L.B. Foster's first-quarter profit doubles on higher billing

Shares of L.B. Foster Co., which provides services and products for rail, construction and energy markets, plummeted 20 percent Thursday after it posted a big drop in revenue.

The steel company said its net income for the three months ended March 31 rose to $6.3 million, or 57 cents per share, from $3.1 million, or 29 cents per share.

Excluding a gain from selling an asset, the company had adjusted earnings per share of 36 cents, a 29 percent gain over the year-earlier period.

Foster credited increased billing margins, manufacturing cost improvements and lower warranty expenses for the results.

However, revenue fell 15.6 percent to $93.4 million from $110.7 million in the year-earlier period.

Other key metrics fell, too, said Sidoti & Co. LLC analyst James Bank, noting the company's order backlog declined 11 percent and its bookings fell 23 percent.

"Basically the environment is deteriorating. They are putting their hopes on expanding gross margins, but I don't think it's going to happen," the analyst said.

Shares fell $9.95, or 22.3 percent, to $35.10 in morning trading.