Keystone posts healthy second-quarter profit
Aug 09, 2008 (Journal Star - McClatchy-Tribune News Service via COMTEX) -- Aug. 9--BARTONVILLE -- Keystone Consolidated Industries Inc. posted another solid profit in the second quarter, the company announced Friday.
Keystone Consolidated, the Dallas-based parent of Keystone Steel & Wire Co. in Bartonville, reported a profit of $21.9 million, or $1.81 a share, during the quarter that ended June 30.
That was about 27 percent higher than the profit of $17.2 million, or $1.72 a share, posted in the second quarter of 2007, the company said in a news release.
Second quarter sales were $178 million, up from $122.7 million in the second quarter of 2007.
For the first six months of 2008 the company had a profit of $35.5 million, or $3.25 a share, compared with a profit of $31/7 million, or $3.17 a share, through the first half of 2007.
The company attributed the increase to gains from higher selling prices, increased costs for scrap metal, lower pension credits and a $5.4 million gain on a legal settlement reached in 2007.
Without the pension credits and legal settlement, the company profit would have been $15.9 million, compared with $1.2 million in the second quarter of 2007, the company said.
Sales were higher in all product categories in the quarter, the company said.
Other factors leading to the increase in profit included:
--Higher per-ton selling prices resulting from price increases Keystone implemented
--Higher shipments of wire rod due to lower quantities of import product available for sale
--Higher prices for import products as well as the weak U.S. dollar
--Cost savings of approximately $500,000 in 2008, resulting from a reduction-in-force in the salaried and management ranks at Keystone Steel and Wire, which is Keystone Consolidated's largest manufacturing facility.
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