Universal Stainless & Alloy Products said today second quarter earnings fell 10 percent despite a 2 percent increase in sales.

The Bridgeville specialty steelmaker's net income totaled $5.3 million, or 77 cents per diluted share, on sales of $63.5 million, vs. earnings of $5.9 million, or 87 cents per share, and sales of $62.1 million in the year-ago quarter. The results were slightly better than the company's forecast earnings of 70 to 75 cents per share.

A lower tax rate for the quarter boosted per-share earnings by 2 cents. Excluding that benefit, the earnings were in line with analyst estimates.

"Driving our results were higher sales to the power generation market combined with record sales to the petrochemical market and tool steel to service centers," said President and Chief Executive Officer Dennis Oates.

Universal expects third quarter earnings of 78 to 83 cents per share on sales of $60 million to $65 million.