NEW YORK Universal
Stainless & Alloy Products Inc. expects operating earnings
and net income to be at "breakeven level" in the first quarter
on sales of approximately $49 million.
"While our first-quarter sales
increased 4 percent on 8-percent-higher shipment volume
compared with the 2012 fourth quarter, production activity
levels remain well below normal, reducing our margins,"
Universal chairman, president and chief executive officer
Dennis Oates said in a statement. "In addition, our operating
costs now reflect increased depreciation expense related to our
North Jackson, Ohio, facility, with equipment commissioning
there now being essentially complete."
The company expects "meaningful
market demand" to return gradually as the year progresses. "In
the meantime, we are beginning to receive customer approvals
for our VIM-melted products, which is an essential step to
realizing the substantial potential of North Jackson and to
shift the mix of our sales toward higher-margin premium
alloys," Oates said.
The Bridgeville, Pa.-based
company is scheduled to report its first-quarter results May
Universals sales declined
24.2 percent and its net income dropped 74.6 percent in the
fourth quarter of 2012 (
amm.com, Jan. 29).