North American Galvanizing Reports Record 1st Quarter Earnings
04/22/2008 - North American Galvanizing & Coatings announces record net income of $3.1 million on sales of $20.7 million for the first quarter ended March 31, 2008.
North American Galvanizing & Coatings, Inc. announced record net income of $3.1 million on sales of $20.7 million for the first quarter ended March 31, 2008.
The $3.1 million record net income ($.24 per share*) compares to net income of $2.3 million ($.19 per share) for the year-ago first quarter. Cash flow provided by operating activities was $2.5 million compared to cash used of $.2 million for the same period in 2007.
Revenue declined 12% over the prior year as changes in zinc costs impacted sales prices. Average selling prices were 5.2% lower than the prior-year first quarter and 1.3% lower than the fourth quarter of 2007. A major factor was the market price of zinc, as quoted by the London Metal Exchange, which declined 30% and 8% for the comparable periods.
Volumes were 4% higher than the fourth quarter of 2007, but 7% lower than the record volumes set in the first quarter of 2007. Volumes were impacted by an unusually high number of snow days, which affected production in the northern plants located in Colorado, Kansas City, St. Louis and Canton, Ohio.
“This quarter's results represent the ninth consecutive quarter of record net income for the company,” said Ronald J. Evans, President and CEO, commenting on the results for the first quarter of 2008. “We continue to focus our attention on providing our customers quality product and service, operating efficiently and cost control.
“I am also pleased to report that our debt level remains at zero,” added Evans. “Additionally, we purchased approximately $1.1 million of company stock in open market transactions during the quarter. We believe the company is well positioned for the future."
*All per share data are reported on a fully-diluted basis.
North American Galvanizing is a leading provider of hot-dip galvanizing and coatings for corrosion protection of fabricated steel products. The company conducts its galvanizing and coating business through a network of plants located in Canton, Ohio; Denver, Hurst (Dallas/Forth Worth), Houston, Kansas City, Louisville, Nashville, St. Louis and the Tulsa area.
