Great results for Bull Moose Tube

Riding a see-saw trajectory of sales and shipments, in 2008 Bull Moose closed the books on its second best performance ever. Shipping at a rate equal to 92% of their record year 2007, Caparo Bull Moose Tube required nearly 18,600 transport trucks and 300 railcars to deliver the finished goods to customers. Operating profit was also the second best in history and within 5% of the record set in 2004.

The year began with forecasts of unremarkable price and volume, but then it was “like someone opened the window and let in fresh air,” said Jack Meyer, President and CEO of Bull Moose Tube. Market activity in the United States increased progressively as summer approached.

While general economic forces early in 2008 were good, the prime drivers in the accelerating sales and price climate were low inventories and the lull in imported finished tube. As customers, (primarily distributors), began fulfilling inventory needs, demand began to exceed supply and prices rose.

However, for Bull Moose Tube, the year was a story of two cycles rolled into one - feverish production rates and price increases in the first half, and a sudden market contraction in the second. Raw material pricing tracked an extreme arc, and material pricing essentially doubled in 8 months and then dropped by half in 4 months!

The wild 2008 shipping cycle saw April 2008 establishing a new monthly shipment record smashing the old record by nearly 4,500 tonnes.

However, the economic slowdown truly began mid-year with activity very quickly reaching a nadir during the fourth quarter. “I must say we have never experienced such highs and lows in a single year,” said Jack Meyer. “We have learned a very important lesson - to be ready for any kind of change.” Unfortunately, the decreased shipping volumes ultimately required difficult decisions and today the organization is operating with 27% fewer people than at the peak in midsummer.

With the stringent realities of the current marketplace, in 2009 Bull Moose Tube is not resting on its laurels. Inventory is being aggressively managed and is being kept to a minimum; costs are challenged to a ‘as-needed only’ basis and as Jack Meyer says we “…fight for every order and stay on top of all customers.” 2008 was “…a tremendous year for Bull Moose Tube and the position created in the market just makes us that much stronger as we move into our most challenging year in a long time.”

For more information on the product range of the Bull Moose Tube Company visit www.bullmoosetube.com.