Insteel Industries, Inc. today announced financial results for its fourth quarter and fiscal year ended September 30, 2017. Net earnings for the fourth quarter of fiscal 2017 decreased to $3.8 million from $9.9 million in the same period a year ago.
Net sales decreased 6.0 percent to $96.9 million from $103.1 million in the prior year quarter, reflecting a 5.1 percent decrease in shipments and a 1.0 percent decrease in average selling prices. Shipments increased 1.9 percent sequentially from the third quarter of fiscal 2017 while average selling prices decreased 1.9 percent.
Insteel's fourth-quarter results were unfavorably impacted by narrower spreads between selling prices and raw material costs together with lower shipment and production volumes relative to the prior year quarter. The company's four facilities located in Texas and Florida, its two largest markets, were adversely affected by reduced volumes related to hurricanes Harvey and Irma.
Net earnings for fiscal 2017 decreased to $22.5 million from $37.2 million in the prior year. Net sales decreased 7.1 percent to $388.9 million from $418.5 million in the prior year due to lower shipments as average selling prices were unchanged.
"Looking ahead to fiscal 2018, we expect improved business conditions driven by higher state and local infrastructure funding, modest increases in nonresidential construction and continued expansion of the housing market," commented H.O. Woltz III, Insteel's president and CEO. "We should also benefit from the deferral of business resulting from the adverse weather in many of our markets during the second half of fiscal 2017. We expect spreads to remain under pressure until the anticipated rebound in demand is reflected in our order book."