IMCO Recycling Inc. reported second quarter net earnings of $2.534 million, significantly above last year’s second quarter earnings of $918,000.
Don Ingram, chairman and CEO, said the improvement in the company's second quarter financial results "was due mainly to increased profitability at our specialty alloys facilities. These plants recorded greater processing volume and higher sales of specification aluminum alloys to auto manufacturers and their component suppliers in the second quarter. In addition, profit margins increased because of higher alloys prices and operating cost reductions we've put in place.
"Our wholly owned subsidiary, U.S. Zinc Corporation, improved both its volume and segment income in the second quarter as sales of zinc oxide increased," he said. "Zinc oxide is mainly used in the vulcanizing process for tires and other rubber products.
"Processing volume at our aluminum recycling facilities continues to be restrained by weakness in many sectors of the U.S. industrial economy. We are hopeful that recent strong improvement in leading indicators of manufacturing activity will bring increases in our recycling plant operating rates later this year and in 2003."
Ingram said the company's specialty alloys processing volume and profitability are expected to decline in the current reporting period from the second quarter level, in part because of the traditional July shutdown of auto manufacturing facilities for model changeovers.
Total aluminum and zinc processing volume in 2002's second quarter was 620.0 million pounds, down two percent from volume of 632.2 million pounds in the 2001 quarter.
Revenues in the second quarter totaled $180.5 million, two percent more than revenues of $177.5 million in the same period last year.
Processing volume in the first six months of 2002 declined two percent to 1.23 billion pounds from 1.25 billion pounds in the first half of 2001. Revenues in the first half of this year were $338.4 million, seven percent below revenues of $364.8 million in the same period of 2001.