Business
Friedman Industries, Incorporated Announces First Quarter Results, Provides Sinton Update and Near-term Outlook
The Company announced today its results of operations for the fiscal first quarter. LONGVIEW, Texas, Oct. 12, 2022 (GLOBE NEWSWIRE) -- For the quarter ended
About this update from Friedman Industries Inc.
[{"type":"text","content":"The Company announced today its results of operations for the fiscal first quarter.\nLONGVIEW, Texas, Oct. 12, 2022 (GLOBE NEWSWIRE) -- For the quarter ended June 30, 2022 (the “2022 quarter”), the Company recorded net earnings of $11,184,374 ($1.55 diluted earnings per share) on net sales of $161,803,090 compared to net earnings of $11,311,797 ($1.64 diluted earnings per share) on net sales of $65,916,439 for the quarter ended June 30, 2021 (the “2021 quarter”). Earnings before income taxes was $14,657,458 for the 2022 quarter compared to $14,268,677 for the 2021 quarter. The 2022 quarter is the second most profitable quarter in Company history. Results for the 2022 quarter were positively impacted by an acquisition made by the Company during the quarter. On April 30, 2022, the Company acquired steel processing facilities in East Chicago, IN and Granite City, IL from Plateplus, Inc. and also acquired certain steel inventory from Plateplus’ Houston, TX and Loudon, TN facilities. During the 2022 quarter, the East Chicago and Granite City operations contributed revenue of approximately $53.6 million and earnings before income taxes of approximately $4.3 million. Plateplus provided toll processing services related to the inventory acquired in Houston and Loudon with sales of this inventory contributing revenue of approximately $28.6 million and earnings before taxes of approximately $2.1 million in the 2022 quarter. The Company also experienced above average margins during the 2022 quarter due primarily to a sharp increase in steel prices just prior to the quarter and during the first part of the quarter that was triggered primarily by industry reaction to the Russian invasion of Ukraine. “The acquisition we completed during the 2022 quarter is transformative for Friedman in a multitude of ways,” said Michael J. Taylor, President and Chief Executive Officer. “The mid-western portion of the United States has a heavy concentration of steel consumers and has historically been out of Friedman’s competitive reach. The acquisition of facilities in Granite City and East Chicago expands our competitive geography allowing us to capitalize on the opportunities available in this region of the United States. The facilities have great equipment and produce high quality material. The acquisition of inventory in Houston and Loudon provided short-...