CAMDEN, N.Y. /BUSINESS WIRE/ – International Wire Group Holdings, Inc. announced its results for the first quarter ended March 31, 2013. First quarter 2013 operating income was lower than in the first quarter of 2012.
“Sales demand weakened in the fourth quarter of 2012 and remained soft in the first quarter of 2013 in most major markets. Sales demand continued strong in the automotive/specialty vehicles and medical device markets. Our operating results were impacted by the reduced sales volumes, lower plant utilization and higher medical costs,” said Rodney D. Kent, Chief Executive Officer of International Wire Group Holdings, Inc.
First Quarter Results
Net sales for the quarter ended March 31, 2013 were $201.1 million, a decrease of $7.1 million, or 3.4%, compared to $208.2 million for the same period in 2012. Excluding the effects of lower copper prices and a lower proportion of tolled copper processed (customer-owned copper, the value of which is not included in net sales and cost of sales), net sales decreased $10.3 million, or 4.9%, versus the 2012 period. This decrease was due to reduced sales volume of $12.9 million from decreased demand in all major markets except automotive/specialty vehicles, medical electronics and medical devices, partially offset by $2.5 million of higher customer pricing/mix and $0.1 million from favorable currency exchange rates in Europe. Total pounds of product sold in the first quarter of 2013 decreased by 4.8% compared to the first quarter of 2012.
Operating income for the three months ended March 31, 2013 was $13.1 million compared to $16.3 million for the three months ended March 31, 2012, a decrease of $3.2 million, or 19.6%, primarily due to reduced sales volume (including silver-plated products), lower plant utilization and higher medical costs. Operating income decreased in all three of our business segments.
Net income of $4.7 million for the three months ended March 31, 2013 decreased by $1.8 million from the prior year period level of $6.5 million. The decrease in net income was due primarily to lower operating income partially offset by reduced interest expense as the result of lower interest rates from our October 2012 refinancing.
Net debt (total debt less cash) was $277.9 million as of March 31, 2013, representing a $24.3 million increase from December 31, 2012 primarily due to higher accounts receivable and the payment of certain accrued expenses, partially offset by higher accounts payable.
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