PASADENA, Calif.–(Business Wire)–
Ameron International Corporation (NYSE:AMN) today reported net income of $9.5
million, or $1.03 per diluted share, in the quarter ended May 30, 2010, compared
to net income of $9.4 million, or $1.02 per diluted share, in the quarter ended
May 31, 2009. Consolidated sales increased to $136.5 million in the second
quarter of 2010, compared to $132.9 million in the second quarter of 2009 and
$109.0 million in the first quarter of 2010.

James S. Marlen, Ameron`s Chairman, Chief Executive Officer and President,
stated, “We are encouraged by the second-quarter sales increase and the level of
profitability, especially given the difficult market conditions and the weakness
of the first quarter. Overall, improvements by Fiberglass-Composite Pipe and
TAMCO, the Company`s 50%-owned steel mini mill in Southern California, were
offset by declines of the other construction-related businesses, which continued
to be affected by cyclically weak markets. Second-quarter net income was flat in
2010, compared to 2009, due partly to unprofitable wind tower operations and the
lack of income from affiliates.”

Year-to-date net income totaled $10.6 million, or $1.15 per diluted share, in
2010, compared to $13.3 million, or $1.43 per diluted share, in 2009. Sales for
the first six months of 2010 totaled $245.6 million, compared to $278.9 million
in 2009.

The Fiberglass-Composite Pipe Group`s second-quarter sales of $64.7 million and
segment income of $17.8 million were up 16% and 8%, respectively, higher in 2010
than in 2009. Second-quarter sales increased in key oilfield and mining markets
in North and South America. Marine and offshore energy exploration and
production markets remained strong, sustained by new vessel construction at
Asian shipyards. In Brazil, sales growth came from the municipal water markets
and from the new Centron operation which began production of oil field piping in
the latter part of 2009. Most of the Group`s worldwide, consolidated operations
had higher profits. Income related to dividends from an affiliated company in
Saudi Arabia of $2.2 million in 2009 did not repeat in 2010. Looking forward,
the Fiberglass-Composite Pipe Group is on track with the prior year and
continues to see signs of improvement due primarily to higher energy-related
demand.

The Infrastructure Products Group had lower sales and segment income in the
second quarter of 2010 due to the impact of continued soft economic conditions
on residential and commercial construction markets. The Hawaii Division`s sales
and segment income were lower in 2010, compared to 2009; Pole Products` segment
income improved on flat sales. The Group`s combined sales declined $4.5 million,
or 13%; while combined segment income declined $.7 million, or 23%. Pole
Products benefitted from lower costs and higher sales of concrete poles for the
replacement market. Sales of steel poles and concrete poles for new construction
projects remained sluggish. Demand for aggregates and ready-mix on both Oahu and
Maui fell as construction spending in Hawaii continued to soften due to the
recessionary economy. Military and governmental spending in Hawaii provided a
stable base of business; however, residential and commercial construction,
including construction of timeshare units, resorts and high-rise condominium
projects, was down. The State of Hawaii`s fiscal challenges and the lower level
of tourism are expected to delay a recovery in Hawaiian construction. Demand for
Pole Products Division`s decorative concrete poles for residential lighting
applications is stable. However, significant recovery of the Infrastructure
Products Group is not expected in the short term.

The Water Transmission Group was slightly profitable in the second quarter of
2010. The profitability of the water pipe business improved, while the wind
tower business turned unprofitable. The Group`s combined sales declined $1.0
million, or 2%, due to lower pipe sales than in the second quarter of 2009. As
anticipated, water pipe sales improved in the second quarter, compared to the
first quarter when rainy weather impacted pipe production. Wind tower sales were
flat in the second quarter of 2010, compared to the second quarter of 2009. New
tower orders remain elusive due to weak wind energy markets and the inability of
wind farm developers to obtain project financing. Wind tower backlog fell to
$11.5 million at the end of the second quarter, from $28.9 million at November
30, 2009. The wind tower business is not expected to recover in the near term.
The water pipe business was also affected by the low bid activity in the water
and wastewater markets in the western U.S. The lack of bid activity was due to
tight municipal and state budgets, the lack of available project financing and
the timing of construction of major water transmission pipelines. While a number
of wind tower and pipe projects are being followed and planning activities have
increased, it remains uncertain when owners, water agencies and municipalities
will proceed with these projects.

TAMCO`s sales increased in the second quarter of 2010, compared to the same
period in 2009, primarily due to inventory restocking by customers and higher
market pricing. Shipments in 2010 remained well below TAMCO`s production
capacity. TAMCO`s net loss in the second quarter of 2010 totaled $.8 million,
compared to a loss of $3.4 million in 2009. Ameron`s share of TAMCO`s net loss
was $.4 million after taxes in 2010, compared to a loss of $1.6 million in 2009.
While steel markets have generally firmed in the U.S., demand for steel rebar in
TAMCO`s key markets in the western states remains depressed due to sluggishness
in the construction industry.

“We are pleased with second-quarter results. As expected, 2010 continues to be
challenging. The seasonal decline of the first quarter was partially offset in
the second quarter, and some markets are showing signs of improvement. Although
difficult market conditions are expected to continue, we are cautiously
optimistic for the balance of the year. The Company will continue to be led by
the Fiberglass-Composite Pipe Group and constrained by the cyclical,
construction-related businesses. We continue to focus on controlling costs to
maximize profits in spite of weak markets and are actively reviewing all
operations for improvements. Likewise, we are continuing to invest in expanding
and enhancing the Company`s capabilities and markets and are seeking
opportunities for growth. We remain optimistic that as the global economy
recovers and stabilizes, the Company will capitalize on its strong market
positions and achieve superior long-term results,” James S. Marlen concluded.

About Ameron International

Ameron International Corporation is a multinational manufacturer of
highly-engineered products and materials for the chemical, industrial, energy,
transportation and infrastructure markets. Traded on the New York Stock Exchange
(AMN), Ameron is a leading producer of water transmission lines and fabricated
steel products, such as wind towers; fiberglass-composite pipe for transporting
oil, chemicals and corrosive fluids and specialized materials; and products used
in infrastructure projects. The Company`s businesses operate in North America,
South America, Europe and Asia. The Company also has partial ownership in
several unconsolidated affiliates in the U.S. and the Middle East.

All statements in this press release and in all future press releases that do
not directly and exclusively relate to historical facts constitute
“forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements represent the intentions, plans,
expectations and beliefs of Ameron International Corporation (the “Company” or
“Ameron”), and are subject to risks, uncertainties and other factors, many of
which are outside the Company`s control. These factors could cause actual
results to differ materially from such forward-looking statements. For a written
description of these factors, see the section titled “Risk Factors” in the
Company`s Annual Report on Form 10-K for the period ended November 30, 2009. The
Company disclaims any intention or obligation to update these forward-looking
statements whether as a result of subsequent events or otherwise except as
required by law.

AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended Six Months Ended
May 30, May 31, May 30, May 31,
(Dollars in thousands, except per share data) 2010 2009 2010 2009
Sales $ 136,544 $ 132,920 $ 245,562 $ 278,922
Cost of sales (101,213 ) (96,370 ) (180,785 ) (207,451 )
Gross profit 35,331 36,550 64,777 71,471

Selling, general and administrative expenses (24,138 ) (25,877 ) (51,400 ) (52,285 )
Other income, net 969 2,431 1,511 2,902
Income before interest, income taxes and equity in loss of affiliate 12,162 13,104 14,888 22,088
Interest expense, net (305 ) (148 ) (412 ) (319 )
Income before income taxes and equity in loss of affiliate 11,857 12,956 14,476 21,769
Provision for income taxes (1,899 ) (1,975 ) (2,659 ) (4,619 )
Income before equity in loss of affiliate 9,958 10,981 11,817 17,150
Equity in loss of affiliate, net of taxes (409 ) (1,555 ) (1,185 ) (3,898 )
Net income $ 9,549 $ 9,426 $ 10,632 $ 13,252

Net income per share allocated to Common Stock
Basic $ 1.03 $ 1.02 $ 1.15 $ 1.44

Diluted $ 1.03 $ 1.02 $ 1.15 $ 1.43

Weighted-average shares (basic) 9,205,970 9,171,645 9,191,676 9,159,161
Weighted-average shares (diluted) 9,218,234 9,185,143 9,209,129 9,172,470

Cash dividends per share $ .30 $ .30 $ .60 $ .60

AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS – ASSETS (UNAUDITED)

May 30, November 30,
(Dollars in thousands) 2010 2009
ASSETS

Current assets
Cash and cash equivalents $ 153,351 $ 181,114
Receivables, less allowances of $4,589 in 2010 and $5,351 in 2009 155,171 151,210
Inventories 70,865 62,700
Deferred income taxes 18,814 19,795
Prepaid expenses and other current assets 12,870 11,585

Total current assets 411,071 426,404

Investments
Equity method affiliate 27,841 30,626
Cost method affiliates 3,784 3,784

Property, plant and equipment
Land 45,662 46,029
Buildings 100,856 100,583
Machinery and equipment 348,573 345,604
Construction in progress 36,958 32,306

Total property, plant and equipment at cost 532,049 524,522
Accumulated depreciation (291,440 ) (286,014 )

Total property, plant and equipment, net 240,609 238,508
Deferred income taxes 14,320 14,321
Goodwill and intangible assets, net of accumulated amortization of $1,269 in 2010 and $1,257 in 2009 2,070 2,088
Other assets 46,521 46,818

Total assets $ 746,216 $ 762,549

AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS – LIABILITIES AND STOCKHOLDERS’ EQUITY (UNAUDITED)

May 30, November 30,
(Dollars in thousands, except per share data) 2010 2009
LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities
Current portion of long-term debt $ 7,263 $ 7,366
Trade payables 45,933 44,052
Accrued liabilities 69,614 77,515
Income taxes payable 9,038 10,004

Total current liabilities 131,848 138,937

Long-term debt, less current portion 31,874 30,933
Deferred income taxes 1,709 1,710
Other long-term liabilities 90,764 99,379

Total liabilities 256,195 270,959

Commitments and contingencies

Stockholders’ equity
Common Stock, par value $2.50 per share, authorized 24,000,000 shares, outstanding 9,246,355 shares in 2010 and 9,209,836 shares in 2009 30,045 29,920
Additional paid-in capital 60,395 59,531
Retained earnings 505,299 500,224
Accumulated other comprehensive loss (48,649 ) (42,036 )
Treasury Stock (2,771,637 shares in 2010 and 2,758,356 shares in 2009) (57,069 ) (56,049 )

Total stockholders’ equity 490,021 491,590

Total liabilities and stockholders’ equity $ 746,216 $ 762,549

AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Six Months Ended
May 30, May 31,
(Dollars in thousands) 2010 2009
OPERATING ACTIVITIES
Net income $ 10,632 $ 13,252
Adjustments to reconcile net income to net cash (used in)/provided by operating activities:
Depreciation 12,714 10,657
Amortization 17 19
Loss from affiliate 1,285 4,313
(Gain)/loss from sale of property, plant and equipment (11) 16
Stock compensation expense 1,433 2,362
Changes in operating assets and liabilities:
Receivables, net (5,394) 45,120
Inventories (9,356) 15,873
Prepaid expenses and other current assets (1,339) (246)
Other assets 64 (87)
Trade payables 2,377 (7,675)
Accrued liabilities and income taxes payable (8,226) (3,637)
Other long-term liabilities and deferred income taxes (8,325) (1,221)
Net cash (used in)/provided by operating activities (4,129) 78,746

INVESTING ACTIVITIES
Proceeds from sale of property, plant and equipment 180 431
Additions to property, plant and equipment (16,756) (26,471)
Investment in affiliate – (10,000)
Loan to affiliate, net 1,500 –
Net cash used in investing activities (15,076) (36,040)

FINANCING ACTIVITIES
Issuance of debt 1,150 427
Dividends on Common Stock (5,557) (5,521)
Issuance of Common Stock 306 (1)
Excess tax benefits related to stock-based compensation – 819
Purchase of treasury stock (1,081) (992)
Net cash used in financing activities (5,182) (5,268)

Effect of exchange rate changes on cash and cash equivalents (3,376) 4,581
Net change in cash and cash equivalents (27,763) 42,019
Cash and cash equivalents at beginning of period 181,114 143,561

Cash and cash equivalents at end of period $ 153,351 $ 185,580

AMERON INTERNATIONAL CORPORATION AND SUBSIDIARIES

SEGMENT INFORMATION (UNAUDITED)

Three Months Ended Six Months Ended
May 30, May 31, May 30, May 31,
(In thousands) 2010 2009 2010 2009
Sales
Fiberglass-Composite Pipe $ 64,668 $ 55,532 $ 119,174 $ 112,273
Water Transmission 41,288 42,251 67,100 93,794
Infrastructure Products 30,612 35,147 59,318 72,866
Eliminations (24 ) (10 ) (30 ) (11 )
Total Sales $ 136,544 $ 132,920 $ 245,562 $ 278,922

Income Before Interest, Income Taxes and Equity in Loss of Affiliate
Fiberglass-Composite Pipe $ 17,779 $ 16,490 $ 31,830 $ 31,136
Water Transmission 252 2,182 (1,630 ) 2,695
Infrastructure Products 2,370 3,059 3,584 6,843
Corporate and unallocated (8,239 ) (8,627 ) (18,896 ) (18,586 )
Total Income Before Interest, Income Taxes and Equity in Loss of Affiliate $ 12,162 $ 13,104 $ 14,888 $ 22,088

Ameron International Corporation
James S. Marlen, Chairman, Chief Executive Officer and President
Gary Wagner, Senior Vice President, Finance and Administration & Chief Financial
Officer
James R. McLaughlin, Senior Vice President, Corporate Development & Treasurer
Telephone: 626-683-4000

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