UPDATE 1-Universal Stainless Q1 results beat view, shipments up

Wed Apr 28, 2010 8:12am EDT

* Q1 EPS $0.21 vs est. of $0.16

* Q1 revenue down 18 percent

* See higher Q2 results

April 28 (Reuters) - Universal Stainless & Alloy Products Inc (USAP.O) posted first-quarter earnings that topped market view on a jump in shipment volumes amid restocking in its supply chain.

The company also said it sees a sequential growth in second quarter results, aided by a 47 percent rise in backlog and indications that restocking would continue.

"Restocking was most evident in the continued growth of our shipments of service center plate, as sharp recovery in auto production has caused service centers to further replenish their plate inventory after several quarters of heavy destocking," Cheief Executive Dennis Oates said.

In the latest quarter, the company posted a net income of $1.4 million, or 21 cents a share, compared with net loss of $3.8 million, or 57 cents a share, a year ago.

Revenue for the quarter dropped 18 percent to $34.7 million.

Analysts, on average, were looking for earnings of 16 cents a share, before items, on revenue of $29.9 million, according to Thomson Reuters I/B/E/S.

Shares of the company closed at $23.79 Wednesday on Nasdaq. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Jarshad Kakkrakandy)

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