AGY says the global economic downturn and the lower inventory levels of customers were the main reasons for the fall in sales.

Revenue from the electronics, construction and industrial markets was down 67%, 49% and 33%, respectively, from that of the 2008 quarter. Aerospace sales were down 22%. However, defence revenue increased by 46% when compared to the first quarter of 2008.

AGY reports a net loss of $2.7 million for the first quarter (Q1) of 2009 (ended 31 March 2009).

“As with many companies, AGY is facing a challenging business environment,” says Doug Mattscheck, AGY’s Chief Executive Officer. “In the first quarter of 2009, we experienced soft demand across most of our markets and regions and a necessity by our customers to reduce inventory levels. The weak economy and market uncertainty have led to shorter order cycles, which limits our view of the future."

Mattscheck expects current market conditions to continue into at least the second half of the year. He notes that the company has taken a number of steps to reduce its cost structure and adjust production levels in light of current market demand.

Headquarted in Aiken, South Carolina, AGY produces of glass fibre yarns and high-strength glass fibre reinforcements used in a variety of composites applications in the aerospace, defence, electronics, construction and other markets.

AGY financial results Q1 2009 (millions of $).
 Q1 2009Q1 2008
Net sales39.658.0
Income from operations0.34.3
Net loss2.71.3
EBITDA*4.07.7
Adjusted EBITDA8.810.7

*EBITDA = earnings before interest, taxes, depreciation and amortisation.