Ameron International Corporation said that it plans to trim down its previous forecast for 2011 to between USD 1.75 and USD 2.25 per share, though the figure is still above analyst estimates of USD 1.55 per share.

The California based company, which manufactures materials for the chemical, industrial, energy, transportation and infrastructure markets, said the reduced estimate is due to a slow start during the first five months, as well as increasing competition.

Mr James S Marlen president & CEO of Ameron International Corporation said that "We cautioned in January that the year was starting slowly and earnings expectations were dependent on improvements in construction related markets. Such improvements have not materialized to date."

The company's construction related businesses, such as its water transmission and infrastructure groups, are also expected to fall short of expectations, due to winter weather and low sales of wind towers and water pipes.

Additionally, project setbacks and events such as the unrest in the Middle East are expected to limit the company's fibre glass composite unit from offsetting the other two declining divisions.

In the first quarter, the fiberglass unit saw weaker earnings due to a shift away from higher margin marine and offshore projects, to lower-margin onshore oilfield markets. Profits were also impacted by competitive pressures and higher raw material costs, and upside potential is expected to be further limited by recent sanctions on sales to customers in Libya. However, the division is still expected to perform well for the balance of the year due to high energy prices.

The company said it could make a minor profit in the second quarter ending May 29th 2011, based on results thus far. Ameron has operations in North America, South America, Europe and Asia.