surged 20% late Monday after the maker of copper wire for houses said third-quarter sales set a company record.
The McKinney, Texas, company made $11 million, or 48 cents a share, up from the year-ago $6 million, or 27 cents a share. Revenue rose to $207 million from $159 million a year earlier. Shipment volume, measured in copper pounds of wire sold, rose 6.4% sequentially.
"We are encouraged by the strong increase in sales and margins during the third quarter versus the first half of 2005," CEO Daniel Jones said. "Margins had been low in late 2004 and most of the first half of 2005. They began to trend upward late in the second quarter of 2005 and continued to expand during the third quarter. Our industry appears to be continuing the pricing discipline that started in the second quarter, which we believe should enhance our margins going forward.
"The price of copper, our major raw material, continues to be strong, which has historically enhanced our margins," Jones added. "Other inputs such as PVC resin and energy are also rising in cost as the gulf coast hurricanes have impacted supplies of these components, but we have been successful in passing these cost increases on through the price of our wire. The construction of our new armored cable plant continues on schedule. This extension of our product line is expected to begin producing sales in mid-2006."
Late Monday, shares of Encore jumped $3.80 to $23.