Encore Wire Corporation (WIRE)
Q1 2012 Earnings Call
April 25, 2012 11:00 am ET
Daniel L. Jones – President and Chief Executive Officer
Frank J. Bilban – Vice President and Chief Financial Officer
Kerry Rigdon – Mayberry Partners
Anthony C. Kure – KeyBanc Capital Markets Inc.
Brad Evans – Heartland Advisors
Brian Gibson – Edward Jones
Robert Kelly – Sidoti & Company
Eric Marshall – Hodges Capital Management
Ladies and gentlemen hello and welcome to today’s Encore Wire First Quarter Earnings Call. Please note that all lines are on listen-only mode and there will be a question-and-answer session at the end of the presentation. (Operator Instructions)
And now to start of our conference, I would like to welcome and turn the call over to Mr. Daniel Jones, President and Chief Executive Officer. Go ahead, please.
Daniel L. Jones
Thank you, [Tuwana] and good morning, ladies and gentlemen and welcome to the Encore Wire Corporation quarterly conference call. As stated, I’m Daniel Jones, the President and Chief Executive Officer of Encore Wire and with me this morning is Frank Bilban, our Chief Financial Officer. The results in the first quarter of 2012 were effective by somewhat weal processing in our market, compared to the first and the fourth quarters of 2011.
Building on our prices and margins were impacted negatively by the volatility of copper prices during the quarter. Copper traded erratically which made it difficult for us to maintain any top of industry announced price increases. For example, Comex prices ranged from a low of $3.41 a pound to a high of $3.97 a pound and kept balancing between those two points throughout the quarter with large swings occurring within the span of several days. This disrupted our customers buying patterns and enticed our competitors to cut or hold prices, lowering margins. The performance of our stock and the prolonged industry recession has been exceptional.