Commenting on the outlook for fiscal 2010, Mr HO Woltz III president & CEO Insteel said that "In certain of our welded wire reinforcing markets, there are recent indications that we have gained share by out servicing our competitors, which should translate into increased volume in the coming year. At the same time, while the upturn in business we have experienced during the third and fourth quarters is encouraging, we do not believe that it constitutes a rebound in actual end use demand for our products. In fact, we expect that market conditions will remain difficult for the near-term as customers work down backlogs and new project activity stays at depressed levels amid the ongoing uncertainty regarding the timing and magnitude of a sustained economic recovery. We are also moving into what has historically been our seasonally weakest period of the year when construction activity and demand for our products are significantly impacted by weather conditions. The next two quarters could be particularly challenging given that demand is also being adversely affected by cyclical forces."
He added that "As we enter a new year, we will continue to focus on delivering value in each of our markets, striving to be the supplier of choice and building upon our leadership positions. We will also focus on maintaining our financial strength and flexibility so that we are well positioned to capitalize on any growth opportunities that may arise."
