Zoltek turns loss to profit in H1

ZOLTEK COMPANIES Inc. of St. Louis, Missouri, USA turns red to black in the first six months of its 2008 fiscal year with a net profit of US$ 6.9 million compared to a net loss of $5.7 million for the same period in 2007.

Net sales are up 33.8% to $89.7 million, and operating income from continuing operations has increased 47.6% to $13.1 million.

Of Zoltek’s operating segments, Carbon Fibres remains Zoltek’s biggest division with net sales of $76 million, up 51%, and operating income more than doubling to $18.2 million.

Technical Fibres net sales increased 34% to $11.6 million, whereas operating income dropped 76% to $942000. Corporate/Other’s operating loss widened 61% to $6 million despite a 66% increase in net sales to $2.1 million.

“The fundamentals of our business have not changed, as reflected both in our sales and earnings. We expect the growing demand for our low-cost, high-performance carbon fibres to continue in the long-term,” says Zsolt Rumy, Chairman and Chief Executive Officer at Zoltek.

Zoltek says the H1 results are preliminary following the announcement in early May that the company’s financial statements for the fiscal year ended 30 September 2007 and the fiscal quarter ended 31 December 2007 cannot be relied upon. The statements contain errors due to two fund transfers from a Zoltek subsidiary amounting to $250 000, which were not properly authorised or recorded. The board’s Audit Committee has commenced an investigation.

Zoltek’s Chief Financial Officer, Kevin J. Schott left the company on 2 May, and Andrew W. Whipple has subsequently been appointed new Chief Accounting Officer responsible for accounting, financial reporting and internal control.

Zoltek; www.zoltek.com

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