wiredInUSA - December 2011
10
Houston Wire & Cable Company
has released operating results for
the third quarter of 2011. Highlights
for the third quarter of 2011, compared
to the prior year period, include:
Record sales of $105.8 million,
increased
16.8% from $90.5 million
Gross margin at 21.7%,
increased
230 basis points from 19.4%
Net income of $5 million,
increased
122.3% from $2.2 million
Diluted EPS of $0.28,
increased
115.4% from $0.13 per share
Declared dividend of $0.09 cents per
share, an
increase
of 5.9% from $0.085
cents per share in 2010
Repair and Replacement business,
also referred to as maintenance, repair
and operations (MRO), was negatively
impacted in the quarter, as a result of
implementing a new software system
in the acquired mechanical wire
businesses. Management expects this
situation to improve during the fourth
quarter, as the new software system
will allow for increased efficiencies in
reporting and management. Excluding
the estimated impact of these software
issues, MRO sales were up approximately
10-15% for the third quarter of 2011.
Management estimates that increased
copper prices, which primarily affects
stock shipments and trails current market
movements due to the company’s
average cost inventory accounting
treatment, had a favorable impact
on sales of approximately 8%.
Gross profit increased 30.9 %
to $23 million from $17.6 million,
due to higher sales volume
and improved gross margin.
Houston
Wire & Cable
Company
report
