Headwaters Profit Jumps

Revenue rises 21%.
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Headwaters

(HW)

said its second-quarter earnings rose 84% from the year-ago period.

The South Jordan, Utah-based company earned $18.4 million, or 40 cents a share, in the quarter, compared with $10 million, or 26 cents a share, a year ago. Adjusted earnings were 55 cents a share in the most recent quarter. Analysts surveyed by Thomson First Call were expecting earnings of 44 cents a share.

Second-quarter revenue rose 21.3% from a year-ago period to $269.7 million as against analysts' expectation of $255 million.

"Our quarterly performance continues to be strong with exceptional revenue growth and continues to mark our transition away from Section 29. The consolidated operating margins were impacted by the lack of recognition of license fees and inefficiencies within our construction materials segment. We remain hopeful that uncertainty surrounding the Section 29 issue will be resolved in the near term,'' the company said.

Second-quarter operating income rose 5% from a year-ago period to $37.7 million, but operating margin declined 216 basis points to 14%.

By segment, second-quarter revenue from construction materials segment rose 20.6% to $131.7 million and from coal combustion products segment it rose to $58.5 million. Revenue from alternative energy segment increased 22.7% to $79.5 million.

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