Ameron International Corporation, 50% owner of Southern California mini mill rebar producer TAMCO, reported a drop in third quarter profits, which the firm says was largely due to the significant decline in demand for steel rebar in the western US.
Net income of Ameron International Corporation fell to USD 5.9 million as compared to USD 15 million earned in the third quarter of 2008. Sales were down by 23% YoY.
Mr James Marlen chairman of Ameron International Corporation said that "The earnings decline in the quarter can be attributed equally to the decline in core businesses and to the challenging market conditions experienced by TAMCO. While TAMCO's quarterly net loss was lower than earlier in 2009, the year over year decline was significant."
Ameron said in a release that demand for steel rebar in TAMCO's key markets in the western US is not expected to recover in the short term, adding that the business has not experienced any increase in demand associated with the federal economic stimulus package or had any indications of higher state and local governmental spending on infrastructure projects. In addition, commercial construction remains at the lowest level in years.
