Zoltek Reports First Quarter Results
Monday February 9, 2009, 4:31 pm EST
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ST. LOUIS, Feb. 9, 2009 (GLOBE NEWSWIRE) -- Zoltek Companies, Inc. (NasdaqGS:ZOLT - News) today reported the financial results for the first quarter of its 2009 fiscal year.
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Zoltek's net sales for the quarter ended December 31, 2008, totaled $38.6 million, compared to $40.1 million in the first quarter of fiscal 2008, a decrease of 3.6%.
Operating income from continuing operations totaled $3.5 million in the first quarter of fiscal year 2009, compared to $4.8 million in the first quarter of fiscal 2008. Zoltek's net income was $0.5 million in the first quarter of fiscal 2009, which compared to net income of $2.6 million reported for the first quarter of fiscal 2008.
``We normally expect to be impacted by customers' year-end production curtailment and seasonal inventory adjustments in the last quarter of each calendar year -- the first quarter of our fiscal year. This year our results were further affected by customer reaction to increasingly serious global economic uncertainties. Customers in the computer and automotive markets, along with one of our wind turbine customers, postponed or cancelled some orders. While this is certainly disappointing, we believe it represents a temporary lull in the strong growth profile that Zoltek has established in recent years,' said Zsolt Rumy, Zoltek's Chairman and Chief Executive Officer. ``Although our business is not immune to the global economic turndown, as well as the effects of currency fluctuations and extreme variations in cost of energy and raw materials, there is no evidence of change in the long-term demand from commercial applications for low-cost carbon fibers or the outlook for our business.'
Zoltek reported that the most significant reduction in its first quarter sales came from the shut-down of Gamesa's manufacturing facilities in December and the reduction in their inventory. Currently, Gamesa is Zoltek's second largest wind turbine customer. In commenting on the decrease in sales to Gamesa, the Company noted its belief that it did not evidence a long-term decline in demand for wind turbines, but rather that Gamesa's customers have been adversely affected by difficult capital markets in financing installation of new wind energy generation. Due mainly to the postponement or cancellation in sales orders, Zoltek's inventories increased from $45.7 million on September 30, 2008, to $53.2 million on December 31, 2008. The primary increase in inventory was in finished goods waiting to be shipped.
However, Rumy noted that the fundamentals of the wind energy sector remain strong -- with clear potential of continuing 20-to-25% annual growth. He cited continued growth in demand from, and deliveries to Vestas Wind Systems, the world's largest manufacturer of advanced wind turbines and Zoltek's biggest customer. He added: ``We are optimistic about the prospects of future growth in demand from current wind energy customers and prospective customers. Overall wind turbine demand grew just as fast when oil prices were less than $30 per barrel, and a number of wind turbine manufacturers are again actively looking at the high performance carbon fiber-reinforced blade designs. Despite the uncertainties in the current environment, we believe that Zoltek's long-term growth objectives are still attainable and with our efforts in developing new customers, new applications and new markets, it is entirely possible that fiscal 2009 as a whole will wind up being another year of strong growth for Zoltek.'
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