Coleman Cable CEO: Improvement possible during 2008
Coleman Cable, Inc. (Nasdaq:CCIX) CEO Gary Yetman said volatility in the copper market, continued weakness in residential construction and general market uncertainty have hurt the maker of electrical wire and cable’s bottom line. Yetman said the Waukegan, Ill.-based firm is also experiencing inflationary pressures due to higher fuel and PVC costs. The expense pressures have been “somewhat offset” by price increases and cost-saving initiatives, he said. Yetman made the comments during a midday conference call.
For the first quarter of 2008, Coleman said in a statement that it expects revenue between $245 million and $255 million. First-quarter earnings are projected to range from $0.15 to $0.24 per share.
If the market remains calm, the CEO said he anticipates an uptick during the second half of 2008.
“Based on stable market conditions and the benefit from the synergies of our acquisitions and our cost-saving initiatives, we would expect consistent performance in the second quarter of 2008 and would then anticipate an uptick in the second half of the year from the projected benefits of the acquisition of [electrical products maker Woods Industries Inc.],” Yetman said.
After Thursday’s close, Coleman Cable reported fourth-quarter revenue of $254.3 million, up 146% from $103.2 million a year earlier. Wall Street analysts anticipated $227.4 million in revenue.
For the three months ended Dec. 31, Coleman’s net income was $4 million, or $0.24 per share, compared with $1.7 million, or $0.12 per share, during the same period of 2006. Analysts predicted earnings of $0.16 per share.
Selling, general and administrative expenses for the quarter totaled $13 million, compared with $8.7 million during the prior-year period.
For fiscal 2007, Coleman’s net sales rose 104% to $864.1 million, from $423.4 million a year earlier. Analysts expected $882.2 million.
“I’m pleased to announce, once again, a very solid year for Coleman Cable,” Yetman said. “It was the third consecutive quarter of record revenue.”
Fiscal 2007 net income decreased 49% to $14.9 million, or $0.88 per share, from $29.4 million, or $2.15 per share, during 2006. Wall Street analysts projected earnings of $0.93 per share.
In midday trading, CCIX shares are up 4.13%, or $0.46, at $11.59.
