NEW YORK Wire producer Tree Island Steel Ltd. was in the red in the third quarter despite higher revenue.
The Vancouver, British Columbia-based company posted a net loss of Canadian $43,000 ($41,000) for the three months ended Sept. 30, a significant improvement from a C$1.99-million loss in the same period last year, on revenue that increased 14.8 percent to just over C$39 million ($37.21 million) thanks to a 21.1-percent jump in sales volume to 29,345 tons from 24,242 tons.
"We continue to see strength and momentum in demand building up in some of our key end markets in the U.S., which combined with our internal priorities leads us to maintain a cautiously optimistic view in the near- to mid-term," said president and chief executive officer Dale MacLean.
The higher revenues reflected increased volumes in the industrial and commercial construction market segments, and the company also benefited from lower raw material prices in the quarter compared with a year earlier.
The region has not seen particularly strong wire demand, however, according to Belgiums NV Bekaert SA, which announced last week that it would close its steel wire plant in Surrey, British Columbia, due to heavy competition from imports and a thinning customer base (amm.com, Nov. 7).