Insteel Industries, the nation’s largest manufacturer of steel wire reinforcing products for concrete construction, announced first quarter earnings fell by more than 30 percent due to lower prices and higher costs for raw materials.

The Mount Airy-based company’s net income decreased to $4.5 million to $6.7 million in the first quarter of 2017. The earnings per share was 23 cents, which missed analyst expectations by 13 cents per share.

The company reported a 1.6 percent, $93.9 million from 92.4 million, in net sales.

“We are encouraged by the stronger-than-anticipated order activity during the first quarter, which is typically our seasonally weakest period of the year,” said H.O. Woltz III, Insteel’s president and CEO.

Shipments decreased 4.7 percent from the last fiscal quarter of 2016, and selling prices decreased 4.5 percent. Prior high cost inventory purchases caused competitive pricing pressure.

Cash flow from operations fell to $3.8 million from $12.4 million in the prior year quarter due to a difference in net working capital, which used $4.6 million of cash.

The company’s shares were trading lower. Insteel Industries was trading at $34.15, down 73 cents, or 2.09 percent in afternoon trading.