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Universal Stainless & Alloy Products reports that sales for the second quarter of 2012 were US$67.9 million, an increase of 7% from the second quarter of 2011 but 9% below the 2012 first quarter.

 

Operating income for the second quarter of 2012 was US$7.3 million, a decline of 14% from the second quarter of 2011 and 25% below the 2012 first quarter. Operating income was 10.8% of sales in the second quarter of 2012 compared with 13.4% in the second quarter of 2011 and 13.0% of sales in the 2012 first quarter.

For the second quarter of 2012, the Universal Stainless & Alloy Products segment, including the North Jackson operation, had sales of US$61.8 million and operating income of US$4.5 million, with an operating margin of 7.2% of sales. In the second quarter of 2011, sales were US$60.4 million and operating income was US$6.4 million, or 10.7% of sales. For the first quarter of 2012, sales were US$60.3 million and operating income was US$5.8 million, or 9.6% of sales.

“Despite continued end market strength, we experienced changes in our customers' buying patterns as the second quarter progressed,” said chairman, president and CEO, Dennis Oates. "Falling raw material prices and the prospect of lower future surcharges combined with growing economic caution influenced customers to reduce their order quantities, negatively impacting our shipment volume, order entry and backlog.”