Sales for fiscal year 2010 were down 26.2% for the diversified metals manufacturer.
Latest In Metals Service Centers
CEO: ‘Business conditions continued to improve in the first quarter.”
Sales for the third quarter were down 10% for the diversified metals manufacturer.
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CEO: Fourth quarter demand and pricing at ‘better levels than expected.’
Acquisition expands Worthington Steel’s cold rolled strip business.
Precision Castparts takes interest in Yangzhou Chengde Steel Tube Co.
Esmark bought the distressed firm for $3.5 million.
As uncertainty continues to impact the metal services center, CEO declines to provide earnings guidance for 4Q.
But Metals Service Center Institute report says September inventory is still about 45% lower than last year.
Reliance Steel & Aluminum Co., Los Angeles, CA, reported its first quarterly net loss since becoming a public company in 1994. In the second quarter, Reliance had a net loss of $5.8 million, compared with profit of $156.6 million in the 2008 quarter, and $20.1 million for the first quarter of 2009.
Sales in the second quarter were $1.2 billion, down 41% from the prior-year period, and down 20% from the first quarter.
(The 2009 second quarter financial results include in cost of sales a pre-tax LIFO income amount of $75 million, compared with a pre-tax LIFO expense amount of $40 million for the 2008 second quarter, and $75 million of LIFO income for the 2009 first quarter.)
"The 2009 second quarter was the most difficult operating environment we have ever experienced at our …
Reliance Steel & Aluminum Co., Los Angeles, CA, reported sales in the first quarter 2009 were $1.56 billion, down from $1.91 billion in the first quarter 2008. Profit was $20.1 million, down from $107.4 million in the prior-year period.
According to CEO David Hannah: "Our tons sold for the 2009 first quarter were down 1% and our average price per ton sold was down 16% compared to the 2008 first quarter. However, on a same-store basis, excluding our 2008 acquisitions, our tons sold were down 34% and our average price per ton sold was flat for the 2009 first quarter compared to the 2008 first quarter.
"Comparing our 2009 first quarter to the 2008 fourth quarter, our tons sold were down 14% and our average price per ton sold was down 15%. For the 2009 …
Chicago, IL-based Ryerson Inc. has opened a new service center in Clearfield, UT, to serve the Utah Intermountain area. The 40,000-square-foot facility will offer aluminum, stainless and carbon products as well as sawing services.
Future plans call for the addition of plate burning and a wider range of processing services.
With the exception of a few strategic acquirers, it’s pretty rare these days that we hear about a distributor actually expanding in the U.S. But one metals distributor is doing just that.
Chicago-based metals distributor and processor Ryerson Inc. announced recently it will open two new service centers in Utah and Texas by the end of the first quarter 2009. What’s more, the Platinum Equity-owned distributor doubled its stake in Chinese venture VSC-Ryerson China Ltd from 40% to 80%. VSC-Ryerson had $160 million in 2008 sales.
It’s one piece of not-so-bad news after a slew of falling fourth-quarter and year-end results.
At the National Association of Wholesaler-Distributors annual meeting this week in Washington, D.C., I heard …
Kennametal Inc., Latrobe, PA, reported second quarter sales of $569 million, a decrease of 12% from the same quarter a year ago. Profit was $15.7 million, down 68.7%.
For the first six months of fiscal year 2009, sales were down 1.6% to $1.23 billion. Profit was down 39.9% to $51.1 million.
"Kennametal has made solid progress in executing strategies to balance our businesses across served geographies and end markets. However, we are not immune to the rapid and significant global decline in industrial production that has taken place over the past few months," said President and CEO Carlos Cardoso. "As a result, we continue to take actions to reduce our costs and right size our business in line with current economic conditions while minimizing the …
Kennametal Inc., Latrobe, PA, announced plans to reduce headcount by 800 positions within the next three to six months in an effort to address current market challenges and reduce costs while improving competitiveness. The cuts are in addition to 400 positions announced as part of a restructuring plan in April 2008.
A global decline in industrial production, amplified by customers reducing their inventories has significantly decreased demand and precipitated further cost reduction actions. In addition to the headcount reductions, the company continues to adjust its manufacturing workforce in line with production requirements and to implement other steps to reduce costs.
The global supplier of tooling, engineered components and advanced materials expects to …
Reliance Steel &Aluminum Co., Los Angeles, CA, reported sales of $2.57 billion in the third quarter 2008, an increase of 42% from the year-ago period. Profit was $152.5 million, up 63%.
Reliance’s recent PNA Group acquisition is included in the results.
For the nine months ended Sept. 30, 2008, profit was $416.5 million, up 27%, and sales were $6.58 billion, up 18%.
The 2008 third quarter was reasonably strong from both a demand and pricing perspective, especially in July and August,” said David Hannah, CEO. “During September we began to see some softening in prices and volume. However, this slowdown was more than offset by our PNA Group acquisition on Aug. 1, which was accretive to our third quarter results.
“Overall, through the first …
Private equity firm Platinum Equity has agreed to buy SCM Metal Products Inc. from Gibraltar Industries, Inc. SCM manufactures and distributes copper-based powder and pastes and copper oxide powders to a broad range of industries.
SCM has manufacturing facilities in Research Triangle Park, NC, and Suzhou, China.
This is a very exciting time for all of us at SCM,”said Barton White, president of SCM. “We expect to have additional resources to grow our business both organically and through M&A transactions. There are many opportunities for growth in the U.S., China and the other export markets SCM serves in the powder metallurgy, chemical, electronics and industrial markets.”
Platinum has a history in the metals business.
In August 2008 …
Worthington Industries, Inc., Columbus, OH, reported first quarter sales of $913.2 million, a increase of 20% over same period sales of $750 million a year ago. Profit improved 240% to $68.6 million.
While we benefited from a rising price environment, we have also been very focused on reducing costs, maximizing asset utilization and driving improvements in our operations,”said John McConnell, CEO. “Unfortunately, the record quarterly sales and net earnings are not sustainable given current market conditions, particularly in the Steel Processing and Metal Framing business segments.”
On Sept. 23, 2008, U.S. Steel and Worthington Industries announced a plan to expand their existing Worthington Specialty Processing joint venture. Under the terms of the agreement, …
