Universal Stainless & Alloy Products Inc. on Tuesday forecast up to 29 percent growth in second-quarter earnings per share, on expectations of continuing strong demand from the aerospace industry.

The company forecast quarterly earnings per share of 85 cents to 90 cents, compared with 70 cents per share in the second quarter of 2006. Universal Stainless also expects second-quarter revenue of $52 million to $57 million, compared with $48 million in the prior year's quarter.

Universal Stainless said it expects strong demand from the aerospace industry to continue, as airlines take deliveries of new planes to make their fleets more fuel efficient. The company also expects high nickel prices to continue.

Shares fell $3.46, or 6.7 percent, to $48.54 in morning trading on the Nasdaq Stock Market, where they have ranged between $21.56 and $54.16 over the past year.