Carbon fibre producer Zoltek Q3 FY'13 sales fall 37%

Revenues in the recently completed quarter excluded sales of $2.0 million from carbon fibers in-transit for delivery to a customer in China at the end of the quarter, which will be recognized in the current quarter. On a sequential basis, net revenues for the latest quarter decreased from $33.3 million in the second quarter of fiscal 2013.

Zoltek reported a net loss of $0.9 million ($0.03 per share) in the third quarter of fiscal 2013, which included a $1.2 million loss from foreign currency transactions. That compared to net income of $3.3 million in the immediately preceding quarter, which included a gain of $1.7 million from foreign currency transactions, and to net income of $5.6 million ($0.16 per share) in fiscal 2012’s third quarter. The Company’s operating earnings were $1.0 million in the latest quarter, compared to $1.7 million in the second quarter of the current fiscal year, and to $6.4 million in the third quarter of fiscal 2012.

For the nine months ended June 30, 2013, Zoltek’s net sales were $99.5 million, compared to $142.1 million in the first nine months of fiscal 2012, a decrease of 30%. Operating income for the year-to-date period of fiscal 2013 was $6.3 million, compared to $20.3 million in the corresponding period of fiscal 2012. Net income for the recent nine months was $5.4 million ($0.16 per share), compared to $18.6 million in the first three quarters of fiscal 2012 ($0.54 per share).

“The cyclical downturn in the wind energy market that began in the fourth quarter of fiscal 2012, continued to negatively affect our sales and operating results in the third quarter.

"However, in recent weeks we have seen a number of signs that demand in our sector of the wind energy market – supplying carbon fibers used in the manufacture of the biggest and most advanced wind turbines – is picking up again and will show renewed strength through at least the end of calendar year 2013,” said Zsolt Rumy, Zoltek’s Chairman and Chief Executive Officer. Rumy added, “Despite a small third quarter net loss – our first in eight quarters – Zoltek remains cash flow positive from operating activities, with a sound balance sheet.”

“Meanwhile, we continue to invest and make solid progress in our long-term efforts to develop new applications for our low-cost, high-performance carbon fibers in other fields – with automotive leading the list. We are working closely with auto companies, their top-tier suppliers, and composite equipment companies in dozens of trials and demonstration projects.”

Zoltek