Metal Management Reports Sales Jump

Metal Management, Inc. announced results for the third quarter and nine-month periods ended Dec. 31, 2002.

For its third quarter, net sales grew 20 percent to $169.5 million and reported operating income of $4.3 million compared to an operating loss of $3.1 million for the quarter ended the same time last year. The company reported a net loss of $0.3 million, compared to a net loss of $6.4 million for the same time last year.

For the nine months ended December 31, 2002, consolidated net sales grew to $555.9 million and operating income was $25.2 million. Net income for the nine months ended December 31, 2002 was $13.4 million, or $1.29 per diluted share.

Albert Cozzi, Metal Management's chairman and CEO, noted, "The company is encouraged by the continued year-to-year improvements in our operating performance. We continue to actively enhance our metal margins, particularly in our ferrous business. Gross profit increased to $19.1 million and operating income was $4.3 million for the quarter ended December 31, 2002. Traditionally, seasonal softening in the domestic ferrous marketplace impacts our operating results in our third fiscal quarter. We were able to offset this to some extent by capitalizing on opportunities in the strengthening export markets. Our total processed ferrous metal shipments were slightly less than one million tons for the quarter, up 60,000 tons from the quarter ended December 31, 2001."

Cozzi added, "Our overall year-to-date performance remains solid, with net sales of almost $556 million and net income of $13.4 million . . . Additionally, we have reduced our debt by $28.3 million in the nine-month period ended December 31, 2002. This improved performance is due to continuing efforts to reduce operating costs and maximize utilization during a period when demand and pricing in our global ferrous markets have improved."

Cozzi concluded, "Our fourth fiscal quarter is demonstrating benefits associated with improved pricing and demand from the ferrous markets. The export market also remains active, and domestic prices for some ferrous grades of scrap metal have hit three-year highs. Despite strength in the ferrous markets, there continues to be slow inbound flows of industrial scrap to our yards from the weak manufacturing sector."