Business
Friedman Industries, Incorporated Announces Second Quarter Results and Provides Near-term Outlook
LONGVIEW, Texas, Dec. 02, 2022 (GLOBE NEWSWIRE) -- The Company announced today its results of operations for the fiscal second quarter. For the quarter ended
About this update from Friedman Industries Inc.
[{"type":"text","content":"LONGVIEW, Texas, Dec. 02, 2022 (GLOBE NEWSWIRE) -- The Company announced today its results of operations for the fiscal second quarter. For the quarter ended September 30, 2022 (the “2022 quarter”), the Company recorded net earnings of $2,470,908 ($0.34 diluted earnings per share) on sales of $149,692,409 compared to net earnings of $13,177,614 ($1.91 diluted earnings per share) on sales of $92,570,895 for the quarter ended September 30, 2021 (the “2021 quarter”). The 2022 quarter was a period of considerable margin compression associated with declining hot-rolled coil (“HRC”) prices throughout the quarter. Prior to the quarter, HRC prices experienced a significant and abrupt increase in reaction to the Russian invasion of Ukraine. HRC prices increased approximately 60% from the beginning of March 2022 to the end of April 2022 and then declined approximately 47% by the end of the 2022 quarter. The compressed physical margins were partially offset by net hedging related gains of approximately $2,259,000 for the 2022 quarter. In comparison, the 2021 quarter was the most profitable quarter in the Company’s history with results driven by a historic rise in HRC prices creating a high margin environment in a period of historically high steel prices. “The 2022 quarter presented significant challenges due to the declining HRC price trend entering the quarter and continuing throughout the quarter,” said Michael J. Taylor, President and Chief Executive Officer. “A combination of sales strategy, inventory management and hedging protection allowed us to remain profitable in a period of significant headwinds to profitability. Successful execution of strategy in challenging periods like the 2022 quarter is what affirms the potential we see in Friedman,” Taylor concluded. SUMMARY OF OPERATIONS (unaudited) Three Months Ended September 30, Six Months Ended September 30, 2022 2021 2022 2021 Net Sales$149,692,409 $92,570,895 $311,495,499 $158,487,334 Total costs and other income or loss 146,486,892 75,078,581 293,632,524 126,726,343 Earnings before income taxes 3,205,517 17,492,314 17,862,975 31,760,991 Income taxes 734,609 4,314,700 4,207,693 7,271,580 Net earnings$2,470,908 $13,177,614 $13,655,282 $24,489,411 Net earnings per share: Basic$0.34 $1.91 $1.88 $3.55Diluted$0.34 $1.91 $1.88 $3.55 COIL SEGMENT OPERATIONS Coil segment sales for the 2022...