NEW YORK Encore Wire Corp.s earnings nearly tripled in the third quarter on stronger building wire sales.
The McKinney, Texas-based company posted net income of $13.8 million for the three months ended Sept. 30 vs. $5.5 million in the same period last year on a 15.1-percent increase in sales to $309.9 million.
The company reported a 15-percent year-on-year increase in unit volume, measured by the amount of copper contained in wire sold, but that increase was offset slightly by a 4-percent decrease in the average price per copper pound sold, which corresponded with a 7.5-percent decline in raw copper prices over the same period, Encore said.
The company cited a 6.2-percent increase in margin between the cost of raw copper purchased and the price of copper wire sold as a "positive trend" that continued to drive its business. Encore also noted that the "expansion of product offerings over the last several years to our existing customer base has been critical to maintaining and perhaps boosting our market share."
"Our aluminum plant is now on line and capable of producing our full line of products," president and chief executive officer Daniel L. Jones said. "Our balance sheet is very strong. We have no long-term debt, and our revolving line of credit is paid down to zero. In addition, we had $16.1 million in cash at the end of the quarter."