NEW YORK Encore Wire
Corp.s net income dropped in the first quarter due to
lower copper selling prices.
The McKinney, Texas-based wire
fabricator reported net income of nearly $6.4 million for the
three months ended March 31, down 4.5 percent from $6.7 million
in the first quarter of 2012 on sales that fell 5.4 percent to
$265.4 million from $280.5 million.
Most of the decline in revenue
was attributed to a 5.3-percent fall in the average selling
price of wire per pound of copper. Copper unit volumes,
measured in pounds of copper contained in the wire sold, also
decreased but at a lesser pace. Volumes fell 3.1 percent year
on year in the first quarter, the company said, without
providing specific figures.
"The first quarter of this year
was another fairly steady volume quarter, considering the time
of year and the current economic and construction industry
environment. We believe our expansion of product offerings over
the last six years to our existing customer base has been
critical to maintaining and perhaps boosting our market share,"
president and chief executive officer Daniel L. Jones said in a
statement April 24.
The companys aluminum
building wire plant, which began production in the fourth
quarter of 2012, accounted for 5.7 percent of net sales dollars
for the first quarter vs. 2.9 percent a year earlier. The last
of the equipment is being delivered and installation should be
complete by the end of the second quarter, Encore added.