Metal Management Posts Profit for Quarter

Metal Management, Inc. announced net revenue of $166.6 million and net income of $2.3 million for its fourth fiscal quarter. This compares favorably with the fourth quarter 2001 figures, which showed revenue of $156.1 million and a net loss of $18.5 million.

Net income for the quarter included non-recurring expenses and reorganization expenses of $0.8 million and $0.0 million, respectively, compared to $3.8 million and $5.0 million, respectively, for the quarter ended March 31, 2001.

Albert Cozzi, Metal Management's chairman and CEO noted "the company is pleased to report $2.3 million of net income for the fourth fiscal quarter. Most notable has been the improvement in our ferrous business since the start of January 2002, due to improvements in the domestic steel-manufacturing sector and the firming of the export markets for scrap metals in the last half of Fiscal 2002. Gross profit increased to $22.7 million, or 13.6 percent of sales, for the quarter ended March 31, 2002 from $14.7 million, or 9.4 percent of sales, for the quarter ended March 31, 2001 principally due to improved material margins and benefits associated with our cost containment activities implemented since emergence from Chapter 11."

Consolidated net revenue for the twelve months ended March 31, 2002 decreased by $135.5 million, or 17.7 percent, to $631.1 million for the fiscal year compared to consolidated net revenue of $766.6 million the previous year.

The decrease in consolidated net revenue was primarily due to lower volumes of products shipped coupled with lower average selling prices attributable to weak metals market conditions.

Gross profit was $72.7 million, or 11.5 percent of sales, in fiscal 2002 compared to gross profit of $61.9 million, or 8.1 percent of sales, in fiscal 2001. Gross profit as a percentage of sales in Fiscal 2002 reflects significant improvement over Fiscal 2001 as a result of better spreads in the ferrous business and $10 million in annualized reductions in processing expenses.