Longview Texas based Friedman Industries has recorded net earnings of USD 11.1 million on net sales of USD 161.8 million in the quarter ended 30 June 2022 as compared to net earnings of USD 11.3 million on net sales of USD 65.9 million in the quarter ended 30 June 2021. Earnings before income taxes were USD 14.7 million for the 2022 quarter compared to USD 14.3 million for the 2021 quarter. The 2022 quarter is the second most profitable quarter in Company history. Friedman Industries said “Results for the 2022 quarter were positively impacted by an acquisition made by the Company during the quarter. On 30 April 2022, the Company acquired steel processing facilities in East Chicago in Indiana and Granite City in Illinois from Plateplus and also acquired certain steel inventory from Plateplus’ Houston Texas and Loudon in Tennessee facilities. During the 2022 quarter, the East Chicago and Granite City operations contributed revenue of approximately USD 53.6 million and earnings before income taxes of approximately USD 4.3 million. Plateplus provided toll processing services related to the inventory acquired in Houston and Loudon with sales of this inventory contributing revenue of approximately USD 28.6 million and earnings before taxes of approximately USD 2.1 million in the 2022 quarter. The Company also experienced above average margins during the 2022 quarter due primarily to a sharp increase in steel prices just prior to the quarter and during the first part of the quarter that was triggered primarily by industry reaction to the Russian invasion of Ukraine.”Coil product segment sales for the 2022 quarter totaled USD 142.9 million compared to USD 52.7 million for the 2021 quarter. The increase in sales was driven primarily by an increase in sales volume with an increase in the average selling price being a secondary factor. The average per ton selling price of inventory increased from approximately USD 1,462 per ton in the 2021 quarter to approximately USD 1,525 per ton in the 2022 quarter.Tubular product segment sales for the 2022 quarter totaled USD 18.9 million compared to USD 13.2 for the 2021 quarter. Sales increased due to an increase in the average selling price per ton, offset by a decrease in tons sold. The average per ton selling price of inventory increased from approximately USD 930 per ton in the 2021 quarter to approximately USD 1,779 per ton in the 2022 quarter.The Company completed installation of the steel processing equipment at its new facility in Sinton in Texas in September 2022 and entered an equipment commissioning phase in October 2022. The Company has been very encouraged by the commissioning process so far and expects to commence shipments of material to customers during October 2022. The Company expects the remainder of fiscal 2023 to be a ramp up period for the facility and then expects the facility’s annual shipments could be in the range of 110,000 tons to 140,000 tons for fiscal 2024. The Company expects sales of approximately USD 150 million on approximately 115,000 tons sold for its second quarter of fiscal 2023. Hot-rolled coil prices declined during July 2022 and August 2022 decreasing approximately 25% from the price level at the end of the June 30, 2022 quarter. As a result of the declining HRC price, the Company experienced margin compression during its second quarter. During September 2022, HRC prices began to stabilize. The Company sees more stable market conditions during the third quarter of fiscal 2023 and expects to have margins closer to historical norms on a sales volume of approximately 105,000 tons. The third quarter volume expectation is slightly lower than the second quarter estimate due primarily to the impact of holidays during the third quarter of fiscal 2023.Friedman Industries, headquartered in Longview, is a manufacturer and processor of steel products with operating plants in Hickman, Arkansas; Decatur, Alabama; East Chicago, Indiana; Granite City, Illinois; Sinton, Texas and Lone Star, Texas. The Company has two reportable segments: coil products and tubular products. The coil product segment consists of the operations in Hickman, Decatur, East Chicago, Granite City and Sinton where the Company processes hot-rolled steel coils. The Hickman, East Chicago and Granite City facilities operate temper mills and corrective leveling cut-to length lines. The tubular product segment consists of the operations in Lone Star where the Company manufactures electric resistance welded pipe and distributes pipe through its Texas Tubular Products division.
Longview Texas based Friedman Industries has recorded net earnings of USD 11.1 million on net sales of USD 161.8 million in the quarter ended 30 June 2022 as compared to net earnings of USD 11.3 million on net sales of USD 65.9 million in the quarter ended 30 June 2021. Earnings before income taxes were USD 14.7 million for the 2022 quarter compared to USD 14.3 million for the 2021 quarter. The 2022 quarter is the second most profitable quarter in Company history. Friedman Industries said “Results for the 2022 quarter were positively impacted by an acquisition made by the Company during the quarter. On 30 April 2022, the Company acquired steel processing facilities in East Chicago in Indiana and Granite City in Illinois from Plateplus and also acquired certain steel inventory from Plateplus’ Houston Texas and Loudon in Tennessee facilities. During the 2022 quarter, the East Chicago and Granite City operations contributed revenue of approximately USD 53.6 million and earnings before income taxes of approximately USD 4.3 million. Plateplus provided toll processing services related to the inventory acquired in Houston and Loudon with sales of this inventory contributing revenue of approximately USD 28.6 million and earnings before taxes of approximately USD 2.1 million in the 2022 quarter. The Company also experienced above average margins during the 2022 quarter due primarily to a sharp increase in steel prices just prior to the quarter and during the first part of the quarter that was triggered primarily by industry reaction to the Russian invasion of Ukraine.”Coil product segment sales for the 2022 quarter totaled USD 142.9 million compared to USD 52.7 million for the 2021 quarter. The increase in sales was driven primarily by an increase in sales volume with an increase in the average selling price being a secondary factor. The average per ton selling price of inventory increased from approximately USD 1,462 per ton in the 2021 quarter to approximately USD 1,525 per ton in the 2022 quarter.Tubular product segment sales for the 2022 quarter totaled USD 18.9 million compared to USD 13.2 for the 2021 quarter. Sales increased due to an increase in the average selling price per ton, offset by a decrease in tons sold. The average per ton selling price of inventory increased from approximately USD 930 per ton in the 2021 quarter to approximately USD 1,779 per ton in the 2022 quarter.The Company completed installation of the steel processing equipment at its new facility in Sinton in Texas in September 2022 and entered an equipment commissioning phase in October 2022. The Company has been very encouraged by the commissioning process so far and expects to commence shipments of material to customers during October 2022. The Company expects the remainder of fiscal 2023 to be a ramp up period for the facility and then expects the facility’s annual shipments could be in the range of 110,000 tons to 140,000 tons for fiscal 2024. The Company expects sales of approximately USD 150 million on approximately 115,000 tons sold for its second quarter of fiscal 2023. Hot-rolled coil prices declined during July 2022 and August 2022 decreasing approximately 25% from the price level at the end of the June 30, 2022 quarter. As a result of the declining HRC price, the Company experienced margin compression during its second quarter. During September 2022, HRC prices began to stabilize. The Company sees more stable market conditions during the third quarter of fiscal 2023 and expects to have margins closer to historical norms on a sales volume of approximately 105,000 tons. The third quarter volume expectation is slightly lower than the second quarter estimate due primarily to the impact of holidays during the third quarter of fiscal 2023.Friedman Industries, headquartered in Longview, is a manufacturer and processor of steel products with operating plants in Hickman, Arkansas; Decatur, Alabama; East Chicago, Indiana; Granite City, Illinois; Sinton, Texas and Lone Star, Texas. The Company has two reportable segments: coil products and tubular products. The coil product segment consists of the operations in Hickman, Decatur, East Chicago, Granite City and Sinton where the Company processes hot-rolled steel coils. The Hickman, East Chicago and Granite City facilities operate temper mills and corrective leveling cut-to length lines. The tubular product segment consists of the operations in Lone Star where the Company manufactures electric resistance welded pipe and distributes pipe through its Texas Tubular Products division.
