Exhibit 99.1
Ameron Reports Stronger Second-Quarter Operating Performance
PASADENA, Calif.--(BUSINESS WIRE)--June 21, 2007--Ameron
International Corporation (NYSE:AMN) reported earnings of $15.8
million, or $1.74 per diluted share, in the second quarter ended May
27, 2007. In the second quarter of 2006, net income totaled $18.7
million, or $2.11 per diluted share, and included a nonrecurring,
pretax gain on the sale of property of $9.0 million. Excluding
property sales, second-quarter results were higher in 2007 than in
2006 as a result of the improved operating performance of continuing
operations.
Earnings per diluted share from continuing operations, which
excludes the Performance Coatings & Finishes business that was
divested in 2006, were $1.63 in the second quarter of 2007, compared
to $1.94 per share, including the gain on the property sale, in the
second quarter of 2006. Income from discontinued operations, after
taxes, was $.11 per diluted share in the second quarter of 2007,
compared to $.17 per diluted share in the second quarter of 2006.
Sales totaled $156.8 million in the second quarter of 2007, compared
to $132.7 million in the second quarter of 2006.
For the six months ended May 27, 2007, earnings per diluted share
totaled $2.68, compared to earnings per diluted share of $2.53 for the
six months ended June 4, 2006. Earnings per diluted share from
continuing operations were $2.55 for the six months ended May 27,
2007, compared to earnings per diluted share of $2.38, including the
pretax property sale gain of $9.0 million, for the six months ended
June 4, 2006. Income from discontinued operations, after taxes,
totaled $.13 per diluted share for the six months ended May 27, 2007,
compared to $.15 per diluted share for the six months ended June 4,
2006. Sales for the six months ended May 27, 2007 totaled $277.1
million, compared to $258.6 million for the six months ended June 4,
2006.
The Fiberglass-Composite Pipe and Infrastructure Products Groups,
as well as TAMCO, Ameron's 50%-owned steel mini-mill, had improved
operating results in the second quarter of 2007. The Water
Transmission Group had higher sales, but income was lower in the
second quarter of 2007, compared to the second quarter of 2006, due
primarily to start-up costs associated with the wind-tower production
and delayed water pipe orders.
"The performance of our continuing operations increased
substantially in the quarter and the first half," stated James S.
Marlen, Ameron's Chairman, President and Chief Executive Officer. "The
Company's strong performance trend continues, and, given the generally
favorable market conditions and the anticipated improvement in the
Water Transmission Group, we should achieve solid results in the
second half of 2007."
The Fiberglass-Composite Pipe Group had higher sales and segment
income in the second quarter of 2007, compared to the second quarter
of 2006. Sales improved 32%, as all operations worldwide experienced
increased demand due to the continued strength in core markets,
primarily the marine, offshore, chemical and industrial segments.
Onshore oilfield piping demand remained steady at historically high
levels. The increase in segment income totaled $6.6 million, or 66%,
reflecting the higher sales volume, plant efficiencies and favorable
product/market mix. The outlook for the Fiberglass-Composite Pipe
Group remains positive.
The Infrastructure Products Group had higher sales and segment
income in the second quarter of 2007, compared to the second quarter
of last year. Both the Hawaiian and the Pole Products Divisions had
improved performances. Sales increased $4.8 million, or nearly 10%,
while segment income improved $2.5 million, or 33%. The Hawaiian
Division achieved higher sales on both Oahu and Maui and across all
construction sectors, with the exception of residential. Pole
Products' sales improved slightly in both the steel pole market and
the decorative concrete lighting pole market. Orders for residential
lighting products in the key Southern California and southeastern U.S.
markets moderated during the second quarter. The overall construction
markets served by the Hawaiian and Pole Products Divisions are stable,
although the residential construction markets have slowed. The outlook
for the Infrastructure Products Group remains steady.
The Water Transmission Group had higher sales of $5.4 million in
the second quarter of 2007, compared to the second quarter of last
year. The sales increase was driven by Ameron's entry into the market
for large-diameter wind towers, offset somewhat by lower sales of
water transmission pipe and protective linings. Segment income was
lower than in the second quarter of last year. The continued softness
of the water infrastructure market in the West and delays of ongoing
projects were the primary reasons for the lower water transmission
pipe sales. While the anticipated recovery of the water transmission
pipe market has started, the recovery is slower than anticipated.
Overall, the outlook for the Water Transmission Group is for a
continued robust wind-tower market, with the water pipe markets
improving steadily.
TAMCO had continued earnings growth, while sales were slightly
less in the second quarter of 2007, compared to the second quarter of
2006. Ameron's share of TAMCO's net income totaled $4.2 million after
taxes, compared to $3.8 million in the second quarter of 2006. For the
six months ended May 27, 2007, TAMCO's sales increased 19%, while
Ameron's share of TAMCO's net income increased from $4.6 million to
$9.3 million, net of taxes. The demand for steel rebar in the western
U.S. region remains strong due to a high level of commercial and
highway construction. Market dynamics remain positive, and metal
spreads reflect the strong business conditions. The outlook for TAMCO
remains favorable.
James Marlen concluded, "On balance, business and market
conditions remain favorable worldwide, and we anticipate that our
businesses will continue to deliver strong results in 2007."
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 and fabricated steel products, such as wind
towers; 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 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 AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Six Months Ended
--------------------- ---------------------
May 27, June 4, May 27, June 4,
(Dollars in thousands,
except per share data) 2007 2006 2007 2006
- -------------------------- ---------- ---------- ---------- ----------
Sales $156,756 $132,657 $277,111 $258,629
Cost of sales (115,994) (97,886) (211,029) (195,276)
---------- ---------- ---------- ----------
Gross profit 40,762 34,771 66,082 63,353
Selling, general and
administrative expenses (25,959) (23,545) (47,459) (46,509)
Other income, net 937 9,352 1,955 9,364
---------- ---------- ---------- ----------
Income from continuing
operations before
interest, income taxes
and equity in earnings
of joint venture 15,740 20,578 20,578 26,208
Interest (expense)/income,
net (18) (969) 348 (1,919)
---------- ---------- ---------- ----------
Income from continuing
operations before
income taxes and equity
in earnings of joint
venture 15,722 19,609 20,926 24,289
Provision for income taxes (5,137) (6,227) (7,057) (7,912)
---------- ---------- ---------- ----------
Income from continuing
operations before
equity in earnings of
joint venture 10,585 13,382 13,869 16,377
Equity in earnings of
joint venture, net of
taxes 4,228 3,803 9,256 4,583
---------- ---------- ---------- ----------
Income from continuing
operations 14,813 17,185 23,125 20,960
Income from discontinued
operations, net of taxes 990 1,517 1,146 1,353
---------- ---------- ---------- ----------
Net income $15,803 $18,702 $24,271 $22,313
========== ========== ========== ==========
Basic earnings per share:
Income from continuing
operations $1.64 $1.98 $2.57 $2.43
Income from discontinued
operations, net of
taxes .11 .18 .13 .15
---------- ---------- ---------- ----------
Net income $1.75 $2.16 $2.70 $2.58
========== ========== ========== ==========
Diluted earnings per
share:
Income from continuing
operations $1.63 $1.94 $2.55 $2.38
Income from discontinued
operations, net of
taxes .11 .17 .13 .15
---------- ---------- ---------- ----------
Net income $1.74 $2.11 $2.68 $2.53
========== ========== ========== ==========
Weighted-average shares
(basic) 9,024,190 8,669,661 9,009,133 8,641,965
========== ========== ========== ==========
Weighted-average shares
(diluted) 9,065,681 8,843,359 9,058,103 8,814,700
========== ========== ========== ==========
Cash dividends per share $.20 $.20 $.40 $.40
========== ========== ========== ==========
CONTACT: Ameron International Corporation
James S. Marlen
Chairman, President and Chief Executive Officer
Gary Wagner
Executive Vice President, Chief Operating Officer
James R. McLaughlin
Senior Vice President, Chief Financial Officer
626-683-4000