Universal Stainless & Alloy Products Inc. of Bridgeville this morning revised its guidance for its third-quarter earnings, lowering its sales projections to about $57 million to $58 million, and earnings per share to 35 cents to 40 cents a share.
The revised guidance includes a charge of $586,000, or 6 cents per share, for relocating a round bar finishing facility from Bridgeville to Dunkirk, N.Y.
Universal Stainless, which makes semi-finished specialty steel products, had projected in July that its third-quarter sales would be in the range of $60 to $65 million and earnings per share of between 70 cents and 75 cents, after including the estimated relocation charge.
The company's sales from its Dunkirk plant were $2 million lower than expected because of lower shipments of aerospace products to service centers as a result of the strike at Boeing Co., Universal CEO Dennis Oates said. Shipments from the Bridgeville plant were lower than forecast last month because of production inefficiencies that coincided with its labor negotiations with the United Steelworkers Local 9531, Oates said.
The 220 steelworkers at the plant on Tuesday approved a new five-year labor contract, effective immediately, that provides for wage increases, maintains a defined contribution pension plan. The agreement, which replaces a pact that expired Aug. 31, keeps flexible work rule terms and profit sharing incentives contained in the prior agreement, the company said.
Universal intends to report final third quarter results on Oct. 23.
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