The Longview Texas-based steel processing company Friedman Industries has posted net loss of roughly USD 7.5 million for the quarter ending 31 March 2022 as compared with earnings of USD 10.4 million a year prior while net sales rose 53% YoY to USD 75.1 million. The 2022 quarter results were negatively impacted by margin compression associated with declining steel prices at the time and a net recognized loss of approximately USD 13.9 million related to hot-rolled coil derivative instruments. Results for the 2021 quarter were positively impacted by strong margins primarily associated with a historic rise in steel prices and a net recognized gain of approximately USD 5.5 million related to hot-rolled coil derivative instruments. For the year ended 31 March 2022, Friedman Industries recorded net earnings of USD 14.1 million on sales of USD 285.2 million. For the year, the Company recorded net earnings of USD 11.4 on sales of USD 126.1 million. The combined earnings of fiscal 2022 and fiscal 2021 are higher than any other consecutive two years in Company history. Friedman Industries said “Our operating results are significantly impacted by the market price of hot-rolled steel coil. The Company experienced significant volatility in steel price during both fiscal 2022 and fiscal 2021. The start of fiscal 2021 coincided with the COVID-19 virus starting to have a broad impact across the United States. From March 2020 to August 2020 steel prices declined approximately 25% in response to the initial impacts of COVID-19 on steel industry demand. In August 2020, steel prices began a historic rise, increasing approximately 350% through September 2021. From October 2021 through February 2022, steel prices declined approximately 50% until starting to increase in March 2022 in response to the Russian invasion of Ukraine. With the volatility of steel prices, the Company saw periods of both expanding and contracting margins in fiscal 2022 and fiscal 2021. The overall results for both years are characterized by higher than average margins with fiscal 2022 being the most profitable year in Company history and fiscal 2021 being the third most profitable year.”OUTLOOK – “At the end of fiscal 2022 steel prices started increasing considerably after the Russian invasion of Ukraine. The increase in steel prices resulted in improved margins for the first quarter of fiscal 2023 compared to the fourth quarter of fiscal 2022. The Company expects the June 30, 2022 quarter to be one of the most profitable quarters in Company history due to the margin improvement and a substantial increase in sales volume after the Plateplus transaction. Sales volume for the first quarter of fiscal 2023 was approximately 104,500 tons compared to approximately 52,000 tons for the fourth quarter of fiscal 2022, a 100% increase.”For over 50 years Friedman Industries has helped its customers succeed by consistently providing high quality steel products at highly competitive prices with quick delivery. Founded in 1965 and headquartered in Longview in Texas, Friedman operates in two divisions: the Flat Roll Division and the Tubular Division.