Net purchases remained relatively unchanged year-over-year up only $2k from the prior year despite an increase in sales volume and a shift in product mix. February 2017 ended at $109k or 19.8% of sales compared with $107k or 23.7% of sales in February 2016. The current month benefited from lower 6042 aluminum pricing due to our existing contract with Central Steel and Wire and a higher concentration of lower cost Bimba products. Scrap metal prices continued to climb in February 2017 with aluminum gaining 47% or $0.11 per pound from the same period a year ago. Improved aluminum pricing compensated for significantly lower scrap volume in the current month. …show more content…
While manufacturing labor headcount remained relatively consistent with the prior year, increased production levels led to higher overtime costs offset in part by a favorable change in product mix. However, as a percentage of sales, direct labor in February 2017 was 2.1% lower than the prior year. Similarly, although outside processing cost was up $5k in February 2017 as a percentage of sales it dropped from 4.9% in the prior year to 4.8% in February 2017. In addition to employee headcount, February 2017 reported $5k in wages for temporary or contract labor. There was no temporary labor expense in February