Synalloy Corporation Announces Third Quarter Results
SPARTANBURG, S.C., Oct. 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 third quarter of 2010 produced net earnings of $1,412,000, or $0.22 per share, on a 63% sales increase to $41,932,000. This compares to a net income from continuing operations of $281,000, or $0.04 per share, on sales from continuing operations of $25,712,000, in 2009's third quarter. For the nine months ended October 2, 2010, sales were $113,481,000, up 46% from sales of $77,797,000 for the same period of 2009. Net earnings for the first nine months of 2010 were $2,572,000, or $0.41 per share, compared to net earnings from continuing operations of $362,000 or $0.06 per share for the same period last year.
Sales of $30,871,000 increased 83% in the third quarter of 2010 while operating income was $1,772,000 an increase of 477% from the comparable quarter last year. The sales increase resulted from a 73% increase in unit volumes combined with a 6% increase in average selling prices. The increase in unit volume resulted primarily from higher commodity pipe sales that reflect the more aggressive marketing of these products 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 pipe unit sales volume also increased, reflecting stronger fabrication sales which include the August 31, 2009 acquisition of Ram-Fab, LLC. Third quarter's selling prices, when compared to 2009's third 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. Sales and operating income for the first nine months of 2010 for the Metals Segment increased 51% and 140%, respectively, from the same period of 2009. The nine month sales increase was comprised of a 63% increase in unit volumes partially offset by a 7% decrease in average selling prices.
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