Zoltek, one of the large manufacturers of carbon fiber products saw its first quarter profit fall 80%. By the end of the quarter they brought in $535,000, compared to $2.6 million a year before.
The huge drop had to do with customers postponing or canceling orders. Yearly sales were down 4% from $40.1 million to $38.6 million. This caused an increase in inventory on Zoltek’s end, gaining almost $8 million from Sep 30th to Dec 31st.
Zoltek had expected a slowdown, especially with the economy in a recession, but these numbers are worse than planned. While Zoltek’s numbers are down, they believe it just represents a temporary lull. They believe there is still long-term demand from commercial application for low-cost carbon fiber. Zoltek trades on the NASDAQ under the symbol ZOLT.
[Source: St. Louis Business Journal]