Ivaco Sales Rise on Strong Demand
Ivaco Sales Rise on Strong Demand
Jason Sandefur
Ivaco Inc. reported net sales for the second quarter of 2004 climbed 40% to CAD$262.2 million (U.S.$196.9 million), while net earnings soared to CAD$17.8 million compared with a CAD$12.9 million loss during the second quarter of 2003. Strong demand for wire rod and fasteners increased total tonnage shipped during the quarter. Ivaco said price increases coupled with scrap surcharges are responsible for the significant increase in sales dollars.
The results followed news that bankrupt Ivaco will be sold to Chicago-based Heico Cos. for CAD$375 million, subject to approval by the Canadian bankruptcy court.
For the first six months of 2004, net sales improved 19.2% to CAD$483 million, and net earnings grew to CAD$11.4 million compared with a loss of CAD$14.3 million during the first half of 2003. “Increased demand for all of the company’s products, and the steel industry in general, has resulted in significant price increases, which coupled with productivity improvements have had significant positive impact on the company’s profitability,” stated CEO Gordon Silverman. “In the short term, the industry is enjoying a strong year which will benefit the company during 2004.”” Web: ivaco.com �2004 Fastenernews.com
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