Synalloy Corp. expects to post a fourth-quarter loss as labor
efficiencies fell "well below profitable levels" at its
fabrication subsidiaries after the company doubled staff to
handle a growing backlog.
"Both of our
fabrication units have had difficulty adding experienced
welders to support our current backlog. As a result, we are now
working with our customers to assess how we can better align
our production capacity with their delivery schedules," the
Spartanburg, S.C.-based company said Dec. 17.
BristolFab unit experienced a pre-tax loss of $1.4 million
during October and November as a result of the lower
shipments of stainless pipe increased in October and November
although the product mix was less favorable, with a higher
percentage of shipments of pipe under 6 inches in diameter,
which has a lower conversion margin than large-diameter pipe,
the company said.
business includes the production of stainless steel pipe,
fiberglass and steel storage tanks, specialty chemicals, and
stainless and carbon piping systems fabrication.