US-based steel producer Insteel Industries Inc. has announced its financial results for the third quarter of the fiscal year 2023-24 ended June 29.
In the given quarter, the company’s net earnings amounted to $6.6 million, compared to $10.6 million recorded in the same quarter of the previous fiscal year, due to narrower spreads between selling prices and raw material costs compared to the third quarter of the previous fiscal year despite higher shipments, while its net sales declined by 12.0 percent year on year to $145.8 million from $165.7 million recorded in the same quarter of the previous year, mainly due to lower selling prices, as a result of competitive pricing pressures in welded wire reinforcing markets and the impact of low-priced PC strand imports.
Moreover, in the third quarter, Insteel’s shipments increased by 20.8 percent, while its average selling prices declined by 5.3 percent, both on quarter-on-quarter basis.
The company also stated that, despite the negative impact of revenues from declining selling prices, improving demand for its reinforcing products validates the view that inventories have largely been corrected, which should lead to higher shipments going forward.
“Looking ahead to the fiscal 2025, we are optimistic about our business outlook. Easing inflation and the potential for lower interest rates will help drive demand in both our commercial and residential end markets, while the infrastructure related portion of our business should begin to benefit from federal spending associated with the Infrastructure Investment and Jobs Act,” H.O. Woltz III, president and CEO of Insteel, commented.