International Wire Group, Inc. Announces Preliminary Results for Second Quarter of 2016
By Business Wire News
By Business Wire News
International Wire Group, Inc. (“IWG”) today announced preliminary results for the recently completed second quarter covering the three months ended June 30, 2016.
Second Quarter Update
We are currently in the process of finalizing our operating results for the three months ended June 30, 2016. Based on preliminary unaudited information:
- Estimated net sales for the three months ended June 30, 2016 is expected to be in the range of $135 million to $139 million, representing a year-over-year decrease compared to $172.4 million net sales for the second quarter of 2015, and a decrease from $139.6 million net sales reported for the first quarter of 2016. The decrease in net sales is primarily attributable to the lower price of copper in the second quarter of 2016 as compared to the second quarter of 2015. The COMEX average declined from $2.77 in the second quarter of 2015 to $2.13 in the second quarter of 2016. In addition, total pounds of product shipped declined 12.4% from 67.8 million pounds in the second quarter of 2015 to 59 million in the second quarter of 2016.
- Estimated Adjusted EBITDA for the three months ended June 30, 2016 is expected to be in the range of $11 million to $13 million, representing a year-over-year decrease compared to $16.0 million of Adjusted EBITDA for the second quarter of 2015, and a decrease from $14.4 million of Adjusted EBITDA for the first quarter of 2016. The decrease reflects the impact of lower volumes, lower commodity prices, lower LIFO/copper profits and lower plant utilization and higher medical costs borne by us.
- Total pounds of product shipped in the three months ended June 30, 2016 was approximately 59 million pounds, compared to 67.8 million pounds of total product shipped in the second quarter of 2015, and a decrease from 64.0 million pounds of total product shipped for the first quarter of 2016. The decline in pounds of product shipped reflects continued softness in the oil and gas market, the automotive/specialty vehicles market, electronics and data communications market and industrial and energy market.
- The average price of copper based upon COMEX for the three months ended June 30, 2016 decreased to $2.13 per pound compared to $2.77 per pound for the second quarter of 2015, and increased marginally from $2.11 per pound average price based upon COMEX for the first quarter of 2016.
- Estimated capital expenditures for the three months ended June 30, 2016 is expected to be in the range of $2.6 million to $2.8 million, representing a year-over-year decrease compared to $4.1 million of capital expenditures for the second quarter of 2015, and a slight decrease from $2.8 million of capital expenditures reported for the first quarter of 2016.
Our preliminary operating results remain subject to the completion of normal quarter-end accounting procedures and adjustments and are subject to change.
We have prepared the preliminary financial data included above, and our independent registered public accounting firm has not performed any audit, review or set of procedures with respect to this information. A review could result in changes to these preliminary results. Additionally, new information may become available from our consolidated subsidiaries that could affect these preliminary results. No assurance can be made that our actual results for the three months ended June 30, 2016 will be consistent with the foregoing estimates.
Forward-Looking Information is Subject to Risk and Uncertainty
Certain statements in this release may constitute “forward-looking” statements. 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 “expect”, “may,” “will,” “estimate,” or the negative of any thereof or other variations thereof or comparable terminology, or by discussions of strategy, intentions or preliminary operating results such as those disclosed above in “Second Quarter Update”. These statements are not guarantees of future actions or 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. These statements are based on management’s beliefs and assumptions and on information currently available to management 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, except as required by law. 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, the sales by the IWG’s segments, changes in product development, maintenance or operating costs, selling, general and administrative expenses, capital expenditures, or our effective tax rate, general market conditions, national or global events affecting the capital markets and unforeseen developments in our business or industry.
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, engineered wire products and high performance conductors 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 aerospace, automotive/specialty vehicles, consumer and appliance, electronics and data communications, industrial and energy and medical products industries. The Company has 18 manufacturing facilities and one distribution facility located throughout the United States, France, Italy and Poland. International Wire Group, Inc. is a wholly owned subsidiary of International Wire Group Holdings, Inc. (OTC Pink: ITWG).
International Wire Group, Inc.
Donald F. DeKay, 315-245-3800
Senior Vice-President, Chief Financial Officer and Secretary