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.