Webco Industries Inc has reported results for its fiscal 2012 first quarter ended October 31st 2011.

For its fiscal 2012 first quarter, the company reported net income of USD 2.8 million as compared to net income of USD 6.2 million for the same quarter in fiscal 2011. Net sales for the first quarter of fiscal 2012 were USD 129.6 million, a 25.4% increase from the USD 103.3 million of sales in last year's first quarter. The current quarter results reflect USD 1.9 million non cash pre tax loss related to an interest swap contract, whereas the prior year same quarter included a USD 0.4 million pre tax loss on interest rate swaps.

Mr Dana S Weber CEO of Webco Industries Inc said that "We are progressing with the development of additional facilities and new product offerings. It is our intention to continuously deploy capital in pursuit of organic growth opportunities that are consistent with our long term niche strategy."

Gross profit for the first quarter of fiscal 2012 was USD 13.0 million, or 10.0% of net sales as compared to USD 15.7 million or 15.2% of net sales, for the first quarter of fiscal 2011. The gross profit percentage decreased because of facility start up and product development costs.

Selling, general and administrative expenses in the first quarter of fiscal 2012 were USD 5.4 million as compared to USD 5.8 million in the first quarter of the prior year.

Interest expense was USD 1.3 million in the current year first quarter and USD 1.0 million in prior year first quarter. The company is party to an arrangement that swaps the variable interest rate for USD 75 million of the company's debt to a fixed rate through May 2017. Monthly swap settlements are included in interest expense. The company records the interest swap at fair value and non cash changes in value are reported in gains or losses on interest contracts.