Wolverine Tube, Inc. reported results for the third quarter ended September 29, 2002. Income from continuing operations for the third quarter of 2002 was U.S. $1.8 million, or $0.15 per diluted share, as compared to income from continuing operations of $2.1 million, or $0.17 per diluted share, in the third quarter of 2001, after including a $1.5 million pretax restructuring charge.
Net sales for the third quarter of 2002 were $134.8 million, a one percent decrease from the comparable year-ago quarter. Total pounds of product shipped were 77.2 million, as compared to 74.3 million pounds in the prior year. Gross profit for the third quarter of 2002 was $14.5 million, compared with gross profit of $14.9 million in the third quarter of 2001, a decrease of three percent.
Including the loss from discontinued operations, net income in the third quarter of 2001 was $1.2 million, or $0.09 per diluted share. Results for 2002 include the effect of adopting the new goodwill accounting standard at the beginning of the year. On a comparable basis, adjusting for goodwill amortization, income from continuing operations in the third quarter of 2001 would increase $0.6 million pretax and would add $0.05
per diluted share.
Chairman, President, and Chief Executive Officer Dennis Horowitz said, "I am pleased to report that our financial performance for the quarter was consistent with the guidance we provided in July. We were able to achieve these results despite an economy that was more challenging than anticipated, as well as a leaner product mix and substantially lower pricing in commodity wholesale products. Even given the less than favorable environment, Wolverine evidenced a number of positive quarter over quarter trends, including increased volumes, reduced manufacturing costs, and increased cash flows, demonstrating the positive contributions from cost reductions, Project 21 investments, and our European expansion."
Commenting on the outlook for the company, Mr. Horowitz said, "In the third quarter, we believe demand stabilized, albeit at the current weak levels. Consequently we expect our fourth quarter will reflect its normal seasonal pattern, which is a sequential reduction from the third quarter. For the fourth quarter we expect volumes to be between 65 and 68 million pounds, EBITDA in the range of $9.0 to $10.0 million and net income at break-even, plus or minus $0.02 per diluted share. These expected results are an improvement over the fourth quarter of last year even after absorbing an additional $2.4 million in increased financing costs and reflect the positive impacts from Project 21, globalization, new product introductions, and customer wins."
Wolverine Tube is a supplier of copper and copper alloy tube, fabricated products, metal joining products, and copper and copper alloy rod, bar and other products.
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