Insteel reports higher net earnings despite “depressed” demand

Friday, 21 October 2011 02:39:52 (GMT+3)   |  
       

Mount Airy, North Carolina-based steel wire manufacturer Insteel Industries, Inc. announced Thursday net earnings of $1 million in fiscal Q4 2011, compared to a $1.6 million net loss in fiscal Q4 2010. Insteel said the higher earnings were "favorably impacted" by the November 2010 acquisition of Ivy Steel and Wire as well as widening spreads between selling prices and raw material costs relative to last year. Shipments for fiscal Q4 2011 increased 50.4 percent from the prior year quarter and average selling prices increased 17.3 percent.

Nonetheless, demand for the company's products, PC Strand and welded wire reinforcement, remain at depressed levels because of ongoing construction-related weakness. Capacity utilization for the quarter was 49 percent, little changed from 48 percent in Q3 2011 and 49 percent in Q4 2010.
For the full fiscal 2011 year, Insteel Industries still recorded a $0.4 million net loss compared with earnings of $0.5 million in fiscal 2010.

Commenting on the outlook for fiscal 2012, Insteel's president and CEO, H.O. Woltz III said, "Recent macro indicators for the construction sector imply that conditions in our end-markets may have stabilized following the precipitous drop-off in demand that we have experienced in recent years. Unfortunately, we have yet to see signs of a pronounced recovery in our markets and there continues to be a high degree of uncertainty regarding the near-term prospects for nonresidential construction and the resolution of a new federal transportation funding authorization given the current political dynamics in Washington."


Similar articles

India’s ISWPL firms up projects to ramp up rebar and wire rod capacities

25 Jul | Steel News

Malaysia’s Ann Joo acquires 51 percent stake in wire maker

23 Jun | Steel News

Belarus-based BMZ inks several export contracts 

16 Feb | Steel News

UK extends safeguard on some steel products, revokes others

01 Jul | Steel News

Tsingshan Holdings to invest RMB 12 billion in new stainless steel processing center

29 Jun | Steel News

Mechel launches first stage of new wiredrawing equipment at Beloretsk Metallurgical Plant

23 Jun | Steel News

Turkey’s Kaptan to expand product portfolio with new wire rod mill

02 Mar | Steel News

Insteel Industries reports higher net earnings for fiscal Q1

21 Jan | Steel News

Turkey’s Icdas to increase market share with new wire rod mill

23 Nov | Steel News

Danieli to supply wire rod line and slab caster automation to Turkey’s Habas

17 Nov | Steel News