NEW YORK Synalloy Corp. posted higher first-quarter net income despite crimped margins in its metals segment.
Imports of stainless pipe from Malaysia, Vietnam and Thailand "are entering the country at significantly reduced prices," the company said in an April 19 earnings release.
"This factor forced the segment to reduce their prices accordingly to retain market share," the Spartanburg, S.C.-based producer of stainless steel pipe and fabricated stainless and carbon steel piping systems said.
As a result, Synalloyalong with two other manufacturers of the productis looking to take legal action against manufacturers in those countries to stop them from bringing pipe into the U.S. market, the company said.
Stainless pipe shipments were also crimped because U.S. distributors "continued to monitor nickel prices and kept their large restocking buys on hold," it added.
Synalloy posted net income of $1.47 million for the three months ended March 30, up 9.6 percent from $1.38 million a year earlier, on sales that rose 22.1 percent to $57.8 million.
Synalloy added 30 employees at its Bristol Metals LLC unit during the quarter as it started shipping carbon pipe for a nuclear project it won last year (amm.com, Aug. 22
), and it continues to see strong demand for fiberglass and steel tanks due to the oil drilling boom in the Permian Basin and Eagle Ford Shale, it said.