- Tree Island Steel (TSL) has reported a strong improvement in financial performance for the third quarter of what has been a difficult year
- The company reported a 7.1 per cent increase in revenue compared to last year, from C$49.7 million to $53.2 million
- As a result, net income totalled $520,000 compared to a loss of $359,000 last year, driven in part by a 6.8 per cent decline in expenses
- The company said the improved performance was largely due to higher volumes shipped in its Agricultural, Industrial and Residential Construction segments
- Tree Island Steel (TSL) is currently up 2.38 per cent to $2.15 per share at 11:01am EDT
Tree Island Steel (TSL) has reported a strong improvement in financial performance for the third quarter of what has been a difficult year.
The Vancouver-based wire manufacturer posted a 7.1 per cent increase in revenue compared to the same period last year, from C$49.7 million to $53.2 million. This was largely attributable to higher sales volumes in the company’s Agricultural, Industrial and Residential Construction segments.
Also notable was a 6.8 per cent decline in expenses, which came to $3.5 million compared to $3.76 million last year, primarily as a result of cost reduction measures implemented earlier this year to manage the COVID-19 pandemic.
The strong performance culminated in a significant improvement in net income, which totalled $520,000 this year compared to a loss of $359,000 in 2019. In addition to the decline in expenses, net income was heavily influenced by an increase in gross profit margins from 9.3 to 12.6 per cent.
Remy Stachowiak, President and Chief Operating Officer of Tree Island Steel, noted that despite the strong performance, the primary focus remains on the health and safety of the company’s employees.
“While we are seeing strength of demand in our markets, we continue to remain cautious about the long-term effects the pandemic could have on demand, and we will continue to diligently monitor our cost structures and working capital levels to ensure a timely and efficient delivery of products to our customers,” he said.
While Tree Island Steel’s facilities have remained open since the onset of COVID-19, the company cautioned that future operational and financial impacts are currently unknown, and that the extent to which the pandemic will influence long-term results depends on future developments.
Tree Island Steel (TSL) is currently up 2.38 per cent to $2.15 per share at 11:01am EDT.
