HUNTSVILLE, Ala., Nov. 20 /PRNewswire-FirstCall/ -- Wolverine Tube, Inc. (Other OTC: WLVT) reported results for the third quarter 2009 in its Form 10-Q filed on November 17, 2009. The net loss for the third quarter of 2009 was $7.2 million compared to a net loss of $23.9 million in the same period for 2008. The 2008 results include a $44.0 million Goodwill Impairment charge and a gain on divestitures of $21.7 million.
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The net loss for the first nine months of 2009 was $25.5 million compared to $31.6 million for the same period in 2008.
Net sales for the third quarter of 2009 were $117.9 million, as compared to $216.0 million for the third quarter of 2008. A total of 30.2 million pounds of copper tubing was shipped in the third quarter of 2009 compared to 40.5 million pounds in the 2008 third quarter. The comparative decrease in shipments was due primarily to decreased demand in the HVAC and appliance markets due to the overall economic decline. In addition to the decline in pounds shipped, the 45% decrease in net sales was also due to the 23% decrease in the year over year price of copper, our primary raw material.
Net sales for the first nine months of 2009 were $341.1 million compared to $629.8 million for the same period in 2008. A total of 93.7 million pounds of copper tubing was shipped in the first nine months of 2009 compared to 120.8 million in the first nine months of 2008. The decrease in net sales was due to lower demand in the HVAC and appliance markets and a 41% decrease in the year over year price of copper.
The 2008 net sales and pounds shipped exclude our China joint venture which was a consolidated subsidiary through September 2008.
Mr. Harold Karp, President and Chief Operating Officer, commented that "Global economic and market conditions remain weak; however, we are seeing improvement in the Asian commercial and industrial HVAC market and our customers are forecasting 2010 increases in the domestic residential HVAC market.
We continue to focus on manufacturing cost reductions and new product/market development. Our September YTD manufacturing cost is 3.1% lower versus 2008, and our strong commitment to R&D in 2009 has positioned Wolverine for capturing additional market share as the economy recovers. We have developed 12 new products so far this year; each one aimed at improving our customer's market position through more efficient, higher performance and cost effective products. Additionally, we have developed a new line of high performance technical tubes for the rapidly growing geothermal and other renewable energy markets.
Our relentless focus on future growth opportunities is generating excitement in the electronics cooling industry. Our proprietary MicroCool(TM) line of electronics cooling solutions has already generated commercial success in becoming the product of choice of a major microprocessor industry manufacturer.
Since completing the debt exchange offer in April 2009, our focus on liquidity has continued at a high level. Our focus on working capital management has resulted in an improvement in inventory turns in 2009 by 17% over the same period last year.
Our liquidity is impacted by changes in copper and silver prices. A $0.10 per pound change in the price of copper results in approximately a $1 million change in working capital. A $1.00/per troy oz. change in the price of silver impacts working capital by approximately $0.7 million. Copper and silver prices have increased significantly during 2009. Since the end of the third quarter, copper and silver prices have added approximately $4 million to working capital requirements, if current prices are sustained. The Company is working diligently to continue to improve the management of its working capital."
ABOUT WOLVERINE TUBE, INC.
Wolverine Tube, Inc. provides its customers with copper and copper alloy tube, fabricated products and metal joining products. Internet addresses: http://www.wlv.com/ and http://www.silvaloy.com/.
FORWARD-LOOKING STATEMENTS
All statements in this press release, other than statements of historical fact, are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectation and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in this press release. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligations to release publicly any update or revision to any forward-looking statements contained herein if there are any changes in conditions or circumstances on which any such forward-looking statement is based.
Contact: Dave Owen (256) 580-3976
Wolverine Tube, Inc.
CONTACT: Dave Owen, +1-256-580-3976
Web Site: http://www.wlv.com/
