3/16/2011 2:08:00 AM
NEWS BRIEFS
Tree Island Revenue Falls Amid Inventory Flux
Tree Island Wire Income Fund reported revenue declined 20% to $132.4 million in 2010.
Gross profit improved by $31.4 million to $6.4 million, while EBITDA adjusted for foreign exchange also improved by $36.5 million to a loss of $17 thousand. Net loss for the year was reduced by $12.1 million to $14.8 million.
Tree Island’s performance in the fourth quarter included a 3% revenue gain to $27.7 million. Gross profit improved from a loss of $3.4 million to positive $0.5 million, while gross profit per ton also increased from a loss of $160 per ton, to a profit of $25 per ton.
“The significant improvement in gross profit and gross profit per ton reflects Tree Island’s ongoing focus on profitability, a continued focus on cost control and a reduction in costs as a result of the reversal of a one time prior period accrual of $1.6 million,” the company stated.
Final quarter EBITDA adjusted for foreign exchange was $0.5 million, a $5.9 million improvement from last year’s EBITDA loss adjusted for foreign exchange of $5.4 million.
“These gains were partially offset by lower sales volumes and competitive pricing pressures due to the ongoing poor economic conditions in some of our primary end markets, particularly in the Western United States.”
“We are pleased with our fiscal improvements and our success in keeping inventories closely aligned with market conditions,” said Tree Island Industries CEO Ted Leja. “While market demand remains weak and raw material prices are currently volatile, we continue to pursue strategic growth opportunities.”
Fund chairman Amar Doman noted: “The full year results are a testament to management’s efforts in rebuilding a fundamentally strong and sound business during difficult times, which positions the Fund to take advantage of a recovery in any of its principal markets.”
Launched on November 12, 2002, the Fund holds a 100% ownership interest in Richmond, BC-based Tree Island Industries Ltd., which produces fasteners and other wire products. ©2011 GlobalFastenerNews.com
Related Stories:
• Alcoa Completes Acquisition of TransDigm Fastener Operations
• Simmi Sakhuja at SEFA: “Perception” Important Factor in Fastener Pricing
Related Links:
Share: