Metal Management Reports for Quarter

Metal Management, Inc. announced net revenue of $193.5 million and net income of $7.3 million for its first fiscal quarter ended June 30, 2002.

Highlights for the quarter include revenues increasing 16.4 percent to $193.5 million for the quarter; net income of $7.3 million for the quarter; and gross profit increasing to $28.3 million.

Albert A. Cozzi, Metal Management's chairman and CEO, said, "The company is pleased to announce its second consecutive quarter of net income. The momentum that began to develop in our fourth fiscal quarter, principally in our ferrous business and since January of this year, has continued to build into our first fiscal quarter. Both the domestic and export ferrous marketplaces have improved. The average selling price for the company's processed ferrous material in the first fiscal quarter of 2003 was $112 per gross ton, compared to $93 per gross ton in the first fiscal quarter of 2002. However, weakness in the non-ferrous market continues to plague the scrap metal recycling industry. Our average non-ferrous selling price was $0.46 per pound in our recent quarter, down about 3 percent per pound from the quarter ended June 30, 2001. The company's ferrous business represents 71 percent of net revenues, so despite weakness in the non-ferrous market, our operating results and liquidity remain strong."

Cozzi added, "Ferrous and non-ferrous scrap metal pricing and demand continue at a pace in the current quarter similar to our first quarter. The company also continues to work aggressively on our facilities rationalization plan. In July of 2002, we successfully closed on the sale of a redundant property site located in Ohio. This sale reduced debt by about $5 million, and will result in a one-time pre-tax gain of approximately $2.5 million to be recognized in our fiscal quarter ending September 30, 2002."