Tree Island Wire Income Fund (TSX:TIL.UN) has reported a drop in net income to $534,000 for 2008's first quarter compared with $3.4 million in its previous first quarter.
Revenue for the New Westminster-based company increased to $76.4 million for the quarter compared with $64.9 million for 2007's corresponding quarter.
Tree Island, a wire manufacturer, attributes its drop in earnings to increases in the cost of raw materials, the strong Canadian dollar and a decline in the U.S. housing market.
The company plans to implement seven product price increases in Canada and eight in the U.S. in 2008's first two quarters. The company reported that more of its customers are accepting price increases as they realize that higher steel costs will continue.
Tree Island's share price range during the past week: between $4.50 and $4.65; 52-week high: $8.89; 52-week low: $3.65.