Ivaco Q3 Sales Up, Profit Down

Jason Sandefur

Ivaco Inc. reported third quarter sales in its Fabricated Steel Products segment, including fasteners, increased 4.4% to $123.8 million, with Q3 operating earnings falling 11% to $6.7 million. For the first nine months of 2002, Fabricated Steel sales grew 1.3% to $387 million, while operating earnings were $36.2 million.
Overall Q3 sales rose 8.2% to $228.8 million, while operating revenue fell 28% to $8.8 million. Higher costs of raw material and increased union labor expenses impacted Q3 profits and are expected to reduce fourth quarter results, Ivaco claimed.
For the first nine months of 2002, consolidated sales grew 3.2% to $704 million. Operating earnings gained 2% to $58.3 million. Despite disappointing operating earnings in 2002, CEO Paul Ivanier projected 2003 operating earnings for the Montreal steelmaker will exceed $100 million. Web: ivaco.com �2002 FastenerNews.com