Metal Management Reports Sales for Quarter

Metal Management, Inc. announced results for its fiscal first quarter ended June 30, 2003.

Albert Cozzi, vice chairman and CEO, said, "The company is pleased with our financial performance and accomplishments in our first quarter of fiscal 2004. Sales increased to $227.0 million for the quarter, with net income of just over $7.0 million. Our pre-tax income of $11.4 million for the quarter ended June 30, 2003 was almost 20% higher than the pre-tax income of $9.6 million for the quarter ended June 30, 2002."

Cozzi noted, "The worldwide ferrous metal market continues to remain relatively strong and the company has strategically positioned itself to capitalize on opportunities in this arena. Our total processed ferrous metal shipments again exceeded 1 million tons for the quarter. The average selling price for the company's processed ferrous material in the first quarter was just under $142 per gross ton, compared to $112 per gross ton in the first quarter of fiscal 2003. Bolstered by the weakening U.S. dollar, international sales continued to be strong, primarily due to ferrous shipments to China, Korea and Turkey during the quarter. The profitability in our export business was offset by a slight dampening in the domestic ferrous market and the continuation of weakness in our non-ferrous business. In the three months ended June 30, 2003, we exported approximately 296,000 tons of ferrous scrap through vessel shipments, about 77% more than the 167,000 tons exported in the three months ended June 30, 2002."

Cozzi concluded, "Metal Management's cash generating accomplishments continue to strengthen. EBITDA (as defined) was $17.4 million in the quarter ended June 30, 2003, up from EBITDA (as defined) of $16.9 million generated in the quarter ended June 30, 2002, and is also sequentially higher than our strong results in the three months ended March 31, 2003. The hard work of our employees over the last couple of years is showing through in our financial results, and we are grateful for their efforts."