Business
Friedman Industries, Incorporated Announces First Quarter Results and Provides Near-Term Outlook
LONGVIEW, Texas, Aug. 14, 2023 (GLOBE NEWSWIRE) -- Friedman Industries, Incorporated (NYSE American: FRD) announced today its results of operations for the
About this update from Friedman Industries Inc.
[{"type":"text","content":"LONGVIEW, Texas, Aug. 14, 2023 (GLOBE NEWSWIRE) -- Friedman Industries, Incorporated (NYSE American: FRD) announced today its results of operations for the quarter ended June 30, 2023. June 30, 2023 Quarter Highlights: Net earnings of approximately $7.7 millionSales of approximately $137.3 million23% increase in sales volume over prior year quarter volumeWorking capital balance at quarter-end of approximately $113.1 million “Our first quarter results are a great start to fiscal year 2024 as we strive to deliver record earnings for a third year in a row,” said Michael J. Taylor, President and Chief Executive Officer. “Our team did a good job of evaluating and responding to market conditions during the first quarter. As fiscal 2024 continues, we are focused on maximizing sales volume on our existing assets while also evaluating additional growth opportunities for the Company,” Taylor concluded. For the quarter ended June 30, 2023 (the “2023 quarter”), the Company recorded net earnings of approximately $7.7 million ($1.04 diluted earnings per share) on net sales of approximately $137.3 million compared to net earnings of approximately $11.2 million ($1.55 diluted earnings per share) on net sales of approximately $161.8 million for the quarter ended June 30, 2022 (the “2022 quarter”). Sales volume increased from approximately 105,000 tons in the 2022 quarter to approximately 129,000 tons in the 2023 quarter. The growth in sales volume was primarily related to the Company’s Sinton, Texas facility which commenced operations in October 2022 and the 2022 quarter containing only two months of sales activity following the April 30, 2022 acquisition of facilities and inventory from Plateplus, Inc. The lower revenue for the 2023 quarter was primarily the result of pricing dynamics of hot-rolled steel coil (“HRC”) entering and during the 2023 and 2022 quarters. Our operating results are significantly impacted by the market price of HRC and the Company experienced volatility in this price during both the 2023 quarter and the 2022 quarter. Entering the 2022 quarter, HRC prices experienced a sharp and abrupt increase in reaction to the Russian invasion of Ukraine, increasing approximately 60% from March 2022 to April 2022. HRC prices then declined approximately 60% until the middle of December 2022. From late November 2022 until April 2023, dom...