Insteel Industries Inc. Announces Unaudited Consolidated Earnings Results for the First Quarter Ended December 31, 2016
January 19, 2017 at 05:00 pm IST
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Insteel Industries Inc. announced unaudited consolidated earnings results for the first quarter ended December 31, 2016. Net earnings for the first quarter of fiscal 2017 decreased to $4.5 million, or $0.23 per basic and diluted share, from $6.7 million, or $0.36 per basic and diluted share, in the same period a year ago. Net sales increased 1.6% to $93.9 million from $92.4 million in the prior year quarter, reflecting an 8.5% increase in shipments and a 6.4% decrease in average selling prices. Insteel's first-quarter results were unfavorably impacted by narrower spreads between selling prices and raw material costs, which were partially offset by the increase in shipments relative to the prior year quarter. The spread compression was driven by competitive pricing pressures together with the consumption of higher cost inventory purchased in prior periods. Cash flow from operations fell to $3.8 million from $12.4 million in the prior year quarter primarily due to the relative changes in net working capital and the decrease in earnings. Capital expenditures increased to $5.4 million from $0.9 million in the prior year quarter. Earnings before income taxes were $6.726 million against $10.254 million last year.
Insteel Industries, Inc. is a manufacturer of steel wire reinforcing products for concrete construction applications. The Company's operations are focused on the manufacture and marketing of steel wire reinforcing products for concrete construction applications. The Company's concrete reinforcing products consist of two product lines: prestressed concrete strand (PC strand) and welded wire reinforcement (WWR). Its PC strand is a seven-wire strand that is used to impart compression forces into precast concrete elements and structures, providing reinforcement for bridges, parking decks, buildings, and other concrete structures. Its WWR is produced as either a standard or a specially engineered reinforcing product for use in nonresidential and residential construction. Its products are sold to manufacturers of concrete products that are used in nonresidential construction. The Company sells its products nationwide across the United States, Canada, Mexico, and Central and South America.