Ameron International Corp. (NYSE: AMN)
Pasadena, Calif.
http://www.ameron.com
 
52-week low / high: $64.08 / $117.72
Shares Outstanding: 9.15 million
Market Capitalization: $1 billion 

While some investors are attracted to exotic companies that seem lifted from the pages of a Jules Verne novel (certain biotech and tech stocks come to mind), it is often the simple sectors that end up winning in the long run. Take, for instance, Ameron International Corp.'s (NYSE: AMN) trade.

The Pasadena, Calif.-based company manufactures and sells engineered products and materials for the chemical, industrial, energy, transportation and infrastructure industries, not the most interesting industries, but definitely among the tried and true. Ameron has three operating segments: fiberglass-composite pipe segment, water transmission segment and an infrastructure products segment, and operates globally, reducing risk to macroeconomic shocks of the U.S. economy.

The fiberglass-composite pipe segment, in which Ameron develops filament-wound and molded composite fiberglass pipe and fittings for industries, including industrial, petroleum and chemical processing, serves as the engine that propels the sales and earnings growth for the company.

For 2007, the fiberglass-composite segment experienced sales growth of 35%, while segment income increased 65% over 2006, driven by favorable market conditions in the company's key market segments worldwide, including marine, offshore, onshore oilfield, and chemical and industrial markets. Specifically, Ameron's operations in Singapore and Malaysia achieved significant sales growth due to continued strong demand from the shipbuilding industry, particularly in Korea, Japan, Singapore and China.

Going forward, growth in this segment should continue, propelled by current operations as well as international expansion and sales. The company acquired Polyplaster, Ltd. in the fourth quarter of 2007, a polyester fiberglass pipe manufacturer that serves the water and industrial markets in Brazil.  The acquisition should provide a foundation for Ameron to capitalize on the South American market.

For the fourth quarter ended Nov. 30, 2007, (the most recent quarter for which data is available) net income surged 83% to $21.8 million, or $2.39 per share, from $11.9 million, or $1.33 per share, in the fourth quarter of 2006. Sales jetted up 25% to $188.9 million, compared with $150.6 million in the fourth quarter of 2006.

For fiscal 2007, ended Nov. 30, 2007, net income increased 29% to $67.2 million, or $7.40 per share, compared with net income of $52.2 million, or $5.88 per share, in 2006. Sales increased 15% to $631 million from $549.2 million in 2006.

Investors, keep your antennas alert for what could be another record performing quarter. If Ameron's first quarter proves to be anything like its fourth quarter of 2007, be prepared for greater upside.

Note: Ameron International Corp. (NYSE: AMN) is on the "Watch List" of Growth Report, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, Ameron displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Growth Report portfolio at a later date.

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