LB Foster Co. has announced a newly formed joint venture between LB Industries Inc., and the company. Together the partners have formed LB Pipe & Coupling Products, LLC, to manufacture couplings and accessories for the water well, oil country tubular goods (OCTG) and American Petroleum Institute (API) markets. LB Pipe & Coupling Products will occupy a manufacturing facility currently under construction in Magnolia, TX. The Texas facility is scheduled to be operational in January 2010. The new operation will install the latest technology available to manufacture high quality precision couplings.

LB Foster Co. reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company's net sales decreased 36.5% to $92.4 million compared to $145.6 million in the prior year quarter. Net income was $6.1 million or $0.60 per diluted share compared to net income of $8.1 million or $0.76 per diluted share in the third quarter of 2008. Cash generated from operations was approximately $7.2 million for the third quarter and $18.0 million for the first nine months of 2009. Capital expenditures were $2.5 million for the third quarter 2009 compared to $0.9 million in the prior year quarter. The increase is due to the purchase of land and preliminary construction of a building related to a joint venture the company entered into with Lally Pipe and Tube that will manufacture, market and sell various products in the utility and construction markets. EBIT was $9.8 million compared to $12.6 million for the same period a year ago. For the nine months, the company reported net income of $11.8 million or $1.15 per diluted share compared to net income of $22.1 million or $2.01 per diluted share in 2008. Net sales decreased 23.0% to $283.9 million compared to $368.8 million in 2008. EBIT was $18.8 million compared to $34.7 million for the same period a year ago.

L.B. Foster Company reported that third quarter 2009 net sales decreased 36.5% to $92.4 million compared to $145.6 million in the prior year quarter. Gross profit margin was 19.2%, an increase of 360 basis points from the prior year quarter primarily as a result of a favorable LIFO credit partially offset by negative variances caused by reductions in inventory values, increased unfavorable manufacturing variances and increased charges for slow moving and obsolete inventory. Cash generated from operations was approximately $7.2 million for the third quarter and $18.0 million for the first nine months of 2009. "All of our segments posted significant declines in net sales for the third quarter. Our manufacturing and yard operations continue to seek and implement cost reduction opportunities, but certain facilities cannot cover their fixed costs at these low volumes. Accordingly, we had further reductions in plant personnel and we implemented a reduction in our salaried workforce as well," stated Stan Hasselbusch, President and Chief Executive Officer. "We continue to anticipate that in 2009, we will generate positive cash flow in excess of our capital expenditures, debt service and share repurchases. We continue to have strong liquidity and access to credit and we continue to look for value through synergistic and accretive acquisitions."