Mount Airy North Carolina headquartered US’s leading steel wire producer Insteel Industries has reported that net earnings for the first quarter of fiscal 2023 decreased to USD 11.1 million in October-December quarter of 2022, sharply down from record earnings of USD 23.1 million in October-December quarter of 2021 as results were unfavorably impacted by lower shipments and the narrowing of spreads between selling prices and raw material costs.Net sales decreased 6.5% YoY to USD 166.9 million from USD 178.5 million in the prior year quarter primarily from a 10.0% decrease in shipments partially offset by a 3.9% increase in average selling prices. Shipments into nonresidential construction markets during the first quarter were adversely affected by customer destocking that reflects easing supply chain constraints together with the ongoing weakness in the residential construction market. On a sequential basis, shipments decreased 12.0% from the fourth quarter of fiscal 2022, reflecting the usual seasonal slowdown in construction activity, while average selling prices fell 8.8%.Gross margin narrowed to 10.7% from 23.7% in the prior year quarter due to the reduction in spreads between selling prices and raw material costs together with a decrease in shipments and higher operating costs that reflect lower production volumes and general inflationary trends. The spread compression was driven by the consumption of higher cost inventory purchased primarily in fiscal 2022.Insteel’s President & CEO Mr HO Woltz III said “Following a year of record financial results, the first quarter of fiscal 2023 was a period of transition as our supply chain recovers from unprecedented constraints of the prior year. As we move into the second quarter, we expect our results will continue to be affected by the consumption of higher cost inventories along with the usual weather-related slowdown in construction activity.”Insteel is the US’s largest manufacturer of steel wire reinforcing products for concrete construction applications. Insteel manufactures and markets prestressed concrete strand and welded wire reinforcement, including engineered structural mesh, concrete pipe reinforcement and standard welded wire reinforcement. Insteel’s products are sold primarily to manufacturers of concrete products and concrete contractors for use, primarily, in nonresidential construction applications. Headquartered in Mount Airy, North Carolina, Insteel operates ten manufacturing facilities located in the United States.
Mount Airy North Carolina headquartered US’s leading steel wire producer Insteel Industries has reported that net earnings for the first quarter of fiscal 2023 decreased to USD 11.1 million in October-December quarter of 2022, sharply down from record earnings of USD 23.1 million in October-December quarter of 2021 as results were unfavorably impacted by lower shipments and the narrowing of spreads between selling prices and raw material costs.Net sales decreased 6.5% YoY to USD 166.9 million from USD 178.5 million in the prior year quarter primarily from a 10.0% decrease in shipments partially offset by a 3.9% increase in average selling prices. Shipments into nonresidential construction markets during the first quarter were adversely affected by customer destocking that reflects easing supply chain constraints together with the ongoing weakness in the residential construction market. On a sequential basis, shipments decreased 12.0% from the fourth quarter of fiscal 2022, reflecting the usual seasonal slowdown in construction activity, while average selling prices fell 8.8%.Gross margin narrowed to 10.7% from 23.7% in the prior year quarter due to the reduction in spreads between selling prices and raw material costs together with a decrease in shipments and higher operating costs that reflect lower production volumes and general inflationary trends. The spread compression was driven by the consumption of higher cost inventory purchased primarily in fiscal 2022.Insteel’s President & CEO Mr HO Woltz III said “Following a year of record financial results, the first quarter of fiscal 2023 was a period of transition as our supply chain recovers from unprecedented constraints of the prior year. As we move into the second quarter, we expect our results will continue to be affected by the consumption of higher cost inventories along with the usual weather-related slowdown in construction activity.”Insteel is the US’s largest manufacturer of steel wire reinforcing products for concrete construction applications. Insteel manufactures and markets prestressed concrete strand and welded wire reinforcement, including engineered structural mesh, concrete pipe reinforcement and standard welded wire reinforcement. Insteel’s products are sold primarily to manufacturers of concrete products and concrete contractors for use, primarily, in nonresidential construction applications. Headquartered in Mount Airy, North Carolina, Insteel operates ten manufacturing facilities located in the United States.
