Ladish falls to 2-year low after 1Q profit misses views

NEW YORK—Shares of metal parts maker Ladish Co. hit their lowest point in nearly two years Tuesday, after the company reported first-quarter earnings that missed Wall Street's expectations.

The Cudahy, Wis.-based company's profit rose 4 percent to $6 million, or 41 cents per share, from $5.8 million, or 40 cents per share, in the year-ago quarter.

Sales rose 20 percent to $117.2 million, from $97.7 million a year earlier.

Analysts polled by Thomson Financial, on average, were expecting a much higher profit of 57 cents per share on revenue of $128.4 million.

The company attributed the shortfall to higher employment and energy costs, severe weather and rising raw materials prices.

Stifel Nicolaus analyst Stephen Levenson maintained his "Buy" rating on the stock, but warned his $65 price target and earnings predictions are under review.

Levenson said he is looking for the company's management to provide details on how Ladish will better its operations, including its capacity expansion and margin improvements, "before suggesting that investors should step up."

Ladish shares plunged $4.13, or 12.5 percent, to $28.92, after hitting a two-year low of $26.89 earlier in the session.