NEW YORK Falling tubular selling prices and volumes sent Friedman Industries Inc.s net income tumbling 72.1 percent in fiscal 2014.
"In fiscal 2014, the company experienced soft market conditions and reduced demand for its products and services," the Houston-based company said in a June 11 earnings report to the Securities and Exchange Commission.
Tubular sales for the fiscal year ended March 31 fell 27.9 percent to a little more than $50 million from $69.4 million a year earlier, with sales volumes dropping 23.9 percent to 70,000 tons from 92,000 tons at an average selling price that declined 5.2 percent to $715 per ton from $754 per ton.
"Management believes the lower demand for its tubular products is related to soft market conditions created by oversupply, foreign competition and, more significantly, a weak U.S. economy," the company said.
Friedman has spent about $1.5 million so far on a planned $9.2-million pipe-threading facility in Lone Star, Texas (amm.com, Feb. 4), it said.
The companys coil segment recorded annual sales of $66.14 million, down 1.4 percent from $67.05 million a year earlier, despite sales volumes that increased 1.1 percent to 93,000 tons from 92,000 tons. Average selling prices fell 2.3 percent to $710 per ton from $727 per ton.
Friedmans business segments include pipe manufacturing, steel coil processing, and steel and pipe distribution.