Alloy Steel International Inc, the manufacturer of Arcoplate and provider of anti wear and hang up solutions to the mining and bulk materials industries, has announced results for the fiscal year ended September 30th 2011 and the fourth quarter, ended September 30th 2011.

For Q4 2011, total sales were USD 7.5 million as compared to USD 8.8 million in the quarter ended September 30th 2010. These sales consist solely of the company's Arcoplate products. Income before tax for Q4 2011 was USD 1.0 million or USD 0.06 per common share as compared to income before tax of USD 2.7 million or USD 0.16 per common share for Q4 2010. Net income after tax was USD 0.6 million, or USD 0.04 per common share, for Q4 2011, compared to income after tax of USD 1.9 million, or USD 0.11 per common share, for Q4 2010.

For fiscal year 2011, total sales were USD 22.0 million as compared to USD 24.5 million for fiscal year 2010. Income before tax for fiscal year 2011 was USD 3.3 million or USD 0.19 per common share, compared to income before tax of USD 7.3 million or USD 0.42 per common share for fiscal year 2010. Net income after tax was USD 2.4 million or USD 0.14 per common share, for fiscal year 2011 as compared to income after tax of USD 4.8 million or USD 0.28 per common share, for fiscal year 2010.

For Q4 2011, sales were 15% lower than Q4 2010. This reduction in sales comparing quarter upon quarter reflects the adverse effect of Australian domestic business conditions, which to a significant degree, resulted from poor government policy making in the onshore manufacturing sector. The reduction in Gross Margin from 46% to 39% for Fiscal Year 2011 compared to Fiscal Year 2010 is largely attributed to increase in wages and other employee related costs; a change in depreciation estimate; a reduction in the proportion of processed and finished product included in sales resulting in a changed sales mix for the year; as well as the continued strength of the Australian dollar against the US Dollar.

Mr Barry Woodhouse CFO of Alloy Steel said that "The company has had a disappointing yearly result when compared to its record 2010 fiscal year with a reduction in annual sales of 10% and a reduction in gross profit of 24%. The company faced difficult domestic trading conditions in the first three quarters of the fiscal year and this was exacerbated by the trend to lower margin products with customers going offshore for fabricating and finishing. The board has addressed these issues and will continue to do so throughout the 2012 financial year as it strives to expand its manufacturing capacity within the constraints of its cash flow."