Zoltek reports third quarter results

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Zoltek Companies Inc: key figures for the first nine months of 2012 (thousand $, unaudited).
Nine months ended 30 June
2012 2011
Net sales 142,138 108,554
Operating income (loss) 20,322 (5,740)
Net income (loss) 18,607 (8,130)


Zoltek’s net revenues for the quarter ended 30 June 2012 were US$48.1 million, an increase of 24.6% on the third quarter of fiscal 2011, an increase of 24.6%.

Zoltek reports net income of $5.6 million in this year’s third quarter, compared to a net loss of $1.5 million in the third quarter of fiscal 2011. 

On a sequential quarter basis, third quarter fiscal 2012 net sales increased $1.1 million from second quarter fiscal 2012 net sales. The Company also saw increases in operating income and net income compared to the second quarter of the current fiscal year.

For the first nine months of fiscal 2012, Zoltek’s net sales were $142.1 million, a gain of 30.9% on the first nine months of fiscal 2011. Zoltek reports net income of $18.6 million for the first nine months of the current year, which compares to a net loss of $8.1 million ($0.24 per share) in the corresponding period of fiscal 2011.

“Zoltek had another strong quarter – our fourth consecutive quarter of positive earnings and over 30% year-on-year sales growth,” notes Zsolt Rumy, Zoltek’s Chairman and CEO.

In building the blades for the offshore environment, carbon fibre is a must. Simply put, there is no other lightweight material that can provide the strength, stiffness and performance that is needed to do the job.
Zsolt Rumy, Zoltek Chairman and CEO

“Wind turbine applications continue to represent our biggest near-term growth opportunity. Zoltek is the primary supplier of carbon fibre used in the largest and most advanced wind turbines – with the capacity to produce over 3 MW electricity annually – and this is where demand is growing the fastest. We expect this trend to accelerate due to development of offshore wind farms. Offshore turbines will effectively remove restrictions on blade lengths."

Rumy noted that Danish wind turbine maker Vestas – the biggest single customer of Zoltek’s carbon fibres – reported that its backlog of firm and unconditional orders amounted to €10 billion (or $12.3 billion) at 31 March 2012, the highest backlog in Vestas’ history and equal to 1.4 times its 2011 revenue.

“We have also successfully completed credit facilities in the US and Hungary that will provide sufficient financial resources to continue our investment in growing our capacity and driving down production costs, as well as supporting our value added product manufacturing and development of emerging applications in automotive, oil exploration and deep-sea drilling and secondary aircraft structures," Rumy says.

"Our financial condition positions us to continue our revenue growth trends in fiscal 2013. The fundamentals of the world market for advanced wind turbines and the carbon fibres that enable them remain strong, despite concern over extension of alternative energy tax credits in the US.”