NEW YORK Falling tubular selling prices and volumes, and lower coil sales took a toll on Friedman Industries Inc.s earnings in its fiscal second quarter.
"Management believes the decrease in (tubular) sales was related to soft market conditions created by oversupply, foreign competition and, more significantly, a weak U.S. economy," the company said Nov. 13 in a Securities and Exchange Commission filing.
The Humble, Texas-based company posted net income of $27,659 for the three months ended Sept. 30. down 98.3 percent from $1.64 million in the same period last year, on sales that fell 21.1 percent to $26.31 million from $33.33 million.
Tubular sales for the quarter fell nearly 30 percent to $11.63 million from $16.61 million a year earlier, with sales volumes decreasing 29.2 percent to 17,000 tons from 24,000 tons and average selling prices falling nearly 4 percent to $677 per ton from $705 per ton in the same comparison.
The companys coil segment recorded sales of $14.68 million, down 12.2 percent from $16.72 million in the fiscal second quarter of last year, on sales volumes that fell to 21,000 tons from 23,000 tons and average selling prices that declined 5.6 percent to $694 per ton from $735 per ton in the same comparison.
Friedman processes and distributes hot-rolled steel coil and makes and distributes tubular products.
The companys fiscal first-quarter earnings had also been negatively affected by declining tubular sales (amm.com, Aug. 14).