Home | Business News | Browse by Publication | M | Metal Center News

Second-quarter report and outlook: service centers.

Article Excerpt
Metals USA

Aluminum, Stainless Emphasis Boosts Metals USA in 2Q

Metals USA Inc., Houston, reported last month that sales and profits increased both sequentially and year-over-year in the second quarter.

The service center company reported sales of $480 million, up 5 percent from the same quarter in 2006 and up 4 percent from first-quarter 2007. Net income totaled $14.7 million, an increase of 5.8 percent from the same period one year earlier and more than a 100 percent jump from the first quarter.

"Market conditions during the quarter have been good," Metals USA President and CEO Lourenco Goncalves said. "Our emphasis on aluminum and stainless flat-rolled products, as well as plate and beams, has significantly improved our profit structure."

Demonstrating its emphasis on aluminum, the company acquired Lynch Metals Inc. and Lynch Metals of California Inc. in July. Lynch provides aluminum processing to the aerospace and industrial equipment industries.

Goncalves is optimistic about U.S. business conditions going forward, with the weak dollar serving as a barrier to imported steel.

Additionally, "inventory levels for both service centers and end-users have reached levels that are too low for current demand. Going forward, we see no reason current levels of demand will abate," Goncalves said. "As a consequence of such positive influences, we expect to see price increases in the second half of this year."

Reliance

'Relatively Healthy Demand' Nets Reliance Another Record

Net sales and profits both jumped more than 20 percent to record highs during Reliance Steel & Aluminum Co.'s second quarter.

The Los Angeles-based service center reported...

View this article FREE - Now for a Limited Time, try Goliath Business News
Free for 3 Days!