Exhibit 99.2
Ameron Reports Strong First-Quarter Results
PASADENA, Calif.--(BUSINESS WIRE)--March 22, 2006--Ameron
International Corporation (NYSE:AMN) today reported earnings of $0.41
per diluted share on sales of $175.3 million for the first quarter
ended March 5, 2006. These results compare to earnings of $0.06 per
diluted share and sales of $138.8 million in the first quarter ended
February 27, 2005.
All business segments had higher sales and made positive
contributions to the earnings improvement with the exception of the
Water Transmission Group, which had lower income but higher sales.
TAMCO, Ameron's 50%-owned steel mini-mill in California, also had
higher income in the first quarter of 2006.
"The first-quarter performance was well balanced, and the momentum
of 2005 with record sales and earnings continues," stated James S.
Marlen, Ameron's Chairman, President and Chief Executive Officer.
"These first-quarter results represent a solid start for 2006."
The Fiberglass-Composite Pipe Group sales increased 38% in the
first quarter of 2006 compared to the same period of 2005, and segment
income increased commensurate with sales growth. The sales increase
was due principally to strong demand for onshore oilfield piping,
primarily in North and South America, increased volume in chemical and
industrial applications in the U.S., the Middle East and Europe, and
stronger demand in the U.S. for fuel-handling piping. The marine and
offshore markets remain steady worldwide, while the onshore oilfield
market continues to be driven by high oil prices. The outlook for the
Fiberglass-Composite Pipe Group is positive, based on a solid order
backlog and favorable conditions in key worldwide markets.
The Performance Coatings & Finishes Group had higher sales and
incurred a slight loss of approximately $300,000 in the first quarter
of 2006, compared to a loss of $2.5 million in the first quarter of
2005. Sales improved by 18% as all worldwide operations had higher
sales, in spite of the weakened euro and Australian and New Zealand
dollars. In the U.S., the sales improvement was broad-based as selling
prices were higher on increased shipments to all key market segments,
including marine, offshore and commercial and industrial maintenance
markets. In Europe, sales of protective coatings for industrial
markets increased on higher volume and higher selling prices. Sales in
Australasia improved moderately, primarily in general industrial
markets. The improved profitability was attributable to the sales
increase and higher profit margins. Looking forward, market conditions
have been improving, and the Performance Coatings & Finishes Group
should continue to recover.
The Infrastructure Products Group had significantly higher sales
(up 31%) and income in the first quarter of 2006, compared to the
first quarter of 2005. Ameron's Hawaiian operation and Pole Products
operation both achieved improved operating results. The construction
sector remains very active in Hawaii, and Ameron's Hawaiian ready-mix
concrete and aggregates operation on Oahu, and especially on Maui,
experienced increased demand. Pole Products continued to penetrate the
residential market in the Southeast, principally Florida, and the
residential construction market in California remains at a high demand
level. Segment income was higher due to the sales increase and
improved profit margins, which rose due to manufacturing efficiencies
and higher selling prices. The outlook for the business remains
positive as a result of the favorable construction market conditions.
The Water Transmission Group had higher sales in the first quarter
of 2006, compared to the same period of 2005. Segment income, however,
was lower due to lower margins and start-up costs associated with
introduction of the wind-tower product line. The sales increase
included higher pipe sales in the western U.S., improved protective
linings demand, and higher sales in Colombia. Water Transmission is
not expected to reach the record levels of 2005. However, the
longer-term outlook remains positive.
TAMCO had higher profits in the first quarter of 2006, compared to
the same period in 2005. The construction sector in Arizona, Nevada
and California remains strong, and demand for steel rebar continues
high. The outlook for TAMCO for 2006 remains favorable.
James Marlen continued, "While the first quarter is not
necessarily representative of the full year, I am pleased with the
improved performance and balance of operations. I am optimistic that
we will achieve steady earnings growth in 2006."
Ameron International Corporation is a multinational manufacturer
of highly-engineered products and materials for the chemical,
industrial, energy, transportation and infrastructure markets. Traded
on the New York Stock Exchange (AMN), Ameron is a leading producer of
water transmission lines; high-performance coatings and finishes for
the protection of metals and structures; fiberglass-composite pipe for
transporting oil, chemicals and corrosive fluids and specialized
materials and products used in infrastructure projects. The Company
operates businesses in North America, South America, Europe,
Australasia and Asia. It also participates in several joint-venture
companies in the U.S. and the Middle East.
Cautionary statement for purposes of the "Safe Harbor" provisions
of The Private Securities Litigation Reform Act of 1995: Any
statements in this report that refer to the forecasted, estimated or
anticipated future results of Ameron International Corporation
("Ameron" or the "Company") are forward-looking and reflect the
Company's current analysis of existing trends and information. Actual
results may differ from current expectations based on a number of
factors affecting Ameron's businesses, including competitive
conditions and changing market situations. Matters affecting the
economy generally, including the state of economies worldwide, can
affect Ameron's results. Forward-looking statements represent the
Company's judgment only as of the date of this report. Since actual
results could differ materially, the reader is cautioned not to rely
on these forward-looking statements. Moreover, Ameron disclaims any
intent or obligation to update these forward-looking statements.
Ameron International Corporation
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
---------------------------------
(In thousands, except share and per March 5, February 27,
share data) 2006 2005
- ------------------------------------ --------------- ---------------
Sales $ 175,292 $ 138,812
Cost of Sales (133,377) (105,800)
--------------- ---------------
Gross Profit 41,915 33,012
Selling, General and Administrative
Expenses (37,455) (32,975)
Other Income, Net 957 1,167
--------------- ---------------
Income before Interest, Income Taxes
and Equity in Earnings of Joint
Venture 5,417 1,204
Interest Expense, Net (924) (1,378)
--------------- ---------------
Income/(Loss) before Income Taxes
and Equity in Earnings of Joint
Venture 4,493 (174)
Provision for Income Taxes (1,662) 61
--------------- ---------------
Income/(Loss) before Equity in
Earnings of Joint Venture 2,831 (113)
Equity in Earnings of Joint Venture,
Net of Taxes 780 594
--------------- ---------------
Net Income $ 3,611 $ 481
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Net Income per Diluted Share $ .41 $ .06
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Cash Dividends Paid per Share $ .20 $ .20
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CONTACT: Ameron International Corporation
James S. Marlen, 626-683-4000
Gary Wagner, 626-683-4000
James R. McLaughlin, 626-683-4000