Synalloy Corporation Announces Second Quarter Results
SPARTANBURG, S.C., July 26, 2010 (GLOBE NEWSWIRE) -- Synalloy Corporation (Nasdaq:SYNL), a producer of stainless steel pipe, fabricator of stainless and carbon steel piping systems, and producer of specialty chemicals, announces that the second quarter of 2010 produced net earnings of $1,078,000, or $0.17 per share, on a 68% sales increase to $36,349,000. This compares to a net loss from continuing operations of $259,000, or $0.04 loss per share, on sales from continuing operations of $21,692,000, in 2009's second quarter. For the six months ended July 3, 2010, sales were $71,549,000, up 37% from sales of $52,085,000 from continuing operations for the same period of 2009. Net earnings for the first six months of 2010 were $1,160,000 or $0.18 per share. Net earnings from continuing operations for the first six months of 2009 were $81,000 or $0.01 per share.
Sales increased 78% in the second quarter of 2010 from the same quarter a year earlier while operating income was $963,000 compared to a $108,000 loss a year earlier. The sales increase resulted from a 72% increase in unit volumes combined with a 4% increase in average selling prices. The increase in unit volume came from a 140% increase in commodity pipe sales that reflect the more aggressive marketing of this product to gain market share. The increased unit volumes let us operate the plant at a more efficient level and retain our experienced employees. Non-commodity unit volumes, aided by the August 31, 2009 acquisition of Ram-Fab, LLC, were essentially unchanged. Second quarter's selling prices, when compared to 2009's second quarter, reflects higher stainless steel prices partially offset by a change in product mix to a higher percent of lower-priced commodity pipe from higher-priced non-commodity pipe and piping systems. The increase in operating income in the second quarter of 2010 was primarily due to profits produced by our FIFO inventory method from the rising price of raw materials compared to little effect from this a year earlier.
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