Attached files
Exhibit 99.1
[ZOLTEK logo]
FOR IMMEDIATE RELEASE
---------------------
ZOLTEK REPORTS FOURTH QUARTER AND
---------------------------------
FISCAL 2010 YEAR-END RESULTS
----------------------------
ST. LOUIS, MISSOURI -- NOVEMBER 29, 2010 -- Zoltek Companies, Inc.
(Nasdaq: ZOLT) today reported results for the fourth quarter and full fiscal
year ended September 30, 2010.
For the fourth quarter of fiscal 2010, Zoltek reported net sales of
$31.1 million, which compared to $33.8 million in the fourth quarter of fiscal
2009, a decrease of 8%. Zoltek reported an operating loss of $1.9 million for
the latest quarter, included the negative effect of $2.3 million in available
unused capacity costs. In the fourth quarter of the previous fiscal year,
Zoltek reported an operating loss of $1.9 million and $3.0 in available unused
capacity costs.
For fiscal 2010 as a whole, Zoltek's net sales were $128.5 million,
compared to $138.8 million in fiscal 2009, a decrease of 7.4%. Zoltek reported
an operating loss of $10.6 million for the year just ended, compared to
operating income of $3.4 million in fiscal 2009. Zoltek also reported net cash
provided by operating activities of $22.0 million in fiscal 2010, up from
$15.2 million in fiscal 2009, an increase of 44.7%.
"During the past year, our largest customer in the wind energy
business decided to close several wind turbine plants in Europe and to shift
productive capacity to new locations in the United States and Asia. That led
to a temporary decline in our sales to this customer for the fourth quarter
and fiscal 2010 as a whole. Although our revenue declined, measured in tons
rather than dollars, Zoltek's shipments of carbon fibers actually increased by
9% in fiscal 2010 compared to fiscal 2009," Zsolt Rumy, Zoltek's Chairman and
Chief Executive Officer, said. "We also have come through an extremely
difficult period in world markets in good financial condition - with a strong
positive cash flow and with near zero long-term debt."
"The decline in our reported net sales reflected unfavorable currency
fluctuations, but more importantly lower selling prices due to irrational
pricing conditions in the carbon fiber industry. Nevertheless, we are
disappointed that we didn't bounce back with strongly improved sales in fiscal
2010 as we expected at the beginning of the year. We have strengthened our
global marketing activities, expanded our customer base and enhanced our
product technology and product line offering during fiscal 2010 and we are
confident that we are positioned to capitalize on identified growth
opportunities in fiscal 2011," Rumy said.
"Using Zoltek carbon fibers, Vestas, our biggest customer, took an
early lead in the design and build of the world's largest and most efficient
wind turbines. Over the past two years, there has been a great deal of
progress in China, India and other places as high-tech companies in those
countries have moved in the same direction of larger and more efficient wind
turbines. Wind energy is continuing to go global and entering a new phase of
rapid growth. We believe that Zoltek's Panex(R) carbon fibers are a key
enabling technology for the cutting-edge segment of the market," Rumy said.
[ZOLTEK logo]
Zoltek Reports Fourth Quarter And Fiscal 2010 Year-End Results
Page 2
November 29, 2010
------------------------------------------------------------------------------
While Zoltek's sales are benefiting from new applications and
existing markets are growing, our highest and most immediate potential is in
the wind power generating application. We produce the significant majority of
the high-performance commercial carbon fibers used in the superlong blades
that power the most advanced wind turbines. A new generation of carbon
fiber-enabled wind turbines is replacing the older generation technology that
relied on shorter blades reinforced with glass fibers. For all these reasons,
we are convinced that Zoltek is on the threshold of a new era of accelerated
growth.
Zoltek will host a conference call to review fourth quarter and
fiscal year-end 2010 results and answer questions on Tuesday, November 30,
2010, at 10:00 am CT. The conference dial-in number is (888) 299-7208. The
confirmation code is 3544027. Individuals who wish to participate should dial
in 5 to 10 minutes prior to the scheduled start time. This conference call
will also be webcast on Zoltek's website - www.zoltek.com - under "Investor
Relations - Events & Presentations." The webcast replay will be available on
the website several hours after the call.
FOR FURTHER INFORMATION CONTACT:
ZSOLT RUMY, CHAIRMAN AND CEO
3101 MCKELVEY ROAD
ST. LOUIS, MO 63044
(314) 291-5110
This press release contains certain statements that constitute "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The words "expect," "believe," "goal," "plan," "intend," "estimate,"
and similar expressions and variations thereof are intended to specifically
identify forward-looking statements. Those statements include statements
regarding the intent, belief or current expectations of us, our directors and
officers with respect to, among other things: (1) our financial prospects; (2)
our growth strategy and operating strategy, including our focus on
facilitating acceleration of the introduction and development of mass market
applications for carbon fibers; and (3) our current and expected future
revenue.
This press release also contains statements that are based on the current
expectations of our company. You are cautioned that any such forward-looking
statements are not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from those
projected in the forward-looking statements as a result of various factors.
The factors that might cause such differences include, among others, our
ability to: (1) successfully adapt to recessionary conditions in the global
economy and substantial volatility in order rates from our wind energy
customers; (2) penetrate existing, identified and emerging markets, including
entering into new supply agreements with large volume customers; (3) continue
to improve efficiency at our manufacturing facilities on a timely and
cost-effective basis to meet current order levels of carbon fibers; (4)
successfully add new planned capacity for the production of carbon fiber and
precursor raw materials and meet our obligations under long-term supply
agreements; (5) operate profitably; (6) increase or maintain our borrowing at
acceptable costs; (7) manage changes in customers' forecasted requirements for
our products; (8) continue investing in application and market development for
a range of applications; (9) manufacture low-cost carbon fibers and profitably
market them despite fluctuations in raw material and energy costs; (10)
successfully operate our Mexican facility to produce acrylic fiber precursor
and carbon fibers; (11) successfully continue operations at our Hungarian
facility if natural gas supply disruptions occur; (12) successfully prosecute
patent litigation; (13) successfully facilitate adoption of our carbon fibers
by the auto industry for use in high-volume applications; and (14) manage the
risks identified under "Risk Factors" in our filings with the SEC. Because
forward-looking statements are inherently subject to risks and uncertainties,
some of which cannot be predicted or quantified, you should not rely upon
forward-looking statements as predictions of future events. The events and
circumstances reflected in the forward-looking statements may not be achieved
or occur and actual results could differ materially from those projected in
the forward-looking statements.
