| April 2008 |  |
| Service Center News | |
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A.M. Castle Reports Net earnings totaled $51.2 million, slightly off the record $54.2 million recorded during the previous year. Net earnings in the fourth quarter of $6.7 million were off 25.5 percent from the $9.0 million reported during fourth-quarter 2006. Net sales in the fourth quarter totaled $322.1 million, virtually identical to the $322.0 million reported during the same period of 2006. “As anticipated, our fourth-quarter results were weaker than the balance of the year. This was due to typical seasonal slowness and lower margins, especially in our aerospace business as we continued to experience the impact of excess inventory of heat-treated aluminum plate in the aerospace supply chain,” says Michael Goldberg, president and CEO of A.M. Castle. Metal segment sales totaled $294.0 million in the fourth quarter, $1.1 million less than the fourth quarter of 2006. Volume was down 7.1 percent, while material price increases were up 7.3 percent. For the full year, metal segment sales topped $1.3 billion, an increase of 22.8 percent vs. 2006. The Transtar acquisition accounted for $191.7 million of the $242.1 million increase. Material price increases accounted for 14.2 percent of the growth, excluding Transtar, with volume and product mix accounting for the balance of the year-over-year sales change. “Aerospace and oil and gas demand remained strong, but we experienced softer demand in the balance of the business coming off record high levels of activity in 2006,” Goldberg says. “Overall material pricing was favorable vs. 2006, but there were some volatile swings throughout the year, especially in our nickel and stainless products.” Looking forward, Goldberg says the markets A.M. Castle serves are likely to remain strong, and the company has not seen any significant indicators of a recession in its businesses. “Material pricing has stabilized at historically high levels and we believe they will remain favorable for most of our products. Margins will likely remain at current competitive levels, even in aerospace, as the industry continues to work through inventory already in the pipeline due in part to the well-publicized production delays in large commercial aircraft.” ThyssenKrupp Becomes Majority Partner TWB operates five facilities, including two in Mexico, and supplies tailored welded blanks for use in the automotive industries. It had been a 50-50 venture between ThyssenKrupp and Worthington. The move further integrates TWB into ThyssenKrupp Steel’s worldwide tailored blanks network, which includes facilities in Germany, China, Turkey, Italy, Sweden and the Czech Republic, the company says. Worthington has announced plans for greater presence in Mexico through another joint venture. Serviacero Worthington, a 50 percent joint venture with Serviacero Planos, plans to expand further in Mexico with a greenfield site in the Monterrey region. The addition of this facility would give Serviacero Worthington three locations in Mexico. The first phase of the Monterrey steel processing operation will include slitting, with pickling and blanking added in phase two. Serviacero Worthington is a steel service center with facilities in Leon and Queretaro in Central Mexico. Worthington Reports Higher Sales, Earnings “Our performance this quarter showed significant improvement,” says Chairman and CEO John McConnell. “Steel processing has done an excellent job of increasing volumes and market share to help offset the weakness in the automotive sector.” For the nine-month period, net sales of nearly $2.2 billion were 1 percent higher than $2.19 billion for the same period the previous year. Net earnings totaled $53.2 million, a 29.7 percent drop from the $75.7 million during the first nine months of the 2007 fiscal year. In the processing segment, quarterly net sales rose 8 percent, or $26.1 million, to $350.4 million. Volumes rose 9 percent, which was partially offset by lower average pricing, down 1 percent. Segment results were negatively impacted by an unplanned furnace outage at Severstal, the primary supplier to, and minority partner in, the company’s Spartan Steel Coating joint venture, though operating income increased in spite of the business interruption. Among other segments, Worthington identified five metal framing facilities for closure or downsizing during the quarter. The closures are expected to result in $9 million in annual savings once fully implemented. In February, the first facility was closed in Wildwood, Fla. The remaining facilities are slated for closure over the next several months. Main Steel Relocates Dallas Facility In addition to the new plant’s increased size and rail capabilities, the company has installed a carbon cut-to-length line with a six-high leveler, which will service cold-rolled, P&O, galvalume, galvanneal, galvanized and prepainted carbon steel. The carbon line will have the ability to cut sheet 60 inches wide and 167 inches long with a minimum gauge of 26 and a maximum of 12, allowing the Main Steel Arlington facility to service a wider range of customers and their metals. National Bronze & Metals In late February, NBM added two veterans to its sales team, Paul Tomson and Jonathan Walker. “It’s a very exciting time for NBM,” says Phil Meehan, vice president of sales. “The addition of both Paul and Jonathan simply adds to our talent pool of specialists. I know what they can deliver to our customers as far as service and knowledge. I’m looking forward to seeing them in action.” Tomson was brought on for “special projects,” including rejuvenating old business and pinpointing key markets for the company. Tomson has 20 years of metals sales experience with companies such as Non-Ferrous Metal Works, ABC Metals, Bralco Metals, Tiernay-Transtar Metals, American Aerospace Materials and High Temp Metals. Walker will be joining the NBM inside sales team. A Baylor University graduate, Walker was formerly with the Earle M. Jorgenson Co. Briefs Berkshire Hathaway Inc. has completed the acquisition of 60 percent of Marmon Holdings Inc. for $4.5 billion, including tubular distributor Marmon/Keystone in Butler, Pa. The remaining 40 percent of Marmon owned by the trusts of the Pritzker family will be acquired in stages over the next five to six years. Behringer Saws, Morgantown, Pa., has launched a new, easy-to-navigate web site, which presents the company’s variety of automatic bandsawing, marking, punching, drilling and shearing machines, circular cold saws and material handling systems. Information on the company’s entire line of high-performance bandsaw machines including horizontal, horizontal mitre and CNC horizontal configurations is available at www.behringersaws.com. Worthington Steel, Columbus, Ohio, has been recognized by Deere & Co. as a partner-level supplier for 2007 and was also named a 2007 Enterprise Supplier of the Year in the John Deere Achieving Excellence Program. The partner-level status is John Deere’s highest supplier rating. Parker Steel, Toledo, Ohio, has expanded its inventory to include round tubing in a 4140 modified grade, as well as heat-treated hexagon bar. A variety of sizes ranging from 10mm OD to 80mm OD with different wall thickness are currently stocked and available for immediate shipment. Parker Steel specializes in metric-sized metals with over 5,000 line items stocked. A completely redesigned web site for the SCS Process (www.scsprocess.com) has been launched by The Material Works, Red Bud, Ill. The new site provides examples of products and processes that use SCS-processed material, as well as contact information for application assistance or samples. Sunbelt-Turret Steel Inc., Cooper, Texas, has been awarded an ISO 9001:2000 Management System certificate. Sunbelt-Turret distributes special bar quality carbon and alloy bar stock. Obituaries Mrs. Samuel is survived by one daughter, Kim Samuel-Johnson, son Mark Chadburn Samuel, and five grandchildren. Besides her husband, she was preceded in death by one daughter, Tammy Samuel-Balaz. A graduate of Trinity College, University of Toronto, she was heavily involved with the Samuel family businesses. Besides Samuel, Son & Co., she was also a director and former chairman of the publicly traded Samuel Manu-Tech Inc., co-founded Sam-Son Farm, a leading thoroughbred breeding and racing operation, and was heavily involved in the Samuel Family Foundation. She was a former chairman of the Royal Ontario Museum Board of Trustees and former co-chair of the ROM Foundation Board of Governors. Two former key employees of Precision Steel Warehouse, a Franklin Park, Ill., stainless steel distributor, have died. Dave Hillstrom, who served as president and CEO of the company for 25 years, died Feb. 21 at the age of 81. On Feb. 25, former vice president of sales and marketing Joe Cole died at age 77. Hillstrom was a graduate of Northwestern University and a lieutenant in the U.S. Army Infantry during the Korean Conflict before joining PSW in 1951. He worked as an outside salesman, sales manager, vice president-sales and executive vice president-general manager before his promotion to president in 1974. He also became chairman of the board in 1981, holding those positions until his retirement in 1999. Cole was a graduate of the University of Illinois, where he played on the Rose Bowl championship team of 1952. He also spent two years in the Air Force before embarking on a lifelong career in the metals industry. He worked for House of Stainless for 26 years, where he served as vice president of sales before joining PSW. He retired in 2000. People John Hirt has been promoted to vice president and general manager of Feralloy Corp.’s Midwest Division. Paul Abernathy will replace him as manager of Indiana Pickling and Processing Co. and Feralloy Processing Co. Scott Cooley has been appointed vice president of sales and customer service at Steelscape, Kalama, Wash. Additionally, the company has named Buster Yonych manager of sales and service-West; Marc Fullem general manager of sales and service in Fairfield, Ala.; Tom Prybyloski has rejoined the company to call on accounts out of Fairfield; and Justin Powell has been named vice president of finance. Derrick J. Derringer has been promoted to vice president of quality and operations at Marmon/ Keystone Corp., Butler, Pa. Derringer will be responsible for the quality improvement process, warehouse operations and transportation at all U.S. locations. Joe Korkosz has joined Metal Processing Corp., Gary, Ind., as manager of quality and safety. Korkosz has more than 30 years experience in the steel industry with Ryerson Inc., most recently as quality manager for Ryerson’s coil leveling operation. Phil Anderson has been promoted to fabrication project manager at Southern Aluminum Finishing Co., Atlanta |
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