8/8/2014 1:58:00 AM
NEWS BRIEFS
Higher Volumes Drive Tree Island Revenue Gains

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Tree Island Steel Ltd. reported revenues, including fasteners, increased 17.7% to $47.8 million in the second quarter of 2014, driven by a 25% jump in volume.  Gross profit declined 15% to $4.6 million, and gross margin per ton declined 31% to $127 per ton.  Q2 gross profit as a percentage of revenue was 9.7% versus 13.3% in Q2 2013. The impact to EBITDA was a decrease to $1.9 million from $2.9 million during the corresponding period in 2013.

For the first six months of 2014, revenues amounted to $93.7 million on 71,534 tons, compared to $78.7 million on 56,762 tons during the same period in 2013.

“The higher revenues in 2014 reflect increased volumes particularly in the Industrial and Agricultural market segments,” the company stated. 

Six-month gross profit increased to $9.9 million at a margin of 10.6%, compared to $9.6 million and a margin of 12.2%, while gross profit per ton decreased to $139 per ton versus $170 per ton in the corresponding period in 2013. 

“The demand for our products, coupled with our quality and brands across our markets, continue to fuel our growth,” stated CEO Dale MacLean.