Webco Industries, Inc. Reports Fiscal 2009 Fourth Quarter and Year-End Results

Webco Industries Inc. said the global economic crisis has affected business levels for most of its customers, resulting in reduced volumes and a fourth quarter net loss of $16,000, or a loss of 2 cents per share.
That is compared to net income of $5.3 million, or $7.02 per share, for the same quarter in fiscal 2008.
Net sales for the fourth quarter of fiscal 2009 were $56 million, a 40.5 percent decrease from the $94.2 million of sales in last year’s fourth quarter. Current quarter results included a $1.3 million non-cash pre-tax gain in the value of interest rate swap contracts versus a non-cash pre-tax gain of $300,000 in the same quarter in fiscal 2008.
The fourth quarter of fiscal 2008 included a $500,000 million pre-tax charge for inventory reserves. Results for the current quarter continue to be negatively impacted by high cost inventories and sales prices which are based on the lower cost steel. In addition,
For fiscal year 2009, the company generated a net loss of $2.9 million, or a loss of $3.83 per share, compared to net income of $16.9 million, or $22.28 per share, for the same period in fiscal 2008.
Net sales for fiscal year 2009 amounted to $323.7 million, a 13.8 percent decrease from the $375.7 million in sales for fiscal year 2008. The year’s results were impacted by $2.4 million of inventory reserve charges and $5 million of non-cash pre-tax charges related to interest rate swaps. The prior fiscal year reflected net inventory reserve charges of $500,000 and a non-cash gain of $600,000 related to interest rate swaps.
Results for the current fiscal year have been negatively impacted by the pricing and volume conditions that have affected the current and two preceding quarters.



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