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However, the company's commercial wire and cable division continued to struggle at the gross margin line due to underutilized plant capacity and the impact of higher energy costs on manufacturing expenses and commodities such as copper wire and petroleum-based materials. Operating profit of $5,532,000 reported in the third quarter 2001 was negatively effected by underutilized plant capacity resulting from a slowed economy and decreased 7. Inventory reduction efforts commenced in mid-2000 resulted in charges to cost of sales for underutilized plant capacity of approximately $700,000 in the first quarter of 2001. |
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