On June 11, 2024, Friedman Industries Inc (FRD, Financial) released its 8-K filing announcing the results for the fourth quarter and fiscal year ended March 31, 2024. Friedman Industries Inc is engaged in the manufacturing and processing of steel products, with operating segments including Coil Products and Tubular Products. The company generates maximum revenue from the Coil Products segment, offering products and services such as Temper Pass, Cut-To-Length, Whole Coils, Toll Processing, Electric Resistance Welded Pipe (ERW), New Mill Secondary, and Pipe Finishing Services.
Performance Overview
Friedman Industries Inc (FRD, Financial) reported net earnings of approximately $5.0 million ($0.71 diluted earnings per share) on sales of approximately $132.2 million for the quarter ended March 31, 2024. This compares to net earnings of approximately $6.3 million ($0.86 diluted earnings per share) on net sales of approximately $124.2 million for the same quarter in 2023. Sales volume increased from approximately 146,000 tons in the 2023 quarter to approximately 159,000 tons in the 2024 quarter.
Fiscal Year Highlights
For the fiscal year ended March 31, 2024, Friedman Industries Inc (FRD, Financial) recorded net earnings of approximately $17.3 million ($2.39 diluted earnings per share) on sales of approximately $516.3 million. This is a decrease from the previous fiscal year, where the company recorded net earnings of approximately $21.3 million ($2.91 diluted earnings per share) on sales of approximately $547.5 million.
| SUMMARY OF OPERATIONS | Three Months Ended March 31 | Year Ended March 31 | ||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| Net Sales | $132,232 | $124,186 | $516,251 | $547,542 |
| Cost of materials sold | ($104,724) | ($97,075) | ($417,143) | ($456,419) |
| Processing and warehousing expense | ($7,285) | ($5,557) | ($26,690) | ($21,146) |
| Delivery expense | ($6,356) | ($7,187) | ($23,791) | ($24,483) |
| Selling, general and administrative expenses | ($6,156) | ($6,525) | ($21,039) | ($21,894) |
| Depreciation and amortization | ($778) | ($588) | ($3,070) | ($2,526) |
| Earnings from operations | $6,933 | $7,254 | $24,518 | $21,074 |
| Gain on economic hedges of risk | $1,142 | $1,980 | $1,848 | $9,306 |
| Interest expense | ($937) | ($720) | ($3,072) | ($2,218) |
| Other income | $3 | $3 | $20 | $27 |
| Earnings before income taxes | $7,141 | $8,517 | $23,314 | $28,189 |
| Income tax expense | ($2,183) | ($2,206) | ($5,969) | ($6,845) |
| Net earnings | $4,958 | $6,311 | $17,345 | $21,344 |
| Net earnings per share: | ||||
| Basic | $0.71 | $0.86 | $2.39 | $2.91 |
| Diluted | $0.71 | $0.86 | $2.39 | $2.91 |
Explore the complete 8-K earnings release (here) from Friedman Industries Inc for further details.
