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Jul 02, 2022
Insteel Q3 2022 Earnings Report
Insteel reported strong demand and implemented price increases.
Key Takeaways
Insteel Industries reported net earnings of $38.6 million, or $1.96 per diluted share, for the third quarter of fiscal 2022, up from $18.4 million, or $0.94 per diluted share, for the same period a year ago. Net sales increased to $227.2 million from $160.7 million for the prior year quarter.
Net earnings increased to $38.6 million, or $1.96 per diluted share.
Net sales increased to $227.2 million.
Average selling prices increased by 53.9%.
Gross profit increased to $58.1 million.
Insteel
Insteel
Forward Guidance
Insteel expects its historically strong financial performance to continue for the fiscal fourth quarter.
Positive Outlook
- Markets remain robust.
- Economic indicators point to continued momentum through the balance of the calendar year.
- Deliveries of offshore steel wire rod alleviated raw material shortfalls.
- Innovative work schedules and higher pay levels should support a ramp up in production.
- Capital investment plan should reduce labor intensity and operating costs.
Challenges Ahead
- Increasingly contending with unusually tight labor markets.
- Softening conditions in the market for standard welded wire reinforcement.
- Slowing new home construction.
- Customers more tightly manage inventories.
- Demand for standard welded wire reinforcement is driven by new home construction.