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International Wire Announces Strong First Quarter 2010 Results

^{Published on 2010-05-12 13:35:25 - Market Wire}
 

CAMDEN, N.Y.--([ BUSINESS WIRE ])--International Wire Group, Inc. (Pink Sheets: ITWG) today announced its results for the first quarter ended March 31, 2010. First quarter 2010 results were strong and significantly greater than first quarter 2009 levels. As a result, operating income and net income for the three months ended March 31, 2010 were well ahead of first quarter 2009 levels.

aIn the first quarter, our sales and operating results were favorably impacted by increased customer demand across all major products and markets that began in the fourth quarter of 2009 and continued into early 2010. Our operating income for the first quarter of 2010 also improved through various cost reduction initiatives started in 2009 and better plant utilization in all three business segments,a said Rodney D. Kent, Chief Executive Officer of International Wire Group, Inc.

First Quarter Results

Net sales for the quarter ended March 31, 2010 were $167.7 million, an increase of $66.4 million, or 65.5%, compared to $101.3 million for the same period in 2009. This increase was primarily due to a higher selling price of copper, increased sales volume, higher customer pricing/mix (including silver, nickel and tin prices), a favorable currency exchange rate and a lower proportion of tolled copper (customer-owned copper, the value of which is excluded from net sales and cost of sales). Excluding the effects of higher copper prices and a lower proportion of tolled copper, net sales increased $14.4 million, or 14.2%, versus the prior year period level. This increase resulted from $9.9 million of increased volume, $3.8 million of higher customer pricing/mix and $0.7 million of favorable currency effect in the Europe segment. Total pounds of product sold in the first quarter of 2010 increased by 10.1% compared to the first quarter of 2009.

Operating income for the three months ended March 31, 2010 was $11.2 million compared to $3.7 million for the three months ended March 31, 2009, an increase of $7.5 million, or 202.7%, primarily due to higher sales levels and better plant utilization in all three business segments.

Net income of $5.8 million, or $0.58 per basic and diluted share, for the three months ended March 31, 2010 increased by $4.8 million, or $0.48 per basic and diluted share, from the prior year period level of $1.0 million, or $0.10 per basic and diluted share. The increase was due primarily to higher operating income, which was partially offset by a higher effective tax rate.

Net debt (total debt less cash) was $79.4 million as of March 31, 2010, representing a $10.1 million increase from December 31, 2009, primarily from increased working capital requirements related to the increased sales levels in the first quarter of 2010.

Additional financial information is available through the Companya™s investor website ([ http://itwg.client.shareholder.com ]) in the section titled aAdditional Financial Information.a

About International Wire Group, Inc.

International Wire Group, Inc. is a manufacturer and marketer of wire products, including bare, silver-plated, nickel-plated and tin-plated copper wire, for other wire suppliers, distributors and original equipment manufacturers. Its products include a broad spectrum of copper wire configurations and gauges with a variety of electrical and conductive characteristics and are utilized by a wide variety of customers primarily in the industrial and energy, electronics and data communications, aerospace and defense, medical electronics and devices, automotive and consumer and appliance industries. The Company manufactures its products at 16 facilities located in the United States, France and Italy.

Forward-Looking Information is Subject to Risk and Uncertainty

Certain statements in this release may constitute aforward-lookinga statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words abelieves,a aexpects,a amay,a awill,a ashould,a aseeks,a apro forma,a aanticipates,a aintends,a aplans,a aestimates,a or the negative of any thereof or other variations thereof or comparable terminology, or by discussions of strategy or intentions. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak only as of the date they were made and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Many important factors could cause our results to differ materially from those expressed in forward-looking statements. These factors include, but are not limited to, fluctuations in our operating results and customer orders, unexpected decreases in demand or increases in inventory levels, changes in the price of copper, tin, nickel and silver, the failure of our acquisitions and expansion plans to perform as expected, the competitive environment, our reliance on our significant customers, lack of long-term contracts, substantial dependence on business outside of the U.S. and risks associated with our international operations, limitations due to our indebtedness, loss of key employees or the deterioration in our relationship with employees, litigation, claims, liability from environmental laws and regulations and other factors.

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