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Apr 02, 2022
Insteel Q2 2022 Earnings Report
Insteel reported record net earnings due to strong demand and price increases.
Key Takeaways
Insteel Industries reported record quarterly net earnings of $39.0 million, or $1.99 per diluted share. Net sales increased to $213.2 million driven by a 65.4% increase in average selling prices.
Net earnings reached a record $39.0 million, or $1.99 per diluted share.
Net sales increased to $213.2 million.
Average selling prices increased by 65.4%.
Gross profit increased to $57.1 million with gross margin widening to 26.8%.
Insteel
Insteel
Forward Guidance
Insteel expects continued strong performance due to underlying strength across all non-residential construction markets together with the usual seasonal upturn in demand that occurs during our third and fourth quarters.
Positive Outlook
- Momentum across our business remains positive driven by robust demand from our customer base
- Price increase initiatives to recover rapidly rising raw material, labor, utility and freight costs
- Continued strong performance due to underlying strength across all our non-residential construction markets
- Usual seasonal upturn in demand that occurs during our third and fourth quarters.
- Supplemented our requirements with offshore material to bridge the gaps
Challenges Ahead
- Concerns surrounding inadequate supplies of domestically produced wire rod persist
- Concerns about the impact of record high steel prices on demand for reinforcing products
- Tight supply conditions for raw materials
- Lower shipments resulting from tight supply conditions for raw materials.
- Increase in net working capital, which used $32.6 million of cash in the current year quarter.