Prices
Webco Passes on Higher Costs, Increasing Sales
Written by Laura Miller
October 5, 2022
Tube producer Webco Industries says it has successfully been able to pass on higher costs to its customers in the form of higher prices, allowing it to increase sales in its 2022 fiscal year fourth quarter ended July 31, 2022.
During the quarter, Webco experienced volatility in the price of its raw materials including carbon and stainless steel sheet coil. The company was also hit with increased costs for non-steel supplies, operations, freight services, and labor.
Webco’s fiscal Q4 sales rose 18.5% year-on-year (YoY) to $172.5 million, pushing full fiscal year sales up 51% YoY to $704 million. Q4 net income was down 38.5% YoY, however, to $8.23 million, while full-year net income jumped 145% YoY to $48.35 million.
Sand Springs, Okla.-based Webco operates five tube production facilities in Oklahoma and Pennsylvania and eight value-added facilities in Oklahoma, Illinois, Michigan, Pennsylvania, and Texas. It produces carbon, alloy, stainless, and titanium welded tubing, welded cold-drawn tubing, and seamless cold-drawn tubing.
By Laura Miller, Laura@SteelMarketUpdate.com
Laura Miller
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