Insteel Industries Inc has reported net earnings of USD 1.0 million for the fourth quarter of fiscal 2011 compared with a net loss of USD 1.6 million in the fourth quarter of fiscal 2010. Net earnings for the current year quarter include net restructuring recoveries of USD 0.3 million related to the November 2010 acquisition of certain of the assets of Ivy Steel & Wire Inc. The net loss for the prior year quarter includes USD 0.4 million of inventory write downs and a USD 1.5 million charge for the settlement of litigation.
Insteel's financial results for the fourth quarter of fiscal 2011 were favorably impacted by the contribution from the Ivy facilities and widening spreads between selling prices and raw material costs relative to the prior year. Demand for the Company's products remained at depressed levels due to the ongoing weakness in the construction sector. Insteel's capacity utilization for the quarter was 49% compared with 48% in the third quarter of fiscal 2011 and 49% in the fourth quarter of fiscal 2010. Selling, general and administrative expense for the quarter was unfavorably impacted by the relative year over year changes in the cash surrender value of life insurance policies resulting from the downturn in the financial markets in the current year quarter.
Net sales for the fourth quarter of fiscal 2011 increased 76.4% to USD 99.1 million from USD 56.2 million in the fourth quarter of fiscal 2010 primarily due to the addition of Ivy's facilities and higher average selling prices. Shipments for the fourth quarter of fiscal 2011 increased 50.4% from the prior year quarter and average selling prices increased 17.3%. On a sequential basis, shipments decreased 2.0% from the third quarter of fiscal 2011 while average selling prices increased 2.6%.
For fiscal 2011, Insteel incurred a net loss of USD 0.4 million as compared with net earnings of USD 0.5 million in fiscal 2010. The net loss for fiscal 2011 includes net restructuring charges, acquisition related costs and a bargain purchase gain related to the Ivy acquisition, which totaled USD 11.3 million. Net earnings for fiscal 2010 include USD 2.3 million of inventory write downs and a USD 1.5 million charge for the settlement of litigation.
Net sales for fiscal 2011 increased 59.2% to USD 336.9 million from USD 211.6 million in fiscal 2010. Shipments for fiscal 2011 increased 39.0% from the prior year and average selling prices increased 14.6%.
