Friedman Rally Tracks Sales Growth and Capacity Expansion
The metals processor gained 127.4% in six months as quarterly sales improved and management pointed to firmer prices and added capacity.
Key takeaways
- Friedman shares gained 127.4% over six months, according to the article.
- Fiscal first-quarter sales rose on record volumes, higher prices and Century Metals contributions.
- Management expects second-quarter volumes to remain comparable with the first quarter.
Friedman Industries shares gained 127.4% over six months, supported by improved sales and growth initiatives, according to a Zacks report. As of 15:45 UTC on Oct. 13, the shares traded at $42.17, down 0.59% since the previous close.
The company reported higher fiscal first-quarter sales in June, driven by record sales volumes, improved average selling prices and contributions from its Century Metals acquisition. Most of the year-over-year volume growth came from existing facilities, while both flat-roll and tubular operations reported improvements.
Friedman has added processing capacity at Granite City and is expanding building and processing capabilities at Sinton. The company also rebranded its Texas Tubular Products division this month. Management said Century Metals contributed to growth and profitability after expanding the company’s product range and presence in Southeastern U.S. and Latin American markets.
Management expects fiscal second-quarter sales volumes to remain comparable with the first quarter, with higher average selling prices supporting sequential margin improvement. The company faces risks from steel-price swings and reliance on a limited number of raw-material suppliers, which could affect margins and production.
This article was produced with the help of AI technology. Source: Yahoo Finance
