Profile: Insteel Industries Inc (IIIN.O)

Insteel Industries, Inc. (Insteel), incorporated in 1958, is a manufacturer of steel wire reinforcing products for concrete construction applications. The Company manufactures and markets prestressed concrete strand (PC) strand and welded wire reinforcement (WWR) products, including concrete pipe reinforcement (CPR), engineered structural mesh (ESM) and standard welded wire reinforcement (SWWR). Insteel’s products are primarily sold to manufacturers of concrete products that are used in nonresidential construction. Insteel is the parent holding company for two wholly owned subsidiaries, Insteel Wire Products Company (IWP) and Intercontinental Metals Corporation. The Company’s concrete reinforcing products consist of PC strand and WWR. Insteel sells its products to a range of customers, which includes manufacturers of concrete products, and to a lesser extent, distributors and rebar fabricators.

PC strand

PC strand is a seven-wire strand that is used to impart compression forces into precast concrete elements and structures, which may be either pretensioned or posttensioned, providing reinforcement for bridges, parking decks, buildings and other concrete structures. Pretensioned or prestressed concrete elements or structures are primarily used in nonresidential construction while posttensioned concrete elements or structures are used in both nonresidential and residential construction. During the fiscal year ended October 3, 2009 (fiscal 2009), PC strand sales represented 47%, of its consolidated net sales.

WWR

WWR is produced as either a standard or a specially engineered reinforcing product for use in nonresidential and residential construction. It produces a range of WWR products, including CPR, SWWR and ESM. CPR is an engineered made-to-order product that is used as the primary reinforcement in concrete pipe, box culverts and precast manholes for drainage and sewage systems, water treatment facilities and other related applications. SWWR is a secondary reinforcing product that is produced in standard styles for crack control applications in residential and light nonresidential construction, including driveways, sidewalks and various slab-on-grade applications. ESM is an engineered made-to-order product that is used as the primary reinforcement for concrete elements or structures, frequently serving as a replacement for hot-rolled rebar. During fiscal 2009, WWR sales represented 53% of its consolidated net sales.

The Company competes with Nucor Corporation, Gerdau Ameristeel Corporation, Ivy Steel & Wire, Nucor Corporation, Gerdau Ameristeel Corporation, Engineered Wire Products, Inc., Davis Wire Corporation, Oklahoma Steel & Wire Co., Inc., Concrete Reinforcements Inc., American Spring Wire Corporation, Sumiden Wire Products Corporation, Strand-Tech Martin, Inc. and MMIStrandCo, LP.