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Service
Centers See Positive Results
Recent financial results from a handful of publicly held metals
distributors reflect improvement in the market.
Gibraltar
Steel reported record sales and its best-ever third-quarter earnings,
according to Chairman and CEO Brian J. Lipke. Net income was $8
million on sales of $208 million, increases of 12 percent and
20 percent, respectively, from the third quarter of 2002.
“Even
with a struggling economy, Gibraltar has been able to produce
solid results in the first nine months of this year, unlike many
of its competitors,” Lipke says. “The acquisitions of
Construction Metals (April 1) and Air Vent (May 1)—which
add approximately $100 million to our annual revenues—contributed
to this success. We also paid down about $30 million in debt during
the third quarter, reducing our net debt to total capital to 47.4
percent as of Sept. 30.”
Gibraltar
continues to operate below peak levels, he says, “so there
is considerable upside to our sales and earnings potential as
the economy resumes strong and sustained growth.”
Reliance
Steel & Aluminum Co. reported third-quarter net income of
$12.4 million on sales of $490.5 million. Earnings and revenues
were up 24 percent and 8 percent, respectively, from the third
quarter of 2002.
David
H. Hannah, CEO, says that Precision Strip Inc., acquired July
1, was an important contributor to profits this quarter. But overall
operating results from Reliance’s other businesses also improved.
During the quarter, Reliance produced strong cash flow, paid down
debt, controlled costs and increased inventory turns.
“We
are positioned better than ever to prosper when the economic recovery
accelerates and expands into the industrial economy,” Hannah
says. “We do believe that the business atmosphere is more
conducive to improved conditions.”
Steel
Technologies Inc. reported an 8 percent increase in sales for
fiscal 2003, ended Sept. 30. Sales reached $512.7 million for
the year, compared with $475 million in fiscal 2002. Net income
for fiscal 2003 fell more than two-fold, however, from the earnings
reported for fiscal 2002. Volume shipped during fiscal 2003 was
down about 2.5 percent from last year.
“U.S.
operations are showing improved performance and our newest operation
in Ottawa, Ohio, made a positive contribution to earnings”
in the fourth quarter, says Bradford T. Ray, chairman and CEO.
“Our Mexican operations experienced a solid rebound in earnings
during the quarter.” He says the company continues to incrementally
gain market share.
The
Mi-Tech Steel joint venture continued to achieve sales and earnings
growth in the fourth quarter, and its newest facility in Canton,
Miss., started up successfully. “We are excited about Mi-Tech’s
earnings and growth prospects,” Ray says.
Metals
USA Inc., which came out of bankruptcy late last year, reported
net income of $2.8 million in the third quarter, compared to a
net loss of $5 million in the same period last year. Sales grew
to $245.1 million, from $238.9 million in the third quarter of
2002. This was the company’s third consecutive quarterly
improvement in profitability.
“We
have taken significant strides toward the improvement of our relationships
with both our suppliers and customers. Nothing is more important
than that,” President and CEO C. Laurenco Goncalves says.
For
the nine-month period, Metals USA sales declined 2.6 percent,
but net income totaled $4.9 million, compared to a net loss of
$19.2 million in the first nine months of 2002.
—By
Corinna C. Petry
Bushwick
Merges 4 Locations
Bushwick Metals Inc. has consolidated its distribution centers
in New Jersey.
Rick
Perlen, vice president and general manager, explains that Bushwick’s
acquisition of Azco Steel Co. and Fisher Bros. Steel Co. in recent
years gave the company four separate metal centers in the state.
These four locations are now consolidated into a single 250,000-square-foot
warehouse in South Plainfield. Bushwick’s corporate office
and a major warehouse are in Bridgeport, Conn., and the company
continues to operate sales offices in Great Neck, N.Y., Englewood,
N.J., and Richboro, Pa.
“This consolidation of operational activities provides a
centralized inventory in New Jersey with capital equipment under
one roof to satisfy our customers’ requirements on time and
efficiently,” says John Schudy, director of operations.
Excelsior
to Open Stainless Polishing Plant
When Toronto-based Excelsior Steel Processing Ltd. opens its new
coil-to-coil polishing plant in Middletown, Ohio, in February,
it will handle some of the largest stainless steel coils found
in the U.S. market.
Herr-Voss
Stamco is custom manufacturing the equipment for the plant so
the company can polish stainless steel coils weighing up to 40
tons, up to 65 inches wide and up to 0.165-inch-thick. Accepting
wider coils gives Excelsior a competitive advantage in a market
where most polishing lines are limited to 48-inch-wide coils,
and an increasing trend to 60-inch-wide product is underway, says
Excelsior President Tom Coward.
The
Middletown facility will allow the company to offer consistent,
high-quality finishes directly to stainless steel producers and
end-users of polished stainless steel in the U.S. market, he adds.
The
Herr-Voss Stamco line will feature five top-side polishing heads,
two bottom-side polishing heads, an automated in-line welder,
a high-power wash/rinse/dryer system, and protective film/paper
interleaf applicator. The integrated capabilities of the line
incorporate new-generation technologies, reducing processing time.
Herr-Voss
Stamco has already demolished the pre-existing equipment foundations
to build and install the new foundations, swarf tanks, piping
and wiring. The company will also provide equipment installation,
start-up and operator training.
Metals
USA Flat Roll Group Sees Changes
Metals USA Inc., Houston, has made some changes at the Flat Rolled
Group, aimed at streamlining decision making and reducing costs.
Company facilities located in Madison, Ill., and Jeffersonville,
Ind., will combine forces to maximize their penetration of the
Southern Illinois, Southern Indiana, Missouri and Kentucky markets.
Similarly, facilities in the Great Lakes Region will also coordinate
efforts to minimize costs and better develop marketing activities.
Robert
J. McCluskey has resigned as senior vice president and as president
of the Flat Rolled Group. The general manager of Metals USA’s
Springfield, Ohio, facility, Roger Krohn Jr., has been appointed
president of the Flat Rolled Group. He retains his current responsibilities
at Springfield.
Briefs
Intermediate steel processor Gibraltar, Buffalo, N.Y., filed a
registration statement with the Securities and Exchange Commission
on Nov. 8 relating to a proposed public offering of 4,130,000
shares of its common stock (3,000,000 will be issued and sold
by the company and 1,130,000 will be sold by the selling stockholders).
The offering will also include an additional 619,500 shares that
may be purchased by the underwriters to cover over-allotments.
McNeilus
Steel Inc., Dodge Center, Minn., upgraded its imaging system with
MetaViewer from Metafile, Rochester, Minn. The new system combines
the advantages of imaging and electronic report management (ERM)
storage in a single platform. Paper documents are scanned and
ERP reports are indexed in text format so that both types of documents
can be recalled with a single search.
Ameristar
Steel Co., Tulsa, has installed a 10,000-pound coil packaging
line that can handle material with outer diameters up to 72 inches.
The PoMaCon Inc. line includes an automatic pick-and-place downender,
coil scale, conveyor, semi-automatic banding table, automated
in-line stacker, and an
18-foot-long sortation table.
Walter
Metals Corp., Hudson, Ohio, has earned ISO 9000: 2001 certification
for its products and services. Walter specializes in distribution
of hot work and cold work tool steels, and alloy steels in rounds,
flats and sheet.
People
Jon Y. Yamamoto has been elected president and a member of the
board of directors for Arco Steel Inc., Houston. He joined the
company in 1991 and served as Houston plant manager, sales manager
and general manager. Yamamoto succeeds Arthur Peet, who was elected
chairman. Peet founded Arco Steel in 1983.
Lori
A. Wiles has been promoted to accounts payable-accounts receivable
supervisor at Marmon/Keystone Corp.’s corporate office. She
has been with the company for 13 years, working as a clerk, accounting
secretary and accounting assistant.
Aaron
Kranz has been appointed to an inside sales position at Marmon/Keystone
Corp.’s Bolingbrook, Ill., service center. He joined the
company in July as a sales trainee.
Sara
Grycan has joined the inside sales team at Chicago Tube and Iron
Co.’s Milwaukee Division.
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