Zoltek Companies, Inc. (Nasdaq: ZOLT), manufacturer of carbon fiber used in wind turbines and other applications, reported continued strong growth in the first quarter of its 2006 fiscal year, combined with improved operating results. For the quarter ended December 31, 2005, Zoltek’s net sales increased 36.6% to $16.7 million from $12.2 million in the first quarter of fiscal 2005. Zoltek reported an operating loss from continuing operations of $880,000, including approximately $460,000 in Sarbanes-Oxley compliance charges, compared with a $1.4 million operating loss in the comparable period in fiscal year 2005.
“We are pleased to report that the increased sales and improved financial performance are largely due to the performance of the Abilene plant after we made the necessary management changes that we previously reported,” Zsolt Rumy, Zoltek’s Chairman and Chief Executive Officer said. “Our sales are still constrained by our carbon fibers capacity utilization, which will continue to improve during subsequent quarters. We are also adding substantial new capacity during the remainder of this fiscal year and beyond.
“We are especially pleased to report that in the quarter ending December 31, 2005 the Carbon Fiber Business Unit’s operating profit was $413,000 compared with a $1.6 million loss in the comparable period in fiscal year 2005,” added Rumy. “And perhaps our most significant achievement is that in the month of December, Zoltek’s operating profit was approximately $400,000 on $6.2 million sales. We believe this is representative of our expectations for improving our financial performance during the remainder of fiscal 2006.”
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