International Wire Announces Operating Results For The Third Quarter And The First Nine Months Of 2016

International Wire Group Holdings, Inc. (the "Company") (OTC Pink: ITWG) today announced results for the third quarter and for the nine months ended September 30, 2016. Operating income for the third quarter was above comparable 2015 results, however, operating income for the nine months ended September 30, 2016 was below comparable 2015 results.

"Third quarter and first nine months results reflect continued challenging demand in our largest markets served. Sales to our largest U.S. industrial and energy customers softened further in the third quarter. In the automotive sector, overall car production remains steady, but declines in commercial truck market demand coupled with increased competitive capacity supplying the Mexican automotive market has impacted volumes. Medical products sales for the quarter improved sequentially, while demand for standard aerospace products sold through distribution remained soft in the quarter. Electronics product sales were solid in the quarter and continued to be supported by a successful customer de-integration project," said Edwin J. Flynn, Chief Executive Officer of International Wire Group Holdings, Inc.

Third Quarter Results

Net sales for the quarter ended September 30, 2016 were $129.1 million, a decrease of $25.0 million, or 16.2%, compared to $154.1 million for the same period in 2015. This decrease was partly due to a lower selling price of copper and a higher proportion of tolled copper. Tolled copper is customer-owned copper. The value of tolled copper is not included in net sales and costs of sales. Excluding the effects of lower copper prices and a lower proportion of tolled copper, net sales decreased $11.1 million, or 7.9%, versus the same period in 2015. This decrease resulted from $13.4 million of lower sales volume, partially offset by $2.3 million of higher customer pricing/mix. Total pounds of product sold in the third quarter of 2016 decreased by 9.5% compared to the third quarter of 2015.