GenCorp Declining Margins

GenCorp Inc. GY reported results for the Q3. Sales are up 18% for the quarter and 9% year to date. Yet serious losses continue. Q3 sales as a percentage of cost of products sold dropped from 12.1% last year to 8.8% this year. The year to date trend shows a drop from 10% last year to 8.5% this year. Management press release has failed to publicly recognize this distressing trend and present plans on how to reverse the problem.