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Another 'fantastic' quarter: Service center executives were almost giddy about their universally strong results for the second quarter and first half of 2006. Following is a roundup of their latest conference calls with analysts and investors.

Article Excerpt
By the Staff of Metal Center News

A.M. Castle

Reports Record Sales, Earnings Performance

A.M. Castle & Co., Franklin Park, Ill., reported record sales and earnings performance for the second quarter and first half of 2006. Consolidated net sales for the second quarter totaled $275.6 million, an increase of 9.8 percent from second-quarter 2005. For the first half, net sales totaled $554.8 million, an 11.6 percent increase from the same period last year.

"Excluding material price increases, we achieved 5 percent sales growth in the second quarter and 7 percent sales growth for the first half of the year," said Michael Goldberg, president and CEO.

Net income for the second quarter was $14.1 million, up from $13.2 million in second-quarter 2005. First-half net income of $29.9 million was up from $24.8 million in the first half of last year.

"We continue to experience strong demand in the markets we serve, particularly aerospace, oil and gas, and mining and heavy industrial equipment," said Goldberg, who acknowledged that a moderate increase in metals pricing contributed to the company's results.

A.M. Castle's new Birmingham, Ala., facility--part of the company's planned expansion of its metals business into the southern U.S. manufacturing region--shipped its first customer orders last month. The $6 million upgrade of its information system is on track for completion by early 2008.

The company reported 12 percent sales growth in its metals business, and 8 percent growth in its plastics business, during the first half. "We continue to explore various growth opportunities in both our metals and plastics segments, Goldberg said. "Our excellent balance sheet has us well-positioned for both organic growth and potential strategic acquisitions that complement and enhance our existing product offerings, as well as expand our geographic reach."

A.M. Castle officials remain optimistic about customer demand in the second half, though they expect sales to moderate due to typical seasonal patterns.

Metals USA

Operating Income Up 37 Percent

Metals USA Inc., Houston, announced second-quarter sales of $458 million, which exceeded sales in the prior quarter and second-quarter 2005 by about 6 percent. Operating income during the quarter was $37 million, or 37 percent higher than the $27 million recorded during second-quarter 2005.

"We are very pleased with our performance this quarter as we continue to maximize our profitability and maintain strong inventory control," said Lourenco Goncalves, chairman, president and CEO of Metals USA. "Our recent acquisitions have been adding to our results from day one and, as our identified synergies are realized, their contributions will be even more rewarding."

The company's adjusted EBITDA of $42 million for the second quarter was $11 million better than the first-quarter 2006 figure of $31 million and $14 million higher than second-quarter 2005.

Metals USNs...

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