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 …
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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, …
Reliance Steel &Aluminum Co., Los Angeles, CA, has acquired the Singapore operation of HLN Metal Centre Pte. Ltd. Singapore-based HLN Metal processes and distributes custom machined materials and the sawing of metal products and components. The purchase price was $2.6 million.
The business will operate as Reliance Metalcenter Asia Pacific Pte. Ltd., focusing on supplying the electronics, semiconductor, and solar energy markets. This acquisition represents an expansion of Reliance Steel &Aluminum Co.’s presence in …
Ontario-based Samuel, Son &Co. Inc. has signed a comprehensive strategic alliance agreement with Mexican distributor Grupo Villacero. Villacero will provide Samuel with processing, storage and logistics services from its offices, distribution and service center locations in Mexico, and Samuel will provide the same services to Villacero from its offices, distribution and service center locations in Canada and the U.S.
Julio C. Villarreal G., CEO of Grupo Villacero said: This strategic alliance will provide both companies new and important strengths and synergies to face in a highly competitive manner the consolidation and globalization of the steel market.”
Grupo Villacero is a group of companies focused on the transformation, processing, servicing, trading and …
Reliance Steel &Aluminum Co., Los Angeles, CA, reported sales in the second quarter 2008 were $2.1 billion, an increase of 10.5% over the same period in 2007. Profit increased 27.5% to $156.6 million.
For the first six months ended June 30, 2008, sales were $4 billion, and increase of 7.1% over the prior-year period. Profits increased 12.6% to $264 million.
David H. Hannah, CEO of Reliance said: The main reason for the increased earnings was higher carbon steel prices, which resulted in higher gross profit margins as we quickly passed through the increases to our customers. While we expected carbon steel pricing to continue upwards during the second quarter, the increases were larger than we had anticipated.”
In the third quarter, Hannah expects …
On July 11, US Steel announced an increase of $40 per short ton on flat-rolled steel effective with September deliveries. In addition, AK Steel will be raising carbon steel prices by $50 per ton on September 1. These moves came just after analysts were starting to believe that U.S. prices may be hitting their peaks and preparing to level off.
It’s significant because it underscores the idea that Tom Balcerek, North American editor of Steel Business Briefing, expressed during my recent interview with him for our July 10 issue: A lot of experts are scratching their heads on where exactly this market will go in the next month or even the next year.
The one thing that is certain is that 2008 has been like no other year in the steel business. I asked each of the …
Around the globe, spiking steel prices and tight supply are having an impact on both small and large manufacturers and distributors. The tough market is forcing executives to make tough decisions without driving off customers.
Steel continues to be in short supply in the U.S. for the third month in a row, according to the June Manufacturing Report on Business released by the Institute for Supply Management. What’s more, steel prices have gone up each of the last eight months, and have doubled in the last six.
And though rumors abound in the industry that prices will stabilize, there is little agreement on when that stabilization will take place or what it will entail.
The problem in the U.S. is that steel producers are facing competing …
Latrobe, PA-based Kennametal Inc. has agreed to sell On Time Machining Company to Kyocera Industrial Ceramics Corporation, Vancouver, WA.
OTM, based in Wapakoneta, OH, manufactures indexable cutting tools, including drills, aluminum cutting mills and counterbores. The acquisition will increase Kyocera’s North American manufacturing capacity.
Kyocera Industrial Ceramics Corp., a subsidiary of Kyocera International Inc. of San Diego, CA, manufactures cutting tools and advanced ceramic components.
Kennametal supplies tooling, engineered components and advanced materials consumed in the production …
Private equity firm Platinum Equity, Los Angeles, CA, has agreed to sell PNA Group to Reliance Steel &Aluminum Co., Los Angeles, CA, for $1.1 billion.
PNA Group processes and distributes steel in a variety of forms, including structural beams, tubes, and coiled and rolled steel.
Platinum acquired PNA in May 2006. Following the acquisition, Platinum completed three add-on acquisitions to expand PNA’s capabilities: Metals Supply Co., Precision Flamecutting and Steel, and Sugar Steel. PNA’s revenue in 2007 was $1.6 billion, up from $1.2 billion at the time of the acquisition.
Platinum Equity has been active in the distribution arena. The firm owns Strategic Distribution Inc., Bristol, PA, and metals distributor Ryerson Inc., Chicago, …
Metals distributor Samuel, Son &Co., Ltd., Mississauga, Ontario, has agreed to buy Namasco Limited, the Canadian subsidiary of Klockner &Co. AG of Duisburg, Germany.
Samuel, Son &Co. operates 45 facilities throughout North America and has locations in Australia, The United Kingdom and …
Kennametal Inc., Latrobe, PA, reported sales for its fiscal 2008 third quarter increased 12% from the prior-year quarter, including organic sales growth of 4%.
Our global growth strategies and initiatives continued to deliver results as we grew sales in both of our business segments at a solid pace in the March quarter. The team achieved this growth despite reduced industrial activity in North America and in some market sectors,” said Kennametal CEO Carlos M. Cardoso. “Our sales gains, along with a robust improvement in the operating margin of our metalworking business, made a strong contribution to Kennametal’s overall operating performance.”
“Our advanced materials business, however, was challenged during the quarter by continued slower conditions in certain …
Reliance Steel &Aluminum Co., Los Angeles, CA, reported sales in the first quarter 2008 were $1.91 billion, an increase of 3.6% from the prior-year period. Profit was $107.4 million, down slightly from $111.7 million last year.
David H. Hannah, CEO of Reliance said: The 2008 first quarter turned out well. Pricing for our products was strong with significant increases in carbon steel, leading to improved gross profit margins. Demand in the markets that we serve remained fairly healthy, especially in the non-residential construction, energy, oil and gas, and aerospace industries.”
Hannah said Reliance expects prices to be up or flat for most of the metals it sells in the second quarter. “Demand remains more difficult to predict,” he said.
Reliance is a …
Reliance Steel &Aluminum Co. has acquired Dynamic Metals International, LLC Bristol, CT.
Dynamic is a specialty metal distributor. Dynamic’s 2007 revenues were $11 million. Dynamic will operate as a subsidiary of Service Steel Aerospace Corp., Tacoma, WA. This strategic acquisition expands our existing Service Steel Aerospace specialty product offerings,”said David H. Hannah, CEO.
Reliance Steel & Aluminum Co., Los Angeles, CA, is a metals service center company with more than 180 locations in 37 states and Belgium, Canada, China, South Korea and the United …
Alcoa has completed the sale of its packaging and consumer businesses to New Zealand’s Rank Group Limited.
Alcoa’s packaging and consumer businesses generated 11% of Alcoa 2007 revenues and 4.6% of 2007 after-tax operating income. Businesses included in the sale are: Closure Systems International; Consumer Products, including Reynolds Wrap branded products; Flexible Packaging; and Reynolds Food Packaging.
In total, these packaging businesses have 9,300 employees in 22 countries around the world.
Alcoa will continue to operate its flat-rolled can sheet products serving the packaging market.
Alcoa received $2.5 billion in cash from Rank in the sale. An additional $200 million is expected by April 2008 when regulatory and other approvals are …
Reliance Steel &Aluminum Co., Los Angeles, CA, reported profit in the year ended Dec. 31, 2007, was up 15% to $408 million. Sales were $7.26 billion, an increase of 26% compared with 2006.
The five acquisitions completed during 2007 contributed to the results: Encore Group Limited; Crest Steel Corporation; Industrial Metals and Surplus, Inc.; Clayton Metals, Inc. and Metalweb Limited. Full-year operating results from the 2006 acquisitions of Earle M. Jorgensen Company and Yarde Metals, Inc. further contributed to 2007.
For the fourth quarter, profit was $79.9 million, up 7%. Sales for the 2007 fourth quarter were $1.71 billion, an increase of 9%.
Reliance Steel &Aluminum is a metals service center in the U.S. Through a network of more than 185 …
Kennametal Inc., Latrobe, PA, reported that sales in the first half of 2008 were $1.3 billion, up 14% from the same period a year ago. Organic growth was 3%. Income from continuing operations was up 35% to $85 million.
Sales for the second quarter were $647 million, up 14% from the prior year. Organic growth was 2%. Income from continuing operations was $50 million, up 49%.
Metalworking Solutions and Services Group sales were up 16%, 4% of which was organic growth. India and Asia-Pacific organic growth was 15% and 11% respectively. Latin America organic sales were up 9% and Europe organic growth was 6%.
North America sales fell 2%.
Advanced Materials Solutions Group sales increased during the latest quarter, driven by the effects of …
Samuel, Son &Co., Ltd. has acquired Encore Coils division of Encore Group Limited, a subsidiary of Reliance Steel &Aluminum Co.
Encore Coils currently stocks flat rolled carbon steel, including hot rolled, hot rolled pickled and oiled, galvanized, cold rolled, prepainted galvanized and aluminized.
Wayne Bassett, CEO of Samuel said The Western Canadian market is a very important market for us and the acquisition of Encore Coils will significantly enhance our ability to service our customers in Western Canada. We will now have 10 Western Canadian locations and can offer a full range of processing services, including plate burning, cut-to-length and …
Duesseldorf, Germany-based ThyssenKrupp Services AG is expanding its aerospace materials services business by acquiring UK-based company Apollo Metals Group, which includes Aviation Metals for an undisclosed fee from Murray International Holdings, UK.
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Apollo provides high-grade products such as aluminium, stainless steel and non ferrous metals with value-adding processing services for aerospace manufacturers.
The acquisition will combine Apollo’s largely European and Far Eastern businesses with ThyssenKrupp Services’ largely U.S.-based operations to form a global enterprise with 30 locations in 13 countries and a turnover of more than $700 million.
Currently, ThyssenKrupp Services is servicing the aerospace industry with its subsidiaries in Brazil, …
