Philip Services Reports Numbers for Quarter

Philip Services Corp. announced its consolidated financial results for the quarter ended March 31. "PSC had income from operations before special charges of $6.2 million during the quarter, compared to $2.9 million in the same period of the prior year. Our success in the current quarter reflects the benefit of cost cutting measures and closure of unprofitable locations." said Thomas O'Neill, Jr., CFO.

"With the strengthening in manufacturing sectors of the North American economy and positive signs within the steel industry, we expect our financial performance to continue to improve.

Revenue for the first quarter of 2002 was $363.3 million compared to $413.0 million for 2001. This decrease was primarily due to the overall economy. Although revenue from the company's Metals Services business declined by about $32 million on a year-over-year basis due to a decrease in scrap volume managed by PSC and price declines, there are indications the business is improving. Spot prices and volume are trending up since the U.S. government's trade ruling.

Income from operations for the first quarter of 2002 was $1.6 million, which included special charges of about $4.6 million related to closure costs for the Chicago office and the company's business process re-engineering project, PSC Way. This compared to income of $0.1 million the same time last year, which included special charges of $2.8 million.

Income from operations for the quarter was $0.6 million, compared to $2.5 million the first quarter of 2001.

Revenue from the Metals Services Group for the quarter was $111.7 million, a reduction of $32.2 million compared to the first quarter of 2001. This decrease was due to lower volume and prices of ferrous scrap.

The loss from operations for the first quarter was $2 million, compared to a loss from operations of $6.2 million for the first quarter of 2001 which included a $7.6 million charge for bad debt.