NEW YORK International Wire Group Holdings Inc. saw net sales decline 22.6 percent in the third quarter compared with the same period last year due to lagging copper prices and unfavorable currency exchange rates.
The Camden, N.Y.-based copper wire manufacturer logged sales that were just shy of $171 million for the three months ended Sept. 30, down from $220.9 million in the same 2011 period. It attributed the pullback to a higher proportion of tolled copper and lower customer pricing, in addition to lackluster copper prices.
The drop in sales came despite a 5.7-percent rise in sales volumes for the quarter vs. the same period last year, primarily due to higher demand for bare, silver-, nickel- and tin-plated copper wire.
Despite the drop in revenue, net income more than doubled to almost $5 million from $2.2 million in the third quarter last year, which the company attributed to lower taxes and higher operating income.
Operating income rose 7.4 percent year on year during the quarter to $12.1 million.
"Continued higher demand for our bare wire products and increased plant utilization in our high- performance conductors business were the major contributing factors to record operating results for the third quarter and first nine months," chief executive officer Rodney D. Kent said in a statement.