Toronto, Canada-based Samuel Manu-Tech Inc. Tuesday reported results for the three months ended June 30, 2010.
Sales for the second quarter ended June 30, 2010 were $184.9 million, which represents an increase of $27.3 million or 17.3 percent over the $157.6 million achieved in the comparable period of last year. The increase in the second quarter resulted from higher overall volumes and selling prices partially offset by the unfavorable impact of foreign exchange translation. The increase in volumes is reflective of signs of a gradual economic recovery in certain of the Company's served markets, particularly the automotive sector.
The transportation, residential and non-residential construction and forestry sectors have seen very little recovery. The average exchange rate of the U.S. dollar in the second quarter of 2010 was Cdn. $1.03 compared to Cdn. $1.17 in the second quarter of last year. Compared to the first quarter of this year sales are up 14 percent.
Operating profit for the second quarter amounted to $3.6 million compared to an operating loss of $14.0 million in the comparable quarter of last year. Both the Packaging and Metal Processing segments generated operating profits in the second quarter compared to operating losses in the comparable periods of last year.
The Packaging segment generated an operating profit of $2.7 million in the second quarter, compared to an operating loss of $5.7 million last year, with both the Canadian and the US operations profitable in the quarter. The profit earned reflects a gradual recovery in economic conditions in North America and the impact of higher margins, as well as the positive impact of cost reduction and consolidation initiatives implemented last year. Compared to the first quarter of this year, the Packaging Segment operating profit increased 48.5 percent.
The Metal Processing segment generated an operating profit of $3.7 million compared to an operating loss of $8.0 million in the comparable quarter of last year with all groups reporting operating profits. Profitability from steel pickling operations showed strong improvement in the quarter reflecting higher overall volumes in both Canada and the US and the positive impact of prior year downsizing. Roll formed products operations returned to profitability in the quarter with profitability in the US operations exceeding operating losses experienced in the Canadian operations.
Carbon steel tubular operations were profitable in the quarter with both Tube.tec and Tubular Products Company reporting profitable results. Steel pressure vessel operations were profitable in the quarter despite continued weakness in demand and unfavorable product mix. Stainless steel tubular operations achieved a small profit in the second quarter of the current year compared to losses incurred in the prior year, with the improvement attributable to higher sales and pricing levels as compared to the same period last year.
Compared to the first quarter of this year, operating profit for the Metal Processing segment was up 114 percent.
Including corporate costs of $2.8 million, total operating profit in the quarter was $3.6 million.
Net income for the second quarter was $1.0 million compared to a net loss of $10.0 million in the comparable quarter of last year.
Samuel Manu-Tech Inc. is a North American industrial products and technology company producing and distributing a wide range of steel, plastic and related industrial products and services from locations in Canada, United States and Mexico.