Metal Management Boasts Healthy Profits

Metal Management Inc., Chicago, has posted net sales of $1.7 billion and net income of $92. 3 million for its 2005 fiscal year, which ended March 31, 2005. The net income calculates to $3.74 per diluted common share.

For the fourth quarter ending March 31, consolidated net sales increased by more than 25 percent from the same quarter one year earlier, although net income was down about 33 percent per share on higher costs of sales.

Metal Management has also reported that debt under the company’s credit facility was eliminated in the fiscal year ended March 31, 2005. “The company ended the fiscal year with superior financial flexibility and a cash position of $52.8 million,” its news release states.

Additionally, the company has reported ore than 5.1 million tons of metal were processed and sold or brokered in the 2005 fiscal year, with ferrous shipments increasing by 6 percent to approximately 4.7 million tons. Nonferrous shipments increased by nearly 18 percent to nearly 500 million pounds.

New ventures formed during the fiscal year included a joint venture to create Metal Management Nashville LLC and another joint venture to create Port Albany Ventures LLC, designed to increase Metal Management’s opportunities in the stevedoring and material handling businesses in the northeastern United States.

“Fiscal 2005 was an outstanding year for Metal Management despite challenging industry conditions in the first and fourth quarters,” remarks Daniel W. Dienst, chairman, CEO and president of the firm. “It is a testament to this company’s talented employees that our financial and operational performance once again exceeded our expectations and I want to thank them all for their continued dedication and hard work.”

Added Dienst, “We are particularly proud of Metal Management’s strong performance in the fourth quarter, in which we generated significant earnings while ferrous scrap metal prices declined.”

Metal Management Inc. is one of the largest full service metal recyclers in the United States, with approximately 40 recycling facilities in 15 states.