quarter, down from $5 million a year earlier.
Zoltek's sales for the quarter ended June 30 totaled $45 million, up 11.7 percent from $40.3 million a year ago.
Zoltek experienced a dearth of significant new contracts from customers in the wind energy field over the past year, which the company attributes to concerns among wind turbine producers about the availability and pricing of the high-performance carbon fibers used in making blades.
"The interruption of the strong growth trends we have experienced over the past several years was disappointing, but we remain extremely confident about our future growth," said Zsolt Rumy, Zoltek's chairman and chief executive, in a statement. "We are working closely with every one of the major wind turbine manufacturers to address their concerns about incorporating carbon fibers in their design and, while we cannot predict the exact timing, we expect to win new contracts leading to resumption of Zoltek's rapid sales growth."
Zoltek also announced Monday that its facility in Guadalajara, Mexico, acquired in September 2007, has now begun to produce test quantities of acrylic fiber precursor raw material.
Bridgeton, Mo.-based Zoltek Cos. Inc. (Nasdaq: ZOLT) manufactures carbon fiber products.
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