PGT sees first sales growth since '06; TECO gains customers; Gerdau profits.
In the second quarter of 2010, residential window and door manufacturer PGT Inc. posted its first year-over-year growth in sales since 2006. But lower margins on the new activity brought net income down.
Total net sales were $49.0 million for the quarter, a 4.6% gain over 2009's second quarter. The gain was driven by the company's expansion outside of Florida, as well as the success of its non-impact-resistant products.
But those installations lacking impact resistance yielded lower profit margins for PGT. Although the relative drop was slight — just a percentage point lower than in the second quarter of 2009 — the change appears to have had an impact.
PGT essentially broke even for the quarter, generating a $1,000 profit. Net income in last year's second quarter was $342,000.
Founded in 1980, Venice-based PGT Inc. has approximately 1,200 employees.
TECO Energy Inc.
Customer growth, favorable pricing, and warm weather helped TECO Energy Inc. grow profits in the recently concluded quarter. The company netted $75.7 million, a 24% year-over-year increase.
The company's Tampa Electric subsidiary reported a $56.8 million net income for the quarter. New energy prices that went into effect in May 2009 increased pretax revenues between $13 million and $17 million. Additionally, the company attributed a $3 million and $5 million increase in pretax revenue growth to warmer spring temperatures. The company's customer base also grew by 0.7%.
The TECO Coal subsidiary generated $20.7 million in net income, more than double 2009's $10.1 million total, largely due to higher coal prices.
TECO Energy's other subsidiaries — Peoples Gas System and TECO Guatemala — combined for an additional $15.7 million in profit, but operation of the parent company cost $17.7 million.
Through its subsidiaries, TECO Energy Inc. provides utility services to its customers. Its headquarters are in Tampa.
Gerdau Ameristeel Corp.
Good business fundamentals, combined with a slightly stronger economy, led Gerdau Ameristeel Corp. to big profits in 2010's second quarter.
"Our ability to manage costs and maximize efficiency throughout our operations, along with the gradual improvement in business fundamentals, was clearly reflected in our second quarter EBITDA results,” said Mario Longhi, the company's CEO.
Net sales for the three months ended June 30 were $1.3 billion, up 30% from 2009's $1 billion total. That gain's effect on the bottom line was a major turnaround relative to 2009. After losing $52.4 million a year ago, the company made $46.7 this quarter.
The steel producing company shipped 1.5 million tons of steel in the quarter, up 15% from last year's total.
In addition to its recent successes in profitability, the company maintains a strong liquidity position. With $540.3 million in cash and short-term investments, along with access to $498.4 million through its secured credit facilities, Gerdau Ameristeel had more than $1 billion in total liquidity at quarter's end.
Based in Tampa, Gerdau Ameristeel has the capacity to manufacture roughly 10 million tons of steel in a year.