Houston Wire & Cable profit falls on higher costs
Houston Wire & Cable Co. said Monday its fiscal first-quarter profit fell on higher costs, but it still beat Wall Street expectations. Profit fell 8.6 percent to $6.7 million, or 37 cents per share, from $7.3 million, or 35 cents per share, in the 2007 first quarter.
Even through profit fell, earnings per share rose because of the company’s share repurchase program, which began last August. Sales rose 9.3 percent to $89.4 million from $81.8 million.
Analysts polled by Thomson Financial expected profit of 34 cents per share on sales of $87.2 million. The company said sales were driven by growth in existing sectors, with emissions controls, engineering and construction, privately branded products and utility power generation all rising 20 to 25 percent.
Repair and replacement sales fell on economic uncertainty, the company said. Profit was hurt by higher expenses, with the cost of sales rising to $66.7 million from $59.2 million. Operating expenses rose to $11.2 million from $10.6 million.
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