Atkore quarterly sales down 5.8 percent

Business Wire

HARVEY - Atkore International Group said net sales for the first quarter of 2017 decreased 5.8 percent as demand for its mechanical pipe products offset price increases.

Sales for the quarter were $337.6 million, compared to $358.4 million for the prior-year period. Adjusted net sales, which exclude the Fence and Sprinkler product lines Atkore sold off in 2016, declined 3.7 percent, as compared to the first quarter of 2016 driven mainly from lower demand for mechanical pipe product offset by average selling price increases.

"Our first quarter adjusted EBITDA and adjusted earnings per share were in line with our expectations," said John Williamson, Atkore's President and CEO. "The Atkore team continues to outperform the market inputs by focusing on productivity through the Atkore Business System and driving margin expansion by selling higher value innovative products and managing input cost changes. Feedback from our channel partners, customers and market indicators point to a strong second half in 2017 and give us confidence to reconfirm our prior guidance."

Gross profit increased by 27.1 percent to $92 million for the quarter, compared to $72.4 million for the prior-year period. Gross margin expanded to 27.3 percent in the first quarter from 20.2 percent in the prior-year period. Gross margin increased primarily due to the Company's ability to pass through its material cost increases and improving productivity in manufacturing freight and warehousing costs.