Electrical wire manufacturer Coleman Cable Inc., Waukegan, Ill., reported that its second-quarter profit plunged 79 percent from the second quarter 2007. The company’s earnings were hurt by restructuring costs, increased prices of raw materials and other general expenses.
Coleman Cable’s net income for the period fell to $843,000 from $4.1 million in the prior-year period. Excluding one-time items, the company earned $2.6 million for the quarter, compared with $4.2 million a year earlier. The company’s sales grew 8 percent to $267.6 million from $247 million a year ago, due to increased copper prices and sales added from newly acquired companies. Shares of Coleman tumbled $1.57, or 12.6 percent, to $10.86 in afternoon trading following the announcement.
In the three-month period ended June 30, Coleman paid $2.8 million in restructuring fees on its related acquisitions, compared with $200,000 for the same period in 2007.
Looking ahead, Coleman Cable expects adjusted earnings of 12 cents to 26 cents per share, with revenue between $265 million and $275 million in the third quarter.Analysts polled by Thompson Financial anticipate earnings of 35 cents per share on revenue of $279.4 million.