Insteel reports Q3 EPS 78c vs. 34c last year

Reports Q3 revenue $179.9M vs. $145.8M last year. Q3 results include $0.9M in restructuring charges and acquisition-related costs, which collectively reduced net EPS by 3c. “As we had previously indicated, we experienced sourcing challenges during our Q3 related to reduced domestic capacity to produce steel wire rod, our primary raw material,” said H.O. Woltz III, CEO. “Reduced domestic supplies of wire rod disrupted our production schedules, extended lead times, and impacted our ability to fully meet customer demand. As we indicated we would do, we turned to international markets to fill the supply gap, which will ease supply constraints moving forward into Q4. Alongside these availability challenges, we experienced sharply escalating wire rod prices in both domestic and international markets. Contributing to the upward pressure on prices was the unexpected decision by the Administration to double the Section 232 tariff on steel imports, which will affect our cost for substantial quantities of offshore purchases and require disciplined pricing strategies moving forward as we seek to recover higher costs in our markets. Despite these challenges, we remain confident in our business outlook. Our recent acquisitions are meaningfully contributing to our performance by enhancing shipment volumes and improving our competitive positioning in certain geographies. We are encouraged that customers generally express optimism about their business prospects, and demand has improved, even as broader macroeconomic indicators for the construction activity suggest a more cautious environment. That said, we are taking proactive steps to manage our costs and remain confident in our long-term competitive positioning.”