Encore Wire Corp. (NASDAQ Global Select: WIRE), McKinney, TX, reported first-quarter sales of $280.5 million, down 7.5 percent from the same period a year ago. Profit fell 37.4 percent to $6.7 million.
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The average selling price of wire per copper pound sold dropped 9.7 percent in the first quarter of 2012 versus the first quarter of 2011, accounting for the decline in sales dollars. Unit volumes, measured in pounds of copper contained in the wire sold during the period were virtually unchanged versus the first quarter of 2011.
\”Building wire prices and margins were impacted negatively by the volatility of copper prices during the quarter,\” said Daniel L. Jones, president and CEO. \”Copper prices traded erratically during the quarter, which made it difficult for us to maintain any industry announced price increases and made discounts hold. Comex copper prices ranged from a low of $3.41 to a high of $3.97 and kept bouncing between those two points throughout the quarter, with large swings occurring within the span of several days or a week or two.\”
