Insteel Industries, Inc. announced Thursday financial results for its second quarter ended March 28, 2015.
Net earnings for the second quarter of fiscal 2015 fell to $2.5 million, or $0.14 per share from $3.5 million, or $0.19 per share in the same period a year ago. The second quarter results for fiscal 2015 include a $1.6 million net gain from insurance proceeds related to the January 2014 fire at the Gallatin, Tennessee facility and $0.3 million of restructuring charges associated with the March 2015 closure of the Newnan, Georgia prestressed concrete strand facility.
Net sales increased 11.3 percent to $101.8 million from $91.4 million in the prior year period due to the August 2014 acquisition of the PC strand business of American Spring Wire Corporation (ASW). Shipments increased 10.6 percent from the prior year quarter and average selling prices increased 0.7 percent. On a sequential basis, shipments decreased 6.7 percent from the first quarter of fiscal 2015 and average selling prices decreased 1.4 percent.
"As we move into the second half of the year, we expect significant improvement in our financial results driven by the usual seasonal upturn in demand, the ongoing recovery in our nonresidential construction end-markets and the consumption of lower cost inventory," commented H.O. Woltz III, Insteel's president and CEO. "We should also benefit from lower conversion costs through the consolidation of our PC strand facilities and ongoing process improvement initiatives at our other locations. The closure of our Newnan facility, which was completed in March, is expected to generate approximately $3.0 million of annualized cost savings beginning in the current quarter. We also anticipate lower costs at our Hazleton, Pennsylvania and Gallatin, Tennessee facilities as we ramp up operating volumes following the recent completion of major capital projects."