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Zoltek Companies Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 9, 2011 04:11PM

Zoltek Companies Inc. (ZOLT) filed Quarterly Report for the period ended 2011-06-30. Zoltek Companies Inc. has a market cap of $269.1 million; its shares were traded at around $7.88 with and P/S ratio of 2.1.



Highlight of Business Operations:

The Company's cost of sales decreased by 9.7%, or $3.7 million, to $34.1million in the third quarter of fiscal 2011 from $37.8 million in the third quarter of fiscal 2010. Carbon fiber cost of sales decreased by 19.0%, or $6.1 million, to $26.0 million for the third quarter of fiscal 2011 from $32.1 million for the third quarter of fiscal 2010 as a result of the decrease in carbon fiber sales of 16.5% discussed above. Technical fiber cost of sales increased 38.2%, or $2.1 million, to $7.6 million for the third quarter of fiscal 2011 from $5.5 million for the third quarter of fiscal 2010 as a result of the increased sales noted above and the increase in raw material costs.

The Company's gross profit decreased by $0.2 million to $4.5 million, or 11.5% of sales in the third quarter of fiscal 2011 from $4.7 million, or 11.0% of sales in the third quarter of fiscal 2010. Carbon fiber gross profit percentage increased to 11.6% for the third quarter of fiscal 2011 compared to 9.0% for the third quarter of fiscal 2010. Carbon fiber gross profit increased to $3.4 million from $3.2 million during these respective periods. The increases in carbon fiber gross profit and gross profit percentage resulted primarily from price increases to key customers and decreases in cost of sales for the third quarter of fiscal 2011 compared to the third quarter of fiscal 2010. Technical fiber gross profit decreased to $1.0 million, or 11.2% of sales, in the third quarter of fiscal 2011 from $1.3 million, or 19.4% of sales, in the third quarter of fiscal 2010. The decreases in technical fiber gross profit and margin resulted from increased cost of sales related to raw material costs and product mix. The corporate/other products segments reported gross profit of $0.1 million for the third quarter of fiscal 2011 compared to $0.2 million for the third quarter of fiscal 2010.

Operating loss from the third quarter of fiscal 2011 was $1.2 million, an increase of $0.3 million from the operating loss of $0.9 million incurred during the third quarter of fiscal 2010. This additional loss resulted primarily from a decrease in gross profit of $0.2 million and additional research and development costs of $0.1 million. Carbon fiber operating income increased to $1.4 million in the third quarter of fiscal 2011 from income of $1.3 million in the third quarter of fiscal 2010. The improvement resulted primarily from higher gross profit as discussed above. Operating income from technical fibers declined to $0.7 million in the third quarter of fiscal 2011 from $1.1 million in the third quarter of fiscal 2010. The decline in technical fiber operating income resulted from the decrease in gross profit described above. Other products/ headquarters operating loss increased to a loss of $3.3 million in the third quarter of fiscal 2011 from a loss of $3.2 million in the third quarter of fiscal 2010.

The Company s cost of sales increased by 11.8%, or $10.3 million, to $97.6 million in the first nine months of fiscal 2011 from $87.3 million in the first nine months of fiscal 2010. The increase in cost of sales reflected increased sales of 11.5% discussed above and increased raw material costs. Carbon fiber cost of sales increased by 7.5%, or $5.4 million, to $77.0 million for the first nine months of fiscal 2011 from $71.6 million for the first nine months of fiscal 2010. The increase in carbon fiber cost of sales reflected increased sales of 7.3% discussed above. Technical fiber cost of sales increased by 33.5%, or $4.9 million, to $19.5 million for the first nine months of fiscal 2011 from $14.6 million for the first nine months of fiscal 2010.

The Company s gross profit increased by 9.2%, or $0.9 million, to $11.0 million, or 10.1% of sales for the first nine months of fiscal 2011 from $10.1 million, or 10.1% of sales in the first nine months of fiscal 2010. Carbon fiber gross profit margin decreased to 9.0% for the first nine months of fiscal 2011 compared to 9.1% for the first nine months of fiscal 2010. Carbon fiber gross profit increased to $7.6 million from $7.2 million during these respective periods. The decrease in gross profit percentage resulted primarily from increased raw material costs and available unused capacity costs during the first nine months of fiscal 2011 compared to the corresponding period of fiscal 2010. Technical fiber gross profit increased to $2.8 million, or 12.6% of sales, in the first nine months of fiscal 2011 from $2.5 million, or 14.8% of sales, during the corresponding period of fiscal 2010. The increase in gross profit resulted from the increase in sales discussed above. The decrease in technical fiber gross profit percentage resulted from increased raw material costs and product mix. The corporate/other products segment reported a gross profit of $0.6 million for the first nine months of fiscal 2011 compared to $0.3 million for the first nine months of 2010.

Operating loss from the first nine months of fiscal 2011 was $5.7 million, an improvement of $3.0 million from the operating loss of $8.7 million incurred during the first nine months of fiscal 2010. This improvement resulted primarily from an increase in gross profit of $0.9 million and a decrease in selling, general and administrative expenses of $2.4 million, offset by and an increase in research and development expenses of $0.4 million. Carbon fiber operating income improved to $1.4 million in the first nine months of fiscal 2011 from income of $0.9 million in the first nine months of fiscal 2010. The improvement resulted from an increase in gross profit as discussed above. Operating income from technical fibers increased to $2.0 million in the first nine months of fiscal 2011 from $1.9 million in the first nine months of fiscal 2010. The increase in technical fiber operating income resulted from the increase in gross profit described above. Other products/ headquarters operating loss improved to a loss of $9.1 million in the first nine months of fiscal 2011 from a loss of $11.5 million in the first nine months of fiscal 2010. This was primarily due to the decrease in selling, general and administrative expenses as discussed above.

Read the The complete Report



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