Ameron International Corp. said Wednesday that its first quarter net income dropped by more than 60 percent primarily due to falling demand for steel rebar and other construction products.

The Pasadena manufacturer reported net income of $3.8 million (42 cents per share) for the quarter ended March 1, compared with net income of $9.7 million ($1.07) a year ago. Revenue fell 2.5 percent to $146 million.

Analysts surveyed by Thomson Reuters on averaged expected earnings of 47 cents per share on revenue of $137 million.

The downturn primarily came from the company’s Tamco business, a 50 percent-owned steel mini-mill that experienced a significant decline in demand for steel rebar due to lower construction spending in California, Nevada and Arizona. Mill operations were shut in December as the company worked off its inventory and are expected to restart on a limited basis this quarter.

Sales also fell in the fiberglass-composite pipe and infrastructure products groups. The declines were offset by higher sales of wind tower components at its water transmission products group.

Chief Executive James S. Marlen said federal stimulus spending is likely to help the company’s sales down the road.

“Most of Ameron’s businesses are well-positioned to benefit from higher infrastructure spending,” Martin said in a statement. “Until then, the company has the liquidity and strong cash flow to manage through the current economic downturn.”

Ameron shares were down $3.09, or 6.5 percent, to $44.26 in morning trading on the New York Stock Exchange.