Encore Wire Corporation (
Q2 2011 Earnings Call
July 28, 2011 11:00 am ET
Daniel Jones – President and CEO
Frank Bilban – CFO
Robert Kelly – Sidoti
Eric Marshall [ph]
Kerry Rigdon – Mayberry Partners
Tom Brashear – Preston Capital Management
Hello, ladies and gentlemen, and welcome to the Encore Wire, second quarter earnings conference. As a reminder, all of your lines will be on a listen-only mode. However, we will have a Q&A session at the end of the call. (Operator instructions) At this time, I would like to introduce and turn the call over to Mr. Daniel Jones, President and CEO of Encore Wire. Go ahead, Mr. Jones.
Thank you, Angie, and good morning ladies and gentlemen and welcome to the Encore Wire Corporation quarterly conference call. I’m Daniel Jones, the President and Chief Executive Officer of Encore Wire. With me this morning is Frank Bilban, our Chief Financial Officer.
We’re pleased to announce strong quarterly earnings in the midst of the severe recession currently taking place in the construction industry. As we’ve repeatedly noted, the key metric to our earnings is the spread between the price of wire sold and cost of raw copper purchased in any given period.
The spread increased 22.2% in the second quarter of 2011, versus the second quarter of 2010, while our unit volume shipped in the second quarter of 2011 increased 1.9% versus the second quarter of 2010. For the six months ended June 30, 2011, the spread increased 30.4% versus the six months ended June 30 2010, driving our increased earnings. On a unit volume for the same time period of six months 2010 versus six months 2011, increased 13.4%,