Insteel Industries, Inc. today announced financial results for its first quarter ended January 2, 2021. Net earnings increased to $8.1 million, or $0.42 per share, from $0.6 million, or $0.03 per share, in the same period a year ago.
Net sales increased 22.6 percent to $119.6 million from $97.6 million in the prior year quarter driven primarily by a 21.6 percent increase in shipments in addition to a 1.0 percent increase in average selling prices. On a sequential basis, shipments decreased 15.2 percent from the fourth quarter of fiscal 2020 reflecting the usual seasonal slowdown while average selling prices increased 2.0 percent.
In a press release, the company said first quarter results benefitted from robust demand as construction activity remained strong across its markets.
As for an outlook, H.O. Woltz III, Insteel’s President and CEO, said, “We are encouraged by the resilience of our markets during the first quarter which is seasonally the weakest period of the year. Momentum has remained strong through the first weeks of our second quarter driven by solid demand from customers and substantial price increase initiatives which are required to recover rapidly rising raw material costs.”
Woltz said the full-year outlook for 2021 is cautiously optimistic, although subject to uncertainties surrounding COVID-19 effects on the economy and related uncertainties with respect to funding availability for non-residential construction projects. Woltz said the company is “hopeful that the new Administration and Congress are successful in negotiating an infrastructure initiative that would shore up confidence in these markets and address critical infrastructure deficiencies.”
Woltz also commented on the January 8 US International Trade Commission (ITC) ruling in the company’s favor with respect to PC Strand trade cases pending against eight countries; the ruling resulted in the implementation of duties on their exports to US markets ranging from 24 percent to 194 percent of value. Woltz said he expects final determinations against seven additional countries during the third fiscal quarter, and separately, he expects final determinations in the company’s standard welded wire reinforcing trade cases against Mexico before the end of the current quarter.