Insteel Industries, Inc. today announced financial results for its third quarter ended July 2, 2016. Net earnings for the third quarter of fiscal 2016 increased to $13.5 million, a 150 percent increase from $5.4 million in the same period a year ago. Net sales decreased 1.2 percent to $115.6 million from $117.0 million in the prior year quarter, reflecting a 9.8 percent increase in shipments offset by a 10.0 percent decrease in average selling prices.
Shipments for both periods were adversely affected by heavy rainfall and flooding in the south central region of the country, particularly during April and May. On a sequential basis, shipments increased 8.8 percent from the second quarter of fiscal 2016 while average selling prices decreased 1.1 percent.
"We expect strong results for our fiscal fourth quarter driven by the favorable conditions in our construction end-markets and usual seasonal strength in demand together with further reductions in our manufacturing costs," commented H.O. Woltz III, Insteel's president and CEO. "Although spreads are likely to narrow from the third quarter due to the consumption of higher cost inventory, we believe they will remain at improved levels.”