Zoltek Companies, Inc. (NasdaqGS:ZOLT), which makes carbon fibers used in wind turbine blades, car parts and sports equipment, reported almost $10 million less in sales for the first quarter of its 2008 fiscal year (ended December 31, 2007) than it did for Q107.
Zoltek’s net sales for the quarter totaled $40.1 million, compared to $30.3 million in Q107 and to $43.6 million in Q407.
According to the company, operating income from continuing operations before litigation charge totaled $4.8 million, compared to $3.0 million in Q107 and to $7.9 million Q407. Zoltek said its net income was $2.6 million in Q108, which compared to net losses of $5.7 million and $1.8 million reported for the first and fourth quarters of FY07, respectively.
Zsolt Rumy, Zoltek’s Chairman and CEO, said that although management had expected sales in the recent quarter to approximate the level reported for the immediately preceding quarter, volume was constrained by customer plant shutdowns in Europe over the holiday season and by year-end inventory adjustments by several customers who previously had built up their inventories to address concerns regarding possible shortages.
"With our increasing capacity, our customers are more confident that we will be able to supply all their requirements and, consequently, they worked down some safety stocks. Overall demand for our low-cost, high-performance carbon fibers remains strong and we are optimistic that we can reach our sales objective for fiscal 2008,” Rumy said.
"Longer term, we expect that over the next few years our growth trends will continue and we will achieve our sales and profitability targets,” Rumy said.
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