IIIN - Insteel plunges after warning on labor market constraints

Insteel Industries ( NYSE: IIIN ) -16.1% in Thursday's trading, its biggest intraday decline since March 2020, after reporting FQ3 results that included a 41% Y/Y increase in revenues to $227M, but warning that labor market constraints have prevented some facilities from operating at full capacity .

The company said deliveries of offshore steel wire rod offset raw material shortages that strained production and shipping during the year's H1, but it is "increasingly contending with unusually tight labor markets" that have curbed full-capacity production schedules at some facilities.

Insteel ( IIIN ) said FQ3 shipments fell 8.2%, driven by lower activity in its standard welded wire reinforcement product line together with reduced operating hours at certain facilities related to staffing challenges.

Q3 earnings conference call transcript

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