Friedman Industries Inc. Releases Q3 2023 10-Q Report

Friedman Industries Inc., a prominent player in the steel processing and distribution industry, has released its Form 10-Q report for the third quarter of 2023. The report provides a detailed overview of the company's financial performance and operational activities, highlighting key metrics and future outlooks.

Financial Highlights

• Net Sales: $268.046 million, reflecting a decrease from the previous period due to a decline in average selling prices, partially offset by an increase in tons sold.
• Gross Profit: $22.2 million, with gross profit as a percentage of sales increasing to approximately 8.3% from 7.5% in the previous period.
• Earnings From Operations: $11.412 million, indicating a slight decrease compared to the previous period.
• Net Earnings: $11.203 million, with a decrease primarily due to lower sales and gross profit.
• Basic Net Earnings Per Share: $1.52, showing a decrease from the previous period's $1.88.

Business Highlights

• Revenue Segments: The flat-roll segment generated approximately $245.7 million in sales for the six months ended September 30, 2023, compared to $272.6 million for the same period in 2022. The tubular segment reported sales of approximately $22.3 million, down from $38.9 million in the previous year.
• Sales Units: The flat-roll segment saw an increase in inventory tons sold from approximately 200,500 tons in the 2022 period to approximately 241,000 tons in the 2023 period. The tubular segment experienced a decrease in tons sold from approximately 21,000 tons in the 2022 period to approximately 16,000 tons in the 2023 period.
• New Production Launches: The Sinton, Texas facility commenced operations in October 2022, contributing to the increased sales volume in the flat-roll segment.
• Future Outlook: The company anticipates margin improvement during the third quarter and continuing into the fourth quarter due to recent price increases for hot-rolled coil (HRC) announced by domestic steel producers. Sales volume for the third quarter is expected to be slightly lower than the second quarter due to seasonal impacts.

SEC Filing: Friedman Industries Inc. Releases Q3 2023 [ NASDAQ:FRD ] - 10-Q - Nov. 14, 2023