Carbon fibre manufacturer Zoltek Companies, Inc. (NasdaqGS: ZOLT) reported a substantial decrease in profit for 3Q08.
Zoltek’s net income for the recently completed quarter was $2.3
million, compared to $5.0 million in 3Q07
and $4.3 million in 2Q08.
The sequential quarter decline in net income resulted primarily from
the decrease in sales and the unfavorable accounting impact of
appreciation in the value of the Hungarian Forint, which is the
functional currency of the Company’s Zoltek Rt. subsidiary.
Zoltek’s net sales for the quarter totaled $45.0 million, compared to $40.3 million in 3Q07, an increase of 11.7%. However, on a sequential quarter basis, sales in the latest quarter declined from the $49.6 million of sales reported by Zoltek in 2Q08.
Operating income from continuing operations was $7.3 million, up 9.0% from $6.7 million in 3Q07, but down 12.0% from $8.3 million in 2Q08.
"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 CEO.
The decline in sales from the second quarter to the third quarter was due in part to the reduced shipments against two major wind contracts, the timing of shipments between the periods and lower technical fiber sales, the company said.
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