Wolverine Tube Reports Second Quarter 2006 Results

Net Income Driven by Unusually Strong Wholesale Pricing


HUNTSVILLE, Ala., July 27, 2006 (PRIMEZONE) -- Wolverine Tube, Inc. (NYSE:WLV), today reported its results for the second quarter of 2006. Net income for the quarter ended July 2, 2006 was $6.4 million or $0.42 per diluted share as compared to a net loss of $5.7 million, or $0.38 per share in the second quarter of 2005. Included in the net income for the second quarter of 2006 is $2.1 million of charges related to consultants and advisory fees incurred in connection with our strategic planning and evaluation of balance sheet restructuring options, and $1.0 million representing a write down to net realizable value for equipment taken out of service, and held for sale. Excluding these charges net income would have been $8.5 million or $0.56 per diluted share.

Net sales for the second quarter of 2006 were $418.0 million as compared to $196.3 million in the second quarter of 2005. The higher sales reflect the average COMEX copper price of $3.37 per pound compared to $1.53 per pound in the prior year, a 120.3 percent increase. Total pounds of product shipped were 101.9 million, an increase of 37.8 percent from last year's second quarter. Earnings before interest, taxes, depreciation and amortization were $20.1 million as compared to $696 thousand in the same period of the prior year.

Commenting on the results, Chip Manning, President and Chief Executive Officer said, "Our second quarter results reflect an unusually strong wholesale market in both price and demand. These strong market conditions experienced during the second quarter were a primary driver in our financial results. In the early portion of the third quarter we have experienced a softening in both demand and price in these markets. Also, the improved results are due to a more normal seasonality in our business." Manning continued, "As we compare to the prior year, the financial performance in the second quarter of 2005 was negatively impacted by the strike in Montreal."

SECOND QUARTER RESULTS BY SEGMENT

Commercial products gross profit was $7.8 million compared to the prior year's second quarter of $5.5 million. Shipments increased 31.0 percent to 68.5 million pounds. Net sales were $272.8 million as compared to $146.9 million in the prior year. These results reflect the higher copper prices, improved demand in all product groups, and lower fabrication revenues, due to a leaner mix in fabricated products.

Gross profit in wholesale products was $22.3 million in 2006 compared to a loss of $178 thousand in the second quarter of 2005. Shipments totaled 28.5 million pounds as compared to last year's 19.4 million pounds. Net sales increased to $123.5 million from the prior year's $38.4 million. Higher copper prices and a significant improvement in fabrication revenues drove the growth in net sales and gross profit.

Gross profit in rod, bar and other products was a loss of $940 thousand in the second quarter of 2006, compared to gross profit of $360 thousand in the same period of 2005. Pounds of rod and bar product shipped were 5.0 million in the second quarter of 2006, as compared to the strike-dampened 2.3 million pounds in 2005. Net sales increased to $21.7 million from $11.0 million in 2005, reflecting increased volume shipped and rising copper prices, partially offset by reduced fabrication revenues and the strengthening Canadian dollar.

LIQUIDITY

Commenting on liquidity, Jed Deason, Chief Financial Officer, stated, "As of July 24, 2006, the Company has utilized $72.7 million under its receivables sales facility and has no outstanding borrowings under its $35.0 million revolving credit facility, although this facility is used to support letters of credit and other holdbacks. Total available liquidity as of July 24, 2006, including $25.5 million in cash in North America and $19.8 million under the revolving credit facility, is $45.3 million. We continue to closely monitor our available liquidity." Finally, concluded Deason, "We continue to work with Rothshild, Inc. on short term liquidity, capital structure and longer term strategic issues."

SECOND QUARTER CONFERENCE CALL

The Company will hold a conference call this morning at 9:30 a.m. Central Time (10:30 a.m. Eastern Time) to discuss the contents of this release. Dial in to the conference call line at (866) 710-0179 Access Code: Wolverine, ten minutes prior to the scheduled start time. A link to the broadcast can be found on the Company's website at http://www.wlv.com, in the Investor Relations section under the "Conference Calls" link. If you are unable to participate at this time, a replay will be available through August 23, 2006 on this website or by calling (877) 919-4059 (passcode: 15909398). Should you have any problems accessing the call or the replay, please contact the Company at (256) 580-3958.

The tables following the text of this press release provide financial details that are included in this press release and that will be discussed on the conference call. This includes a reconciliation of net income (loss) to earnings before interest, taxes, depreciation and amortization. This press release, including these financial details, is now available on the Wolverine website at http://www.wlv.com in the Investor Relations section under the heading Press Releases.

ABOUT WOLVERINE TUBE, INC. -- Wolverine Tube, Inc. is a world-class quality partner, providing its customers with copper and copper alloy tube, fabricated products, metal joining products as well as copper and copper alloy rod, bar and other products. Internet addresses http://www.wlv.com and http://www.silvaloy.com.

FORWARD -LOOKING STATEMENTS

Forward-looking statements in this press release are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements use such words as "may", "should", "will", "expect", "believe", "plan", "anticipate" and other similar terminologies. This press release contains forward-looking statements regarding factors affecting the Company's expectations of future operating and financial results and liquidity. Such statements are based on current expectations, estimates and projections about the industry and markets in which the Company operates, as well as management's beliefs and assumptions about the Company's business and other information currently available. These forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The Company undertakes no obligation to publicly release any revision of any forward-looking statements contained herein to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. With respect to expectations of future operating and financial results and liquidity, factors that could affect actual results include, without limitation, the effect of currency fluctuation; energy and raw material costs and our ability to effectively hedge these costs; fluctuation in COMEX copper, silver and other metals pricing; continuation of historical trends in customer inventory levels and expected demand for our products; outsourcing levels of OEMs; the effect of the 13 SEER regulations on product demand and the seasonality of our business; the level of customer demand in the Mexican market; competitive products and pricing; environmental contingencies; regulatory matters; changes in technology and our ability to maintain technologically competitive products; the mix of geographic and product revenues; the success of our product and process development activities, productivity and efficiency initiatives, including and related to transportation and natural gas, electricity and other utilities; global expansion activities, market share penetration efforts; working capital management programs and capital spending initiatives; the customers' continuing support of payment terms; and our ability to pursue alternative sources of liquidity. A discussion of these and other risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements can be found in the Company's Annual Report on Form 10-K for the most recently ended fiscal year and reports filed from time to time with the Securities and Exchange Commission.



                  WOLVERINE TUBE, INC. FINANCIAL DATA
           Consolidated Statements of Operations (Unaudited)

                                 Three-month           Six-month
 In thousands, except            period ended         period ended
  per share data             7/2/2006   7/3/2005   7/2/2006   7/3/2005
                             --------   --------   --------   --------
 Pounds shipped               101,914     73,982    194,118    157,741
 =========================== ========   ========   ========   ========
 Net sales                   $417,984   $196,321   $716,296   $409,803
 Cost of goods sold           388,847    190,667    676,277    394,089
 --------------------------- --------   --------   --------   --------
 Gross profit                  29,137      5,654     40,019     15,714

 Selling, general and
  administrative expenses       9,764      8,644     17,393     16,952
 Non-recurring advisory fees
  and expenses                  2,119         --      2,106         --
 Restructuring charges             --        136         --         54
 --------------------------- --------   --------   --------   --------
 Operating income (loss)       17,254     (3,126)    20,520     (1,292)

 Interest expense, net          6,780      5,244     12,613     10,566
 Amortization and other, net    1,551        430      2,260        442
 --------------------------- --------   --------   --------   --------
 Income (loss) before
  income taxes                  8,923     (8,800)     5,647    (12,300)

 Income tax provision
  (benefits)                    2,514     (3,118)     1,355     (4,136)
 --------------------------- --------   --------   --------   --------
 Net income (loss)           $  6,409   $ (5,682)  $  4,292   $ (8,164)
 --------------------------- --------   --------   --------   --------

                             ========   ========   ========   ========
 Basic earnings (loss)
  per share:                 $   0.43   $  (0.38)  $   0.28   $  (0.54)

 Diluted earnings (loss)
  per share:                 $   0.42   $  (0.38)  $   0.28   $  (0.54)
 --------------------------- --------   --------   --------   --------
 Basic shares                  15,073     15,051     15,066     15,014
 Diluted shares                15,183     15,051     15,161     15,014
 --------------------------- --------   --------   --------   --------


                    Segment Information (Unaudited)

                             Three-month              Six-month
                             period ended            period ended
  In thousands           7/2/2006    7/3/2005    7/2/2006    7/3/2005
                         --------    --------    --------    --------
  Pounds:
  Commercial               68,453      52,267     133,233     107,722
  Wholesale                28,480      19,371      51,263      42,782
  Rod, bar, and other       4,981       2,344       9,622       7,237
 ---------------------   --------    --------    --------    --------
  Total pounds            101,914      73,982     194,118     157,741
 =====================   ========    ========    ========    ========

  Net sales:
  Commercial             $272,810    $146,881    $487,409    $299,951
  Wholesale               123,454      38,446     189,319      84,027
  Rod, bar, and other      21,720      10,994      39,567      25,825
 ---------------------   --------    --------    --------    --------
  Total net sales        $417,984    $196,321    $716,296    $409,803
 =====================   ========    ========    ========    ========

  Gross Profit:
  Commercial             $  7,790    $  5,472    $ 16,098    $ 15,091
  Wholesale                22,286        (178)     24,454        (302)
  Rod, bar, and other        (940)        360        (533)        925
 ---------------------   --------    --------    --------    --------
  Total gross profit     $ 29,137    $  5,654    $ 40,019    $ 15,714
 =====================   ========    ========    ========    ========


                         WOLVERINE TUBE, INC.
           Condensed Consolidated Balance Sheet (Unaudited)

 In thousands                           7/2/2006   7/3/2005  12/31/2005
 -----------------------------------------------   --------  ----------
 Assets

 Cash and cash equivalents              $ 21,505   $ 13,988   $ 27,329
 Accounts receivable                     103,464    100,159    104,186
 Inventory                               182,139    143,509    146,705
 Other current assets                     19,560     23,583     10,209
 Property, plant and equipment, net      176,341    190,557    181,238
 Other assets                             99,200     97,097     99,098
 -----------------------------------------------   --------   --------
 Total assets                           $602,210   $568,893   $568,765
 ===============================================   ========   ========

 Liabilities and Stockholders' Equity

 Accounts payables and other
  accrued expenses                      $139,262   $ 83,375   $106,754
 Short-term borrowings                       949        948        248
 Pension liabilities                      36,270     29,656     42,889
 Long-term debt                          234,642    235,728    234,920
 Other liabilities                        21,724     19,667     20,652
 -----------------------------------------------   --------   --------
 Total liabilities                       432,847    369,374    405,463
 -----------------------------------------------   --------   --------
 Stockholders' equity                    169,363    199,519    163,302
 -----------------------------------------------   --------   --------
 Total liabilities and
  stockholders' equity                  $602,210   $568,893   $568,765
 ===============================================   ========   ========


                  WOLVERINE TUBE, INC. FINANCIAL DATA
           Consolidated Statements of Cash Flow (Unaudited)

                                              Six-month period ended
 In thousands                                  7/2/2006    7/3/2005
 --------------------------------------------- --------    --------
 Net Income (loss)                             $  4,292    ($ 8,164)

 Adjustments to reconcile net loss to
  cash used by operating activities:
   Depreciation and amortization                  8,614       8,546
   Other non-cash charges                        (2,668)     (2,892)
   Changes in operating assets and liabilities  (15,432)    (11,825)
 --------------------------------------------- --------    --------
   Net cash used by operating activities         (5,194)    (14,335)

 Investing activities:
  Additions to property, plants and equipment    (2,584)     (5,494)
  Other                                              54         244
 --------------------------------------------- --------    --------
  Net cash used by investing activities          (2,530)     (5,250)

 Financing activities:
  Net borrowings                                    667      (1,265)
  Issuance of common stock                           63         421
  Other                                            (993)       (518)
 --------------------------------------------- --------    --------
  Net cash provided by financing activities        (263)     (1,362)

  Effect of exchange rate                         2,163         (82)
 --------------------------------------------- --------    --------
  Net decrease in cash                           (5,824)    (21,029)

  Cash and equivalents at beginning of year      27,329      35,017
 --------------------------------------------- --------    --------
  Cash and equivalents at period end           $ 21,505    $ 13,988
 ============================================= ========    ========

 This press release contains, and our conference call will include,
 references to earnings before interest, taxes, depreciation and
 amortization (EBITDA), a non-GAAP financial measure. The following
 table provides a reconciliation of EBITDA to net loss. Management
 believes EBITDA is a meaningful measure of liquidity and the
 Company's ability to service debt because it provides a measure of
 cash available for such purposes. Additionally, management provides
 an EBITDA measure so that investors will have the same financial
 information that management uses with the belief that it will assist
 investors in properly assessing the Company's performance on a
 year-over-year and quarter-over-quarter basis.

        Reconciliation of Income from Continuing Operations to
    Earnings Before Interest, Taxes, Depreciation and Amortization
                             (Unaudited)

                                   Three-month          Six-month
                                   period ended        period ended
 In thousands                   7/2/2006  7/3/2005  7/2/2006  7/3/2005
                                 -----------------   -----------------
 Net Income (loss)               $ 6,409   ($5,682)  $ 4,292   ($8,164)
 Depreciation and amortization     4,356     4,252     8,614     8,545
 Interest expense, net             6,780     5,244    12,613    10,566
 Income tax provision/(benefit)    2,514    (3,118)    1,355    (4,136)
 ------------------------------  -------   -------   -------   -------
 Earnings before interest,
  taxes, depreciation and
  amortization                   $20,059   $   696   $26,874   $ 6,811
 ==============================  =======   =======   =======   =======


            

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