5/15/2012 12:52:00 AM
NEWS BRIEFS
Tree Island: Volume and Price Gains Drive Double-Digit Revenue Growth
Tree Island Wire Income Fund reported higher sales volumes and selling prices produced a 13% increase in revenues to $44 million during the opening quarter of 2012.
Sales volumes increased 2% to 30,618 tons.
Gross profit decreased 10% to $4 million, while gross profit per ton dropped by $16 per ton to $130 per ton, hurt by raw material cost hikes. EBITDA decreased 15% to $1.7 million.
“While we experienced early signs of an improved selling environment, the continued global economic uncertainty coupled with aggressive pricing in certain key product categories provides the backdrop for our outlook to remain cautious,” stated CEO Dale R. MacLean.
Fund Chairman Amar Doman called Tree Island’s top line performance “promising” from a market demand perspective.
“The macro-economic environment at large remains volatile, however there also seem to be some early indications and pockets of strength in certain of our key end markets.”
For 2011 full-year revenue rose to $150 million, while gross profit improved to $10.5 million. Sales volumes climbed 11% to 110,314 tons. ©2012 GlobalFastenerNews.com
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