11/9/2011 12:05:00 AM
NEWS BRIEFS
Tree Island Achieves High Prices on Raw Material Hikes
Tree Island Wire Income Fund reported third quarter revenue rose 21% to $38 million, boosted by higher sales volumes and price increases related to rising raw material costs.
Third quarter gross profit increased to $1.4 million, with gross profit per ton more than doubled to $51 per ton. “The increase in gross profit and gross profit per ton primarily reflects increased capacity utilization, higher selling prices and the net benefit of a stronger Canadian dollar on US dollar denominated costs incurred by Canadian operations.”
EBITDA loss decreased during the quarter to a loss of $1.3 million versus an EBITDA loss of $2.2 million during the third quarter of 2010.
Net loss dropped 13% to $4.6 million, or $0.20 per unit during the third quarter of 2011.
Nine-month revenue gained 9.8% to $114.9 million, with gross profit nearly doubling to $9.4 million. EBITDA increased to $2.4 million, with net losses trimmed to $8.6 million.
“A significant amount of work has gone into the Fund’s success in growing volumes and achieving profitable sales,” stated CEO Dale MacLean. “All of this has been accomplished in the face of high raw material costs and a market where there is latent capacity coupled with a highly competitive and aggressive pricing environment.”
MacLean projected lower demand in construction and agricultural markets during the final quarter due to a seasonal slowdown of activity in the winter months.
Tree Island Wire Income Fund reported third quarter revenue rose 21% to $38 million, boosted by higher sales volumes and price increases related to rising raw material costs.
Third quarter gross profit increased to $1.4 million, with gross profit per ton more than doubled to $51 per ton.
“The increase in gross profit and gross profit per ton primarily reflects increased capacity utilization, higher selling prices and the net benefit of a stronger Canadian dollar on US dollar denominated costs incurred by Canadian operations.”
EBITDA loss decreased during the quarter to a loss of $1.3 million versus an EBITDA loss of $2.2 million during the third quarter of 2010.
Net loss dropped 13% to $4.6 million, or $0.20 per unit during the third quarter of 2011.
Nine-month revenue gained 9.8% to $114.9 million, with gross profit nearly doubling to $9.4 million. EBITDA increased to $2.4 million, with net losses trimmed to $8.6 million.
“A significant amount of work has gone into the Fund’s success in growing volumes and achieving profitable sales,” stated CEO Dale MacLean. “All of this has been accomplished in the face of high raw material costs and a market where there is latent capacity coupled with a highly competitive and aggressive pricing environment.”
MacLean projected lower demand in construction and agricultural markets during the final quarter due to a seasonal slowdown of activity in the winter months. 2011 GlobalFastenerNews.com
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