Webco posts net loss

Journal Record, The (Oklahoma City), Sep 22, 2000

TULSA (JR) -- Webco Industries on Thursday reported a net loss of $1 million, or 14 cents per share, for the fiscal year ended July 31.

The Tulsa-based manufacturer of steel products, had net income of $1.88 million, or 26 cents per share, for the previous fiscal year.

Sales for the year totaled $140.9 million, up from $134.7 million.

Webco had a net loss of $1.3 million, or 19 cents per share, for the fourth fiscal quarter, compared with net income of $146,000, or 2 cents per share, for the fourth fiscal quarter of the previous fiscal year.

Sales for the fourth fiscal quarter totaled $36.4 million, up from $34.1 million.

The net loss for the fourth fiscal quarter included a $1.4 million charge from the write-off of certain QuikWater long-term assets and unrelated tubing equipment.

The operating loss for the quarter was $905,000, compared with operating income of $973,000 in the fourth quarter of the previous fiscal year. Without the charge, operating income would have been $495,000 in the fourth quarter.

F. William Weber, Webco's chairman and CEO, said Webco has faced depressed pricing for many of its carbon products for the last 21 months and increasing carbon raw material costs for the last nine months.

"The combination of the two has significantly squeezed our profit margins," he said. "Volumes continue to improve, but pricing pressures are still high among most product groups."