US extruder Bonnell Aluminum posted a 5.8% increase in its third quarter net sales year on year on higher sales volumes, particularly in the automotive and nonresidential building and construction markets, parent company Tredegar said Monday.
Sales for the company were partially offset by a decrease in average selling prices.
Net sales rose to $94.812 million, from $89.605 million in Q3 2014. Sales volume increased 13.3% to 44.811 million lb from 39.536 million lb in Q3 2014.
"Bonnell sales volume and profits increased for the quarter over last year, but we're now running at near capacity. We're evaluating several options that we believe can help us participate in continued expected market growth," Tredegar President and CEO John Gottwald said in a statement.
The company said the increased demand from the nonresidential building and construction sector has pushed Bonnell's average capacity utilization to over 90%.
Bonnell's operating profit from ongoing operations in Q3 increased 26.4% to $7.272 million from $5.752 million in Q3 2014. The company attributed the gain to an increase in sales volumes and improved management of freight logistics. Profits were affected by production inefficiencies of around $1 million, attributed to mechanical issues and intermittent run times of one of the company's extrusion presses, it said.
For the first nine months of 2015, net sales were up 13.1% from 2014, increasing to $286.660 million from $253.436 million, on higher sales volumes. Sales volumes in 2015 were up 11.2% to 127.184 million lb from 114.351 million lb in the year before.
Capital expenditures for aluminum extrusions rose to $7.1 million through September, compared with $5.2 million a year ago, due to upgrading and expanding anodizing capacity at its Carthage, Tennessee, extrusion plant. Capital expenditures are projected to be roughly $9 million in 2015, which includes about $5 million for routine costs to support operations.
