International Wire Announces Fourth Quarter and Record Full Year 2012 Results

CAMDEN, N.Y.–(BUSINESS WIRE)– International Wire Group Holdings, Inc. (“the Company”) (Pink Sheets: ITWG) today announced its results for the fourth quarter and full year ended December 31, 2012. Fourth quarter operating results were strong despite lower sales. Full year 2012 operating income was at a record level.

“Our strong full year operating results were driven by increased customer demand in our bare wire business, primarily from the automotive/specialty vehicles market. Demand was flat to down in our other major markets. Greater plant utilization and on-going cost reduction initiatives in our high performance conductors and European businesses as well as the favorable LIFO effects resulting from lower inventory levels also contributed to our results. We are also pleased with our debt refinancing in October of 2012 and the success of our stock tender offer,” said Rodney D. Kent, Chief Executive Officer of International Wire Group Holdings, Inc.

Fourth Quarter Results

Net sales for the quarter ended December 31, 2012 were $161.7 million, a decrease of $29.3 million, or 15.3%, compared to $191.0 million for the same period in 2011. This decrease was primarily due to a higher proportion of tolled copper (customer-owned copper, the value of which is not included in net sales and cost of sales) shipped in the 2012 period compared to the 2011 period, lower sales volume, and unfavorable currency exchange rates in Europe. These factors were partially offset by a slightly higher selling price of copper and higher customer pricing/mix. Excluding the effects of higher copper prices and a higher proportion of tolled copper, net sales decreased $9.7 million, or 5.7%, versus the 2011 period. Contributing to this decrease were lower sales volume of $11.4 million and $0.6 million from unfavorable currency rates in Europe, partially offset by $2.3 million from higher customer pricing/mix. Total pounds of product sold in the fourth quarter of 2012 decreased by 3.6% compared to the fourth quarter of 2011.

Operating income for the quarter ended December 31, 2012 was $12.6 million compared to $11.5 million for the quarter ended December 31, 2011, an increase of $1.1 million, or 9.6%, due in part to the LIFO liquidation of $2.9 million in the 2012 period resulting from lower inventory levels at year-end which was partially offset by lower sales volume.

Net …read more
Source: FULL ARTICLE at DailyFinance