Search Results for: L.B. Foster

L.B. Foster relocating water system tubular products facility

L.B. Foster Company is relocating its Threaded Products unit from Houston to a new manufacturing facility in Magnolia, Texas. This innovative plant will utilize advanced technology threading and conveyance equipment to increase production capacity and improve delivery scheduling. The Magnolia facility expands L.B. Foster’s ability to meet agricultural, municipal and industrial water well needs with quality water system tubular products and services. The new plant will also extend operating hours to better service existing and new regional markets.

The new threaded products plant is strategically located adjacent to L.B. Foster’s joint venture operation, LB Pipe & Coupling Products, LLC. The site also includes additional acreage for the storage and staging of pre-purchased inventory to accommodate Just-in-Time delivery to jobsites nationwide. The facility replaces L.B. Foster’s Langfield Road site in Houston, which began operations in 1963. The new plant is located north of Houston at 21270 FM 1488 in Magnolia, Texas. It is managed by L.B. Foster Threaded Products within the L.B. Foster Tubular Products Group.

L.B. Foster forms Friction Management business unit

Following L.B. Foster’s acquisition of Portec Rail Products, Inc. in mid December, 2010, the company has formed "a new business team focused on enhancing its global leadership position in wheel/rail interface solutions," L.B. Foster said today. The new organization is named L.B. Foster Friction Management.

Under the direction of Vice President, Global Kostas Papazoglou, L.B. Foster Friction Management "will combine the talents of the personnel of former Portec Rail Products, Inc. businesses located in Canada, the United States, the United Kingdom, China, and Australia into a single, worldwide team," the company said.

To support this initiative, L.B. Foster made the following management appointments in addition to Papazoglou:

Dr. Donald Eadie is Vice President Technology and Innovation focusing on mobile friction management application systems and consumables. He has responsibility for the company’s Centres of Engineering Excellence located at the Vancouver, Sheffield, and China sites. He will also work with the Vice President Technology and Business Development to lead the global technology team.

Dr. Kevin Oldknow is Vice President Technology and Business Development. He will focus on trackside friction management delivery systems and will have responsibility for the company’s Centres of Engineering Excellence at the Pittsburgh, Montreal and Australia sites. He will also be responsible for developing and implementing strategy along with the execution of business development and marketing activities.

Brian Vidler is Director Friction Management Technical Sales with responsibility to drive the growth needed to achieve the team’s strategic objectives. He will direct various activities of the technical sales resources with North American Class I railroads as well as in international markets and transit agencies globally.

Five other appointments were made to provide local leadership, management and coordination of inside/outside sales, customer service, production planning, accounting and field service as well as work closely with the engineering and technical sales functions. These include Steven Fletcher, General Manager, Vancouver; John Musser, General Manager, Pittsburgh; Mr. Gerry Clark, General Manager, Montreal; Mr. Peter Jones, Managing Director, UK and Mr. Gary Elliot, Commercial Director, UK.

"This team will rely on its world class wheel/rail interface expertise as a leading edge to create innovative, value based solutions to a growing global rail customer base, supported by industry recognized problem solving capabilities and applications specification and design competencies," said Papazoglou. "It will drive these solutions with products, technologies, project management, and performance verification to promote profitable revenue growth for L.B. Foster."

L.B. Foster

Stan L. Hasselbusch, president and chief executive officer of L.B. Foster Co., plans to retire on December 31, 2011. Hasselbusch joined the company in 1972 and held successfully progressing positions ultimately becoming president and CEO in 2002.

Lee B. Foster, Chairman of the Board, stated, "Stan has done an outstanding job during his long career with L.B. Foster and on behalf of the Board of Directors and all our employees I want to convey our sincere appreciation for so many significant contributions that have left an indelible mark on the Company. Stan indicated that he had been contemplating this move for some time and felt that the end of this year, with the Portec acquisition successfully integrated, would be the perfect time to make the move."

L.B. Foster Q1 earnings report: Net income down, sales up

L.B. Foster reported its 2011 first quarter operating results and although net income took a negative hit due to its acquisition of Portec Rail Products and the closing of its Grand Island, Neb., facility, sales and gross profit margins were up.

Stan L. Hasselbusch, L. B. Foster’s president and chief executive officer, said, "Our performance in the first quarter, which is traditionally our weakest quarter due to seasonality, was negatively impacted by expenses related to the acquisition of Portec Rail Products, Inc., and to our Grand Island facility. The most significant of these costs, a $2.5 million charge to gross profit, is a non-recurring expense that relates to the requirement to write-up inventory purchased in an acquisition to net realizable value, which takes most of the margin away when it is sold. This negative adjustment has been completely flushed through our results in the first quarter and will not impact us the rest of the year."

Hasselbusch went on to say, "Our margins were not where we wanted them as they were negatively impacted by the Grand Island shut down, a weak precast buildings performance and a disadvantageous sales mix as distribution sales increased by 25% while distribution margins declined by 120 basis points. With regard to the Portec acquisition, we have moved past an intense 120-day integration period and are planning to continue these efforts for the remainder of the year. We continue to see many promising opportunities in the friction management and Salient product lines and are excited about the long-term prospects for these businesses. As we move through 2011, we expect to continue to experience a highly competitive market environment and we also anticipate significantly extended delays before a new transportation bill is passed, but we are optimistic that the overall economy is improving. Our bookings and backlog are very strong and we expect this strength to be reflected in our results for the remainder of this year."

L.B. Foster results by the numbers:

• First quarter sales increased by $35.1 million or 42.8 percent due to a strong sales quarter by Portec Rail Products Inc., as well as a 14.4 percent sales increase in the legacy L.B. Foster business.

• Gross Profit margin was 14.9 percent, 20 basis points better than the prior year.
    o The Portec Rail Products business contributed a gross margin of 21.7 percent, which, as expected, included charges from purchase accounting related asset step-ups.
    o The legacy Foster margins were lower than the prior year due to a weak first quarter in our precast buildings division, as well as unabsorbed plant costs at our Grand Island, Neb., concrete tie facility as a limited amount of production was concluded in the first quarter and we began dismantling the equipment.

• Selling and administrative expense increased $6.5 million, principally due to the inclusion of the Portec Rail Products results.

• First quarter net income was $0.7 million or $0.07 per diluted share compared to $1.8 million or $0.17 per diluted share last year. Factors negatively impacting net income for this quarter were:
    o The recognition of expense related to the sale of Portec inventory that was written up to fair market value as of the acquisition date resulting in increased cost of goods sold of $2.5 million ($0.17 per diluted share).
    o Acquisition related amortization and depreciation of definitive-lived intangible and tangible assets stepped up to market value of $0.8 million ($0.06 per diluted share).
   o LIFO adjustments were $0.4 million ($0.03 per diluted share) unfavorable compared to the prior year.

• Adjusted EBITDA was $6.5 million compared to $5.0 million in the prior year quarter.

• First quarter bookings were $163.8 million compared to $106.1 million last year, an increase of 54.4 percent. Excluding Portec, bookings were 27.3 percent higher than last year. At quarter end, our backlog was $237.1 million, 15.8 percent higher than the prior year (4.9 percent without Portec).

L.B. Foster supplies 1,553 tons of rail for Iowa Interstate RR

L.B. Foster Company is supplying 1,553 tons of new rail to Iowa Interstate Railroad, LTD, for new track installation and spur improvements. A specially-equipped L.B. Foster work train will deliver approximately 80,000 linear feet of 115# standard continuous welded rail in May 2011 to an Iowa Interstate interchange.

The rail is manufactured and welded in lengths up to 1,600 feet by Steel Dynamics, Inc., at their Rail Products facility in Columbia City, Ind. and shipped on L.B. Foster’s company-owned weld train. SDI is a strategic partner of L.B. Foster and a supplier of quality welded cwr strings to the Pittsburgh-based rail products company.

"Maintaining our own weld trains helps to expedite cwr shipments from our supplier plants and provides better coordination of delivery to staging areas nationwide," said Jay Roach, L.B. Foster sales manager.

 

L.B. Foster awarded rail contract for CRANDIC track upgrade

L.B. Foster Company was awarded a contract by Cedar Rapids and Iowa City Railway to provide approximately 1,000 tons of 115# standard rail for the upgrade of aging track and for the construction of a new 10,000-ft. siding for a unit train interchange. An L.B. Foster weld train will deliver 54,450 linear feet of continuous welded rail in February 2011 for track rehabilitation as required for the upkeep of 60 miles of mainline rail and 40 miles of yard track. L.B. Foster Company has also provided 82,000-ft of CWR to the CRANDIC in 2009.

The new rail was manufactured in lengths of 240 feet by L.B. Foster’s strategic partner, Steel Dynamics, Inc., and then welded into 1,650-foot sections at their rail welding facility. The welding of rail strings began on January 24 and proceeded quickly to accommodate an expedited shipping schedule in early February. L.B. Foster personnel will coordinate the transport and unloading of the train to meet the ambitious delivery date.

"Managing a CWR shipment with our own company weld train allows L.B. Foster to expedite delivery and meet critical project deadlines," said Joe Mahoney, L.B. Foster regional sales manager.

L.B. Foster supplying 28,500 tons of cwr for NECR Vermont upgrade






L.B. Foster Company has begun delivering 28,500 tons
of 115-pound standard continuous welded rail to New England Central Railroad
(NECR), an operating subsidiary of RailAmerica, Inc., for upgrading
approximately 140 miles of  track. L.B. Foster’s specially-equipped cwr
trains will complete 18 shipments of welded rail by mid-2011 for installation
at various locations throughout Vermont.

L.B. Foster extends subsequent offering period for shares of Portec Rail

L.B. Foster Company said that its wholly-owned subsidiary, Foster Thomas Company, has extended its cash tender offer for all outstanding shares of common stock of Portec Rail Products, Inc., until 5:00 p.m., New York City time, on December 22, 2010. The tender offer was previously set to expire at 5:00 p.m., New York City Time on December 21, 2010.

As of December 21, 2010, approximately 991,424 shares of common stock had been tendered in the subsequent offering period and Foster Thomas Company has accepted for payment all tendered shares. Foster Thomas Company now owns approximately 8,622,393 Portec Rail shares, representing approximately 89.78 percent of Portec Rail outstanding shares.

L.B. Foster completes tender offer for Portec Rail Products

L.B. Foster Company said that the United States District Court for the District of Columbia signed the Hold Separate Stipulation and Order and that L.B. Foster’s direct wholly-owned subsidiary, Foster Thomas Company, has completed its cash tender offer for Portec Rail Products, Inc.

The tender offer for all of the outstanding shares of Portec expired at 5:00 p.m., New York City time, on December 15, 2010. As of that time, the depositary for the offer advised that approximately 7.63 million shares, representing approximately 79.46 percent of Portec Rail’s outstanding shares, were validly tendered and not withdrawn in the offer. Foster Thomas Company has accepted for payment all validly tendered shares.

Foster Thomas Company is providing a subsequent offering period, which will expire at 5:00 p.m., New York City time, on December 21, 2010, unless the subsequent offering period is further extended. During this subsequent offering period, Portec Rail stockholders who did not previously tender their shares of common stock in the offer may do so and will promptly receive the same $11.80 per share as was paid during the initial offering period.

L.B. Foster extends tender offer for Portec Rail Products, Inc.






L.B. Foster Company is
extending its previously announced cash tender offer, through its wholly-owned
subsidiary Foster Thomas Company, for all outstanding shares of common stock of
Portec Rail Products, Inc., until 5:00 p.m., New York City time, on December
15, 2010. The tender offer was previously set to expire at midnight, New York
City Time on November 15, 2010.


L.B. Foster Company extends tender offer for Portec Rail Products, Inc.






L.B. Foster Company said
it is extending its previously announced cash tender offer, through its
wholly-owned subsidiary Foster Thomas Company, for all outstanding shares of
common stock of Portec Rail Products, Inc., until 12:00 midnight, New York City
time, on November 15, 2010. The tender offer was previously set to expire at midnight,
New York City Time on September 30, 2010.


L.B. Foster extends tender offer for Portec Rail Products

L.B. Foster Company said it is extending its previously announced cash tender offer, through its wholly-owned subsidiary Foster Thomas Company, for all outstanding shares of common stock of Portec Rail Products, Inc., until 12:00 midnight, New York City time, on August 30, 2010. The tender offer was previously set to expire at midnight, New York City time on August 16, 2010.


L.B. Foster supplying 24,000 CXT® concrete ties for Calgary transit extension






CXT, Inc., a wholly owned
subsidiary of L.B. Foster Company of Pittsburgh, Pa., has been awarded a
contract by City of Calgary Light Rail Transit to supply 14,500 CXT Concrete
Ties and fastening systems for use in the construction of line extensions to
expand the system to the northwest and northeast of Calgary, Alberta. CXT concrete
ties began shipping for this project in June from L.B. Foster’s Spokane, Wash.,
facility and will complete delivery by November 2010.

L.B. Foster awarded $5.3-million Maine rail contract






L.B. Foster Company Pittsburgh,
Pa., was awarded a $5.3-million contract by the Northern New England Passenger
Rail Authority (NNEPRA) to supply 5,561 tons of rail for the
Downeaster-Portland North Project. NNEPRA is using a $35-million grant from the
American Recovery and Reinvestment Act to help fund the project’s 26.4-mile
track rehabilitation and expansion between Portland and Brunswick, Maine. The
new Downeaster line will offer improved Amtrak service within the area and
south to Boston.

L.B. Foster Company extends of tender offer for Portec Rail Products






L.B. Foster Company said
that it is extending its previously announced cash tender offer, through its
wholly-owned subsidiary Foster Thomas Company, for all outstanding shares of
common stock of Portec Rail Products, Inc., until 12:00 midnight, New York City
time, on August 16, 2010. The tender offer was previously set to expire at midnight,
New York City Time on July 30, 2010.


Preliminary injunction dissolved on L.B. Foster proposed acquisition of Portec Rail






February 14, 2001

L. B. Foster said that the
Court of Common Pleas of Allegheny County, Pennsylvania has dissolved the
preliminary injunction issued on April 21, 2010, which had enjoined the
completion of L.B. Foster’s tender offer for Portec Rail Products, Inc. Stan Hasselbusch,
L.B. Foster’s chief executive officer, commented, "We are pleased that
this obstacle to L.B. Foster’s acquisition of Portec Rail has been
removed."

L.B. Foster, Portec Rail enter into timing agreement with DOJ






L.B. Foster Company and
Portec Rail Products, Inc., said that both companies have entered into a timing
agreement with the Antitrust Division of the Department of Justice pursuant to
which L.B. Foster and Portec Rail have agreed, subject to certain conditions,
that they will not consummate L.B. Foster’s acquisition of Portec Rail before
July 16, 2010, without the Antitrust Division’s consent.

L.B. Foster, Portec Rail Products receive second request from DOJ






L.B. Foster Company and
Portec Rail Products, Inc., said that they have each received a formal second
request for additional information and documentary material from the Antitrust
Division of the Department of Justice regarding the Agreement and Plan of
Merger dated February 16, 2010 pursuant to which L.B. Foster proposed to
acquire Portec through a tender offer and subsequent merger.

L.B. Foster supplies concrete ties for EGT Columbia River Grain Terminal






CXT, Inc., a
wholly owned subsidiary of L.B. Foster Company, has been awarded a contract by
West Rail Construction to supply 23,000 concrete rail ties for the unloading
system at EGT’s Columbia River Grain Terminal. CXT plans to start shipment of
ties from its Spokane manufacturing plant to the new Longview, Wash., riverside
facility in February.