Published Nov. 15, 2012
AGY Holding Corp. reported consolidated net sales dropped 15.2% to $39.5 million in the third quarter of 2012 compared with totals posted for the same period a year ago.
Sales were down $7.1 million for the quarter, the Aiken-based firm said. For the same period a year ago, AGY reported sales of $46.6 million.
For the first nine months of 2012, total sales slipped to $133.1 million compared with $141.5 million for the same period a year ago.
The loss for the quarter widened to $20.4 million, compared with a loss of $7.6 million in the year-earlier quarter. For the nine months, the loss was $33.7 million, compared with a year-earlier loss of $21.1 million.
The decrease in U.S. sales was driven by lower demand primarily in the electronics market, which remained depressed, the company said.
Weak market conditions and global economic uncertainty have prompted customers to reduce inventory holdings in the supply chain of key applications, AGY said.
Although sales in the defense market decreased year over year due to fewer international structural armor programs, it remained above the company’s expectations on a year-to-date basis, the company added.
The aerospace market remained robust through the third quarter of 2012, with an ongoing bias toward lighter-weight interior materials, AGY said.
“Operationally, we continue to realize cost and efficiency improvements while adjusting capacity to meet current demand levels,” said Richard Jenkins, interim CEO.
AGY is a producer of fiberglass yarns and high-strength fiberglass reinforcements used in a variety of composites applications.