Zoltek FY Q2 Misses; Blames Weakness In Wind Sector

Zoltek (ZOLT), which makes carbon fibers used in wind turbines and other applications, posted weaker-than-expected results for its fiscal second quarter ended March 31.

For Q2, the company reported revenue of $36 million, down 27% from a year ago, and below the Street consensus at $37.3 million. Profits of a penny a share were well below the Street consensus at 9 cents, and down from 13 cents a year ago.

In a statement, CEO Zsolt Rumy said the company was “disappointed” with the company’s first half performance. He said that the wind sector has been hurt by “the uncertainty of the financial support by the U.S. government.” He adds that “new wind farm activity has slowed as developers, wind turbine equipment manufacturers and their financing sources are waiting to see what government benefits can be expected.” Rumy said “project cancellations are very uncommon,” but that some are on hold until the economic uncertainties are clearly up.

ZOLT today is down 83 cents, or 10.3%, to $7.20.