Keystone Consolidated Industries, Inc. Friday reported a net income of $6.7 million in the second quarter of 2010 as compared to a net income of $1.0 million in the second quarter of 2009. Sales volume was significantly higher during the second quarter of 2010 which resulted in more normal production schedules throughout the quarter. During the second quarter of 2009, economic conditions resulted in a sharp reduction of customer orders and the Company operated on an extremely reduced production schedule, which resulted in a much higher percentage of fixed costs included in cost of goods sold as these costs could not be capitalized into inventory.
Ferrous scrap costs increased during the first five months of 2010 and Keystone implemented selling price increases to compensate for their higher costs resulting in higher per-ton selling prices for most of the Company's product lines during the second quarter of 2010 as compared to the second quarter of 2009. However, Keystone sold a higher volume of lower priced products in the 2010 second quarter resulting in a lower average per-ton selling price than the 2009 second quarter.
Keystone Consolidated Industries, Inc. is headquartered in Dallas, Texas. The Company is a manufactures steel fabricated wire products, industrial wire and wire rod. Keystone also manufactures wire mesh, coiled rebar, steel bar and other products. The Company's products are used in the agricultural, industrial, cold drawn, construction, transportation, original equipment manufacturer and retail consumer markets.