Friedman Industries, Incorporated reported its financial results for the three and six months ended September 30, 2024, revealing significant declines in revenue and profitability compared to the same periods in the previous fiscal year.

For the three months ended September 30, 2024, net sales totaled $106.8 million, down from $130.7 million in the same quarter of 2023. The decline continued in the six-month period, with sales of $221.3 million compared to $268.0 million in the prior year. The decrease in sales was attributed to lower average selling prices and reduced sales volumes across both the Flat-Roll and Tubular segments. The Flat-Roll segment saw revenues drop from $119.2 million to $96.2 million year-over-year, while the Tubular segment's sales decreased from $10.2 million to $9.4 million in the same timeframe.

The cost of materials sold also decreased, contributing to an adjusted gross profit of approximately $18.0 million for the third quarter, down from $20.5 million in 2023. However, the overall profitability was adversely affected, with the company reporting an operating loss of $224,000 for the third quarter, compared to an operating profit of $1.1 million in the prior year. For the six months, the operating loss was $1.6 million, a stark contrast to the $11.4 million profit recorded in the same period of 2023.

Net earnings for the three months ended September 30, 2024, were a loss of $675,000, compared to a profit of $3.5 million in the previous year. For the six-month period, net earnings were $1.9 million, significantly lower than the $11.2 million reported in 2023. The earnings per share reflected this downturn, with a loss of $0.10 for the third quarter compared to a profit of $0.48 in the same quarter of the previous year.

On the balance sheet, total current assets decreased to $148.0 million from $170.1 million as of March 31, 2024. Total liabilities also fell, from $102.5 million to $80.4 million, while total stockholders' equity increased slightly to $128.8 million.

Friedman Industries continues to manage its debt effectively, with a current balance of approximately $35.9 million drawn under its $150 million asset-based lending facility, which matures in May 2026. The company reported a current ratio of 4.1 as of September 30, 2024, indicating a strong liquidity position.

Strategically, the company has made investments in upgrading its processing facilities, including a $1.9 million upgrade at its Decatur, Alabama facility, which was placed into service in August 2024. Despite the challenges faced in the current fiscal period, Friedman Industries remains focused on operational improvements and maintaining adequate cash flows to meet its obligations.