Not Surprisingly, ORN Reduces Outlook

Hopefully this news was fully priced in (if not overly discounted), but the company reduced its outlook for sales for 2010 to $360mm-$370mm (about 10%).  Operating margins are expected in the same 16-18% range, as the company is sticking to its pricing discipline despite some apparent aggressive pricing that is costing them business on the East Coast.  For the quarter, sales were light, but EPS came in slightly stronger than expected.  The stock seems due for a bounce (sell the rumor, buy the news).  I continue to expect the stock to perform well over the next several years as the Panama Canal widening drives signficiant port expansions to accomodate larger ships.