Electrical cable and related services distributor Houston Wire & Cable reported its 2016 second quarter financial results on Tuesday, led by continued sales and profit declines.
The company posted Q2 sales of $62.5 million, down 19.9 percent year-over-year. The company took a net loss of $2.56 million, compared to $0.62 million a year earlier.
"The weak levels of industrial demand and the depressed oil and gas market experienced in the first quarter continued into the second quarter," said HWC president and CEO Jim Pokluda. "While transactional activity increased in the early part of the quarter, indicative of a possible sales rebound, we closed the period with a return to more sluggish demand levels."
HWC estimates that MRO sales declined 14 percent year-over-year, or approximately 5 percent on a metals-adjusted basis.
"We are experiencing sales successes through our commercial product line expansions; however, these sales channels, while a helpful revenue addition, cannot compensate for the reduced level of industrial demand, including project, oil and gas and MRO activity," Pokluda added.