Metal Management, Inc. announced net sales of $257.7 million and net income of $12.6 million for its third quarter.
Consolidated net sales increased to $257.7 million for the quarter, a 52 percent increase from $169.5 million for the quarter ended the same time last year.
The company also reported net income of $12.6 million for the quarter, compared to a net loss of $0.3 million for the same quarter the previous year. The comparability of net income for the two quarterly periods is affected by a reduction in the company's effective tax rate in fiscal 2004 associated with lower taxes from our increasing export sales.
Daniel Dienst, chairman and CEO, said, "Metal Management is extremely pleased to announce its results for the third fiscal quarter ended December 31, 2003. Consolidated net sales increased 52 percent to $257.7 million compared to the quarter ended December 31, 2002. Of even greater significance, our operating income more than tripled to $14.5 million from $4.3 million in the year ago period. Net income for the quarter ended December 31, 2003 was $12.6 million, or $1.07 per diluted share, an accomplishment for which our employees should be extremely proud."
"The ferrous scrap marketplace continues to evidence remarkable strength, positively impacting both our volumes and margins. Our ferrous scrap shipments increased by about 8 percent to approximately 1.1 million tons for the third quarter of fiscal 2004 compared to the same period last year. The average selling price for our processed ferrous scrap metal shipments was $172 per gross ton in the quarter ended December 31, 2003, compared to $112 per gross ton in the quarter ended December 31, 2002."
"Our processed ferrous shipments to domestic consumers were seasonally strong for the October through December timeframe, attributable to strengthening in the manufacturing economy and a stronger demand from the consolidating steel industry in the U.S. Our third quarter volumes were up almost 6 percent compared to our domestic volumes in the third fiscal quarter of last year. This three-month calendar period has historically exhibited slowness in ferrous scrap purchases by the domestic steel industry."
"International demand for ferrous scrap continues to be strong. The company had an increase of 15 percent in ferrous scrap shipments exported via ocean vessel, primarily from our Northeast yards. In our third quarter, we exported approximately 250,000 tons of ferrous scrap by vessel, up from 217,000 tons in the year ago quarter,” Dienst added.