Metal Management, Inc. announced net sales of $192.8 million and net income of $6.4 million for its second quarter ended September 30.
The company reported net sales increased 22.8 percent to $192.8 million for the quarter compared to the same time last year.
Net income for the quarter was $6.4 million, representing the third consecutive quarter of profitability.
Gross profit increased to $24.8 million in the quarter, up 41 percent from $17.6 million for the same time last year.
Albert A. Cozzi, Metal Management's chairman and CEO, noted, "The company continues to make significant financial and operational strides as evidenced by our third successive quarter of net income. Our ferrous operations remained strong during the quarter. The company's total processed ferrous metal shipments increased 9.3 percent, to slightly over one million tons for the quarter ended September 30, 2002, compared to the quarter ended September 30, 2001. The strength in our ferrous business during fiscal 2003 is attributable to both increases in domestic steel production and a robust international marketplace. Supported by strength in the results of our ferrous operations, we have reduced our bank borrowings to $77 million at the end of our second fiscal quarter and maintain strong availability under our line of credit."
Cozzi added, "The non-ferrous markets remain soft. The overall weak conditions in the commercial aerospace industry and the stainless steel sector continue, and it is likely these markets will remain weak in the near-term. However, even with these circumstances affecting the non-ferrous side of our business, the company's overall gross profit remains attractive at approximately 13 percent of sales for the quarter. Our success over the last year stems from our continuing focus on reduced overhead costs, greater efficiencies in our many locations across the country and maximizing utilization of our fixed assets and employee base. We still see opportunities to enhance margins, increase cash flow and reduce debt. Continued successful execution of our growth plans will position us well to leverage our competitive position when the economy rebounds."
Cozzi concluded, "Looking forward to our next fiscal quarter, we expect the domestic ferrous market to soften somewhat due to seasonal and cyclical factors. Longer term, we remain optimistic for our ferrous business as previously idled steel making capacity is brought back on line and global economic conditions strengthen."