HWC enjoys 2.7% Bump in 3Q Sales

Houston Wire & Cable Co., Houston, reported sales in the third quarter of 2009 of $63.6 million, up 2.7% from the second quarter of 2009 but down 35.7% when compared to the third quarter of 2008. HWC said the sales decline from 2008 was due to the current economic conditions, which curtailed product demand and average copper prices, which were 20% lower. The decrease in copper prices is estimated to have accounted for almost one-half of the sales decline.

Sales in HWC's MRO business, and within the company's five growth initiatives -- emission controls, engineering and construction, industrials, LifeGuard and utility power generation --decreased from the prior year period. After adjusting for copper deflation, the company estimated its MRO business declined between 10% to 20%, while sales from its growth initiatives were essentially flat.

Said Chuck Sorrentino, president and CEO, "We continue to be faced with weakened industrial demand due to depressed economic conditions, but are pleased to have experienced a slight increase in sequential sales during the quarter. Operating expenses have now reached their lowest level since our IPO in 2006. In spite of the business conditions net income for the third quarter was up 21% sequentially. We continue to remain focused on market share gains and added approximately 50 new customers in the third quarter of 2009.”