Tag - Amn

Shares of Ameron International Corp. (NYSE:AMN) have plunged 30% midday after the manufacturer of materials for the chemical, industrial, energy, transportation, and infrastructure industries reported fiscal third-quarter earnings after Wednesday’s close that declined 30% from the year-ago period and fell short of the consensus on Wall Street. As the company grappled with difficult market and economic conditions, revenues also fell short of the Street.

Shares tumbled 30%, or $32.21, to $75.93 midday. For detailed price information and news stories on Ameron International, click AMN.

Small caps remain in the green near their intra-day highs mid-session, snapping a three day losing streak, as hopes that lawmakers are near agreement on the $700 billion bailout plan cheered investors.

At 12:40 p.m. ET. the Russell 2000 (NYSE:IWM) was up 12.70, or 1.82%, to 710.46.

Investors are sending stocks higher today, as passage of the bailout plan looks more likely. President Bush addressed the nation on Wednesday night in an attempt to rally national support for the plan and called a meeting today with Congressional leaders. The administration and the republicans have conceded to democrats’ amendments surrounding caps on executive compensation and judges’ ability to change the value of the toxic mortgages. Still, issues remain on the table — most notably how to stagger the cost of the plan. Passage of the plan would help thaw the frozen credit markets and enable banks to value assets tied to mortgages.

“Despite the increasingly testy exchanges in Congress, I still assume that some close approximation of the plan (with amendments) as currently being discussed will be agreed and become law next week,” Don Straszheim, vice chairman of investment bank Roth Capital, said in an email. “If this effort would come completely unraveled and stalled out, not impossible, my assumption is we would see a financial sector meltdown almost immediately of monumental proportions. Enough people seem to hold similar views that the ‘failure-to-pass’ outcome seems implausible.  It really is an insurance policy given the state of expectations at present.” 

Though the two day testimony for the $700 billion financial bailout plan is complete, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson will remain on Capitol Hill to testify before the House Committee on financial services on the government bailout of mortgage giants Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE).

While equity markets were higher, treasuries are saying otherwise. Treasuries continued to see yields of unprecedented lows, in a sign that investors demand next to nothing for a safe haven for their short-term cash. The one and three-month Treasury bill yields were both negative at minus 0.38% and minus 0.65% respectively. However, the 2-year and the 10-year were both lower, as their yields were higher midday at 2.1% and 3.8% respectively. (Prices move inversely to yields.)...

Ever think about a multi-faceted manufacturer of steel products as a global-warming play? It can be if it’s Northwest Pipe Co. (Nasdaq:NWPX), a diversified maker of steel products, notably the large-diameter pipes that bring water to the driest regions.

Northwest Pipe is a leading North American maker of high-pressure steel pipeline systems. The company, with corporate roots that date back more than a century, has plants scattered across North America. Northwest Pipe reorganized recently into two operating segments, tubular products and water transmission, having melded its Mexico-based fabricated products unit into its water works.

With an apparent flood of business coming its way, Northwest Pipe has drawn the interest of investors searching for an old-line, industrial manufacturer with some solid fundamentals to shore up its bottom line...

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.