Tree Island Steel Ltd. announced Tuesday its financial results for the three-month and full-year periods ended December 31, 2013.
For the three-month period ended December 31, 2013, revenues increased to $35.7 million on 27,295 tons, versus $28.7 million on 21,583 tons during the fourth quarter in 2012. Volumes also increased by 26.5 percent in the fourth quarter to 27,295 tons, primarily due to increasing demand for Industrial and Construction products in the Company's markets. Gross profit continued to strengthen in the quarter, amounting to $3.8 million, representing a 186.8 percent improvement when compared to $1.3 million in the corresponding period in 2012.
For the full-year period ended December 31, 2013, revenues amounted to $153.4 million on 113,401 tons, compared to $146.2 million on 102,408 tons during the same period in 2012. The higher revenues in 2013 primarily reflect increased volumes particularly in the Industrial and Commercial Construction market segments. The growth in revenue was partially reduced by price adjustments driven by competitive factors in certain business lines coupled with product mix changes. Gross profit increased to $17.3 million at a margin of 11.3 percent, compared to $13.0 million and a margin of 8.9 percent, while gross profit per ton also increased to $153 per ton versus $127 per ton in the corresponding period in 2012.
“2013 continued our team's relentless focus on operational efficiencies, cost containment and winning market share,” said Dale R. MacLean, President and CEO of Tree Island Steel. “Combined with increased demand in a number of our key end-markets, we continue to drive revenue, and more importantly earnings growth. Tree Island's fourth quarter results are indicative of the type of positive momentum that we are building on. While cautiously optimistic, our focus in 2014 is to build on the 2013 foundation and to grow the business.”