http://www.metalcenternews.com RSS feeds for Metal Center News 60 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10732/AISI-Applauds-Rebirth-of-Senate-Steel-Caucus.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10732 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10732&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10732/AISI-Applauds-Rebirth-of-Senate-Steel-Caucus.aspx May 15, 2013 AISI Applauds Rebirth of Senate Steel Caucus The North American steel industry was encouraged by the recent reformation of the Senate Steel Caucus. Senators Jay Rockefeller, D-W.Va., Jeff Sessions, R-Ala., Sherrod Brown, D-Ohio, and Pat Toomey, R-Pa., announced plans to restart the bipartisan group. "I commend Senators Rockefeller, Sessions, Brown and Toomey on their leadership in re-energizing the Senate Steel Caucus. Their strong bipartisan leadership on legislation vital to the steel industry will ensure that steel remains the backbone of the U.S. manufacturing sector," says Thomas Gibson, president and CEO of the Washington-based American Iron and Steel Institute, the trade organization representing domestic producers. AISI claims the domestic steel industry directly employs 153,700 individuals and indirectly supports a million more jobs. "AISI looks forward to continued collaboration with the Senate Steel Caucus as we work to advance public policies that will promote American steel manufacturing competitiveness," Gibson says. Wed, 15 May 2013 14:47:00 GMT f1397696-738c-4295-afcd-943feb885714:10732 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10731/Fabtech-Adds-India-Exposition-in-2014.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10731 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10731&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10731/Fabtech-Adds-India-Exposition-in-2014.aspx May 15, 2013 Fabtech Adds India Exposition in 2014 Fabtech, North America's largest metal forming, fabricating, welding and finishing event, is expanding to the fast-growing industrial marketplace of India. The first Fabtech India exposition will be co-located with India’s premier welding exposition, the Indian Institute of Welding’s Weld India, from April 10-12, 2014, in New Delhi. "More and more buyers from India have been coming all the way to Fabtech to see U.S. welding and manufacturing technologies," says Ray Shook, executive director of the American Welding Society, one of Fabtech's co-sponsors. "Now we can take U.S. technology exhibitors right to the Indian market in an easy, affordable way." In recent years, the Fabtech exposition brand has expanded from annual shows in the United States to include the annual Fabtech Mexico and the biennial Fabtech Canada. Fabtech India will be presented every three years, and the first is timed to coincide with the 2014 International Congress of the International Institute of Welding. Fabtech India and Weld India will be held at New Delhi's Pragati Maidan exhibition complex, where India’s largest trade shows are hosted. About 250 international exhibitors and 10,000 attendees are projected to exchange challenges and solutions at the exposition. Attendees will represent India's fast-growing industries, such as energy, refining, infrastructure and manufacturing. Fabtech is co-sponsored by five associations: the American Welding Society, the Fabricators & Manufacturers Association, International, the Society of Manufacturing Engineers, the Precision Metalforming Association and the Chemical Coaters Association International. Wed, 15 May 2013 14:45:00 GMT f1397696-738c-4295-afcd-943feb885714:10731 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10730/European-Commission-OKs-SapaHydro-Combination.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10730 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10730&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10730/European-Commission-OKs-SapaHydro-Combination.aspx May 15, 2013 European Commission OKs Sapa/Hydro Combination The European Commission has approved the joint venture of the aluminum products businesses of Sapa and Hydro, to be owned 50/50 by Orkla and Hydro. The transaction has already been approved by U.S. regulators and is expected to be cleared by Chinese authorities later this year. The decision from the European Commission is subject to divestments of Sapa’s MPE business in Harderwijk, the Netherlands, and Hydro’s extrusion plant at Raufoss in Norway, including Hydro’s affiliated fabrication plant in Vetlanda, Sweden. A divestment plan has been initiated for these operations, which will be run as separate units going forward. "It is encouraging that we now have achieved another important milestone in forming the world's leading provider of aluminum solutions. The foundation for our joint venture remains solid; by combining the two companies we will strengthen our offering to our customers across the globe," says Svein Tore Holsether, CEO of Sapa Group, who will assume the same position with the proposed joint venture. Wed, 15 May 2013 14:43:00 GMT f1397696-738c-4295-afcd-943feb885714:10730 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10729/Novelis-Ends-Profitable-Fiscal-Year-With-Strong-Quarter.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10729 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10729&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10729/Novelis-Ends-Profitable-Fiscal-Year-With-Strong-Quarter.aspx May 15, 2013 Novelis Ends Profitable Fiscal Year With Strong Quarter Aluminum maker Novelis reported net income of $202 million for its 2013 fiscal year, which ended March 31. That figure was more than 220 percent better than the previous year’s profits for the Atlanta-based company. A strong final quarter drove the company’s performance, as it reported net income of almost $60 million, compared to a loss of $107 million during the same period last year. Novelis' net sales for the full year totaled $9.8 billion, down 11.2 percent from the previous year. Adjusted EBITDA for fiscal 2013 totaled $961 million, down 8.7 percent compared to the same period in 2012. The year-over-year decrease was mostly due to disruptions related to the ERP implementation in two North American plants in the third quarter, pricing pressures in several operating regions, lower average aluminum prices, a fire at a North American plant in the fourth quarter and higher pension expenses. "As expected, we saw a sequential recovery from our seasonally low third quarter, driven by strong demand, good cost control and higher operating efficiencies." said Phil Martens, Novelis president and CEO. "And despite multiple unexpected headwinds in the second half of the fiscal year, the company was able to achieve EBITDA of nearly $1 billion for the year. This was accomplished while commissioning two large-scale expansions, closing or divesting underperforming and non-core assets and making good progress on several ongoing global rolling, finishing and recycling expansions." Novelis’ shipments of aluminum rolled products totaled 2,786 kilotons for fiscal 2013, down slightly from last year due mostly to the sale of the company's three foil plants in Europe and production disruptions in North America. Shipments of aluminum rolled products totaled 698 kilotons for the fourth quarter of fiscal 2013, essentially flat compared to the same period last year. Wed, 15 May 2013 14:42:00 GMT f1397696-738c-4295-afcd-943feb885714:10729 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10728/MarmonKeystone-Opens-Satellite-Facility-in-Nashville.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10728 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10728&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10728/MarmonKeystone-Opens-Satellite-Facility-in-Nashville.aspx May 15, 2013 Marmon/Keystone Opens Satellite Facility in Nashville Marmon/Keystone has opened a new facility in Mount Juliet, Tenn., about 25 miles east of Nashville. Product offerings include aluminum and stainless pipe and tubing, along with cold-drawn seamless, cold-rolled electric weld, drawn over mandrel and hot-rolled seamless steel tubing. The 43,000-square-foot facility, manned by four employees, houses two 10-ton overhead cranes and two fully-automated Amada band saws. The Nashville location serves as a satellite location of Marmon/Keystone's Birmingham, Ala., branch. Birmingham Branch Manager Mike Gregory will oversee the Nashville operation. "Marmon/Keystone is increasing its presence in the southern U.S. region to better meet the needs of our existing customer base in central and western Tennessee, eastern Arkansas, southwestern Kentucky and northwestern Mississippi," Gregory says. "We also look forward to establishing new business relationships in the area." Wed, 15 May 2013 14:40:00 GMT f1397696-738c-4295-afcd-943feb885714:10728 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10727/NTS-Breaks-Ground-Outside-Houston.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10727 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10727&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10727/NTS-Breaks-Ground-Outside-Houston.aspx May 15, 2013 NTS Breaks Ground Outside Houston National Tube Supply recently broke ground on a new facility in Baytown, Texas, about 20 miles east of Houston, which will expand its presence in the mechanical tube market. The facility will include 100,000 square feet of warehouse space, 7,000 feet of office space and considerable outside storage. It will house material handling and saw cutting equipment. The company has been looking to expand into the area since 2011. "In addition to improving delivery times to our customer base in that region, it will also serve as an inbound depot for any product not available domestically that we bring in through the Port of Houston," NTS President Gary Chess says. "Houston is one of the largest mechanical tube markets in the nation, and the Baytown facility will allow us to better serve the surrounding states, which regionally represent the second largest market nationwide." NTS Baytown is the company's fourth plant. Company headquarters are in University Park, Ill., with a plant in Moreno Valley, Calif., serving the West, and a leased space in Beaver, W.V., covering the East. Wed, 15 May 2013 14:36:00 GMT f1397696-738c-4295-afcd-943feb885714:10727 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10726/Apex-Integration-Drives-Profitable-Quarter-for-Russel.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10726 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10726&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10726/Apex-Integration-Drives-Profitable-Quarter-for-Russel.aspx May 15, 2013 Apex Integration Drives Profitable Quarter for Russel Russel Metals Inc., Mississauga, Ontario, reported net earnings of $22 million during its first quarter, a 50 percent decline from the same period in 2012, but up slightly from the fourth quarter. Net sales for the quarter improved 2.3 percent to $822 million for the Canadian service center company. Sales grew by 7.5 percent from the previous quarter. "The volume decline experienced throughout the service center industry was also felt by Russel Metals," said Brian R. Hedges, president and CEO. "The drop in Canada was more severe than the U.S. and reflects the impact on the Canadian economy of the energy slowdown in Alberta for both the oil sands and conventional gas drilling activities." Following a year where Canadian steel shipments grew at twice the rate of U.S. shipments, Canadian shipments fell at double the rate of U.S. shipments in early 2013. Through four months, Canadian shipments were down 13 percent for the year. "That shows how important Alberta is to our economy," Hedges added. Revenues in the company's metals service center segment decreased 16 percent to $359 million in the first quarter, compared to the 2012 first quarter, due to lower demand levels. Gross margins improved from the 2012 fourth quarter, but were slightly lower than the same quarter last year, reflecting a leveling off of steel prices. Hedges said the sluggishness of the manufacturing sector through the first quarter caught the metals industry off guard. "If you look at the economic numbers, there shouldn’t be this overall 7 percent decline in manufacturing using steel. There’s something happening out there that wasn’t on the horizon coming into the year." Revenues in Russel's steel distributors segment decreased by 26 percent to $74 million in the first quarter due to lower demand. Operating profits for the first quarter decreased to $5 million. Revenues in the company's energy products segment increased 42 percent to $389 million compared to the 2012 first quarter, driven by the Apex Distribution acquisition. Gross margins in energy products improved from both the 2012 fourth and first quarters to 15.3 percent. "The performance of Apex Distribution was the bright spot in the first quarter and validated our strategic acquisition of this operation. Apex Distribution has maintained a more stable earnings pattern despite the slowdown in the Western Canada energy sector. One of our goals in acquiring Apex Distribution was to reduce the volatility of our energy products segment, and this was demonstrated in the first quarter," Hedges said. Still, the company is concerned over the short-term outlook for the energy industry, where pricing and gross margin pressures continue, and no meaningful pickups in demand are expected. That will change, however, "should the XL Pipeline to the Gulf be approved," Hedges said. Wed, 15 May 2013 14:27:00 GMT f1397696-738c-4295-afcd-943feb885714:10726 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10725/Olympic-Returns-to-Profitability-During-Challenging-First-Quarter.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10725 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10725&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10725/Olympic-Returns-to-Profitability-During-Challenging-First-Quarter.aspx May 15, 2013 Olympic Returns to Profitability During Challenging First Quarter Olympic Steel, Cleveland, reported net income of $5.2 million during the first quarter, a modest decline from the $6.2 million earned during the same period in 2012, but a reversal of the $10 million loss in the previous quarter. Net sales for the quarter totaled $338.1 million, down 11.5 percent compared to the record $382.1 million in the same period of 2012, but up 15.9 percent from the previous quarter. Lower steel prices combined with reduced volumes contributed to the year-over-year sales decline, the company said. "Business activity sequentially rebounded in the first quarter compared with the end of last year," said Chairman and CEO Michael D. Siegal during the company’s quarterly conference call. "Steel prices also increased from the lows of late last year; however, they are below year-ago levels and are expected to remain soft.” Olympic shipped 292,000 tons in the quarter, down 6.3 percent from last year’s first quarter. However, shipments were slightly ahead of the industry average of 6.6 percent reported by the Metals Service Center Institute. "Tubular and Pipe Products continued to perform well during the quarter, as did our new start-up ventures, which made increasingly positive contributions to consolidated profits as they continued to mature. Having essentially completed the capital outlays associated with our multi-year growth plan, we are now focused on generating higher cash flow and earnings," Siegal said. The company's inventory turn rate averaged 4.2 during the quarter, an improvement from 2012 but still short of its goal of 5 turns per year. "We continued to make further reductions in inventory during the second quarter, reflective of short mill lead times and current market conditions," said Rick Marabito, chief financial officer. Among the dispiriting conditions was the steel price, which hovered in the low $600 per ton range during the quarter, almost $100 less than the same period last year. Executives expressed little optimism about a rapid turnaround on that front. "We're uncertain about the prices going into the summer. There's just too much supply globally. It affects the steel marketplace, whether it’s in raw materials or finished product coming into this country," Siegal said. Olympic's end markets are a mixed bag, executives reported, with significant downturns in sales to the mining and defense industries, offset by some demand from construction equipment manufacturers and continued strength in automotive. "By and large, the overall demand is not the problem. It's the anticipation of what demand will be and what the price will be. The reality is probably that it's a little better than people think, but it doesn’t look like anyone has a great deal of confidence that it’s sustainable," Siegal said. Wed, 15 May 2013 14:24:00 GMT f1397696-738c-4295-afcd-943feb885714:10725 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10567/Worldsteel-Forecasts-29-Increase-in-Global-Steel-Use.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10567 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10567&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10567/Worldsteel-Forecasts-29-Increase-in-Global-Steel-Use.aspx May 1, 2013 Worldsteel Forecasts 2.9% Increase in Global Steel Use The World Steel Association forecasts that global apparent steel use will increase by 2.9 percent in 2013, according to the Brussels-based trade group’s Short Range Outlook. The increase this year will be followed by further 3.2 percent growth in 2014 to 1.5 billion metric tons. “2012 was a challenging year for the steel industry with apparent steel use increasing at the slowest rate since 2009, when demand declined by 6.5 percent. This was mainly due to the Eurozone crisis, which persisted throughout 2012 and whose impact was felt further afield. On top of this, corrective macroeconomic measures in major emerging economies also contributed to a concerted slowdown globally,” says Hans Jürgen Kerkhoff, chairman of the worldsteel Economics Committee. The key risks to the global economy in the early part of 2013—the Eurozone crisis, a hard landing for the Chinese economy and the U.S. fiscal cliff issue—have all stabilized considerably. The recovery in global demand will kick in during the second half of the year, worldsteel says, spearheaded by the emerging economies. In the U.S. this year—after growth of 8.4 percent in 2012 due to the strong automotive and energy sectors and an increasingly resilient construction recovery—apparent steel use is forecast to grow by 2.7 percent to 99.3 million tons. In 2014, U.S. steel demand is expected to increase by 2.9 percent, thus exceeding 100 million tons with the help of positive momentum from the construction sector. For NAFTA as a whole, apparent steel use will grow by 2.9 percent and 3.0 percent in 2013 and 2014, respectively, worldsteel predicts. Apparent steel use in China is expected to grow by 3.5 percent in 2013 to 668.8 million tons following a 1.9 percent increase in 2012. In 2014, steel demand is expected to grow by 2.5 percent as the Chinese government’s measures to control investment in an effort to rebalance the economy will remain in place. Wed, 01 May 2013 20:13:00 GMT f1397696-738c-4295-afcd-943feb885714:10567 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10569/People-on-the-Move.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10569 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10569&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10569/People-on-the-Move.aspx May 1, 2013 People on the Move Hamilton Lott Jr., Nucor Corp.'s executive vice president of fabricated construction products, will resign after 37 years with the Charlotte, N.C.-based steelmaker. He joined the company as a design engineer at Vulcraft in Florence, S.C., and worked a variety of positions until his promotion to executive vice president in 1999. Effective June 4, Raymond S. Napolitan Jr. will be promoted to fill Lott’s position. He has been serving as president of Nucor’s Vulcraft/Verco Group since 2010. Nick Meyer has been promoted to the newly created position of contract manager by O’Neal Steel, Birmingham, Ala. He will be responsible for ensuring compliance with commercial agreements by O’Neal and applicable customers. Additionally, Dan McAllister has joined O’Neal Flat Rolled Metals in Ogden, Utah, as operations manager. Before joining OFR Metals, McAllister worked for Autoliv as a production manager and lean consulting coordinator. Bruce Butterfield, has been promoted to director of operations for the Engineered Products Group for Chicago Tube & Iron Company, Romeoville, Ill. He is a 30-year veteran of CTI, serving most recently as general manager of the Industrial Boiler Division. Howard J. Lake has been named regional account manager for MidWest Materials, Perry, Ohio. He is a 40-year veteran of the steel industry, including serving as president of Standard Steel. Wed, 01 May 2013 15:18:00 GMT f1397696-738c-4295-afcd-943feb885714:10569 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10568/Manufacturing-Sector-Grows-for-5th-Straight-Month.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10568 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10568&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10568/Manufacturing-Sector-Grows-for-5th-Straight-Month.aspx May 1, 2013 Manufacturing Sector Grows for 5th Straight Month Economic activity in the manufacturing sector expanded in April for the fifth consecutive month as the PMI registered 50.7 percent, according to the Tempe, Ariz.-based Institute for Supply Management. The PMI declined 0.6 percentage points from March’s reading, still indicating growth but at the lowest level of the year. Of the 18 manufacturing industries reporting to ISM, 14 reported growth in April, including fabricated metal products, primary metals and miscellaneous manufacturing. In addition, ISM’s New Orders Index increased by 0.9 percentage point to 52.3 percent, while the Production Index increased by 1.3 percentage points to 53.5 percent. The Employment Index declined by 4 percentage points to 50.2 percent, however, just above the 50 percent level that indicates growth. The average PMI for January through April of 52.3 percent corresponds to a 3.2 percent increase in real GDP on an annualized basis, though April’s figure corresponds to a 2.7 percent increase, says Bradley J. Holcomb, chairman of ISM’s Manufacturing Business Survey Committee. Wed, 01 May 2013 15:17:00 GMT f1397696-738c-4295-afcd-943feb885714:10568 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10566/Republic-to-Supply-Tube-Rounds-to-US-Steel.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10566 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10566&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10566/Republic-to-Supply-Tube-Rounds-to-US-Steel.aspx May 1, 2013 Republic to Supply Tube Rounds to U.S. Steel Republic Steel has entered into a five-year agreement to supply tube rounds to U.S. Steel Corp.’s Tubular Products Division. Republic is a subsidiary of Grupo Simec S.A.B. de C.V. Republic is committed to supply 225,000 to 450,000 tons, starting in January 2014. The steel will be produced in the new electric arc furnace being installed at its Lorain, Ohio, plant. The new plant has an annual capacity of 1.2 million tons per year. It will start operations in the second half of this year. Wed, 01 May 2013 15:12:00 GMT f1397696-738c-4295-afcd-943feb885714:10566 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10565/Century-Aluminum-Reaches-Energy-Deal.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10565 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10565&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10565/Century-Aluminum-Reaches-Energy-Deal.aspx May 1, 2013 Century Aluminum Reaches Energy Deal Century Aluminum of Kentucky, Kenergy Corp. and Big Rivers Electric Corp. have reached a tentative agreement to provide power to Century’s Hawesville smelter, averting a shutdown. Under the arrangement, the electric cooperatives would purchase power on the open market and pass it through to Century at the market price. The Hawesville smelter, located in Hancock County, Ky., has a rated capacity of 244,000 tons of primary aluminum. Century had threatened to idle the facility if a more competitive energy agreement was not reached. Additionally, Century will acquire the assets of a Sebree, Ky., smelter from a subsidiary of Rio Tinto Alcan. Sebree, located in Henderson County, Ky., has an annual production capacity of 205,000 metric tons of primary aluminum. Century will acquire the smelter for $61 million in cash and will receive $71 million in working capital. As part of the transaction, Rio Tinto Alcan will retain all historical environmental liabilities of the smelter. Wed, 01 May 2013 14:57:00 GMT f1397696-738c-4295-afcd-943feb885714:10565 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10564/Alcoa-Considers-Curtailing-Smelting-Capacity.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10564 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10564&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10564/Alcoa-Considers-Curtailing-Smelting-Capacity.aspx May 1, 2013 Alcoa Considers Curtailing Smelting Capacity Aluminum producer Alcoa will review 460,000 metric tons of smelting capacity over the next 15 months for possible curtailment to maintain the company’s competitiveness, as aluminum prices have fallen more than 33 percent since their peak in 2011. The review will include facilities across the Alcoa system and will focus on higher-cost plants and those that have long-term risk due to factors such as energy costs or regulatory uncertainty. The possible curtailments could affect 11 percent of Alcoa’s global smelting capacity. Currently, the company has 13 percent, or 568,000 metric tons of smelting capacity, idle. “Because of persistent weakness in global aluminum prices, we need to review every option to maintain Alcoa’s competitiveness,” says Chris Ayers, president of Alcoa’s Global Primary Products. “Any action taken will only be done after a thorough strategic review and consultations with stakeholders.” Wed, 01 May 2013 14:56:00 GMT f1397696-738c-4295-afcd-943feb885714:10564 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10563/US-Steel-Locks-Out-Lake-Erie-Works-Employees.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10563 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10563&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10563/US-Steel-Locks-Out-Lake-Erie-Works-Employees.aspx May 1, 2013 U.S. Steel Locks Out Lake Erie Works Employees U.S. Steel Co., Pittsburgh, locked out approximately 1,000 employees at its Nanticoke, Ontario, Lake Erie Works facility at the end of April. The steelmaker initiated the action after the United Steelworkers representing employees at the Canadian facility rejected what the company claimed was its final offer. The lockout follows the idling of the company’s Hamilton Works facility at the end of January as a result of lower demand for steel products. “We’re still 10 percent or so below where 2007 or some pre-recession number would be. We just haven’t had the right combination of factors. We would love to still make it in Hamilton, but we’ve got to find a way to do that in Nanticoke at the same time,” said Executive Vice President and CFO Gretchen Hagerty during the company’s quarterly conference call. Wed, 01 May 2013 14:54:00 GMT f1397696-738c-4295-afcd-943feb885714:10563 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10562/Castle-Posts-Another-Loss-as-Restructuring-Continues.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10562 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10562&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10562/Castle-Posts-Another-Loss-as-Restructuring-Continues.aspx May 1, 2013 Castle Posts Another Loss as Restructuring Continues A.M. Castle & Co., Oak Brook, Ill., reported a net loss of $10.6 million during its first quarter, a bigger loss than the $4.3 million in last year’s first quarter and the $5.6 million lost in the previous quarter. Castle’s net sales totaled $292.7 million, down 19.3 percent from first-quarter 2012, but 6.8 percent better than the previous quarter. “The markets were a bit softer than we had anticipated during the first quarter,” said Scott Dolan, president and CEO. In the company’s Metals segment, first-quarter net sales of $258.4 million were 19.6 percent lower, on a per-day basis, than last year, but 6.6 percent higher than the fourth quarter of 2012. Metals segment tons sold per day were down 20.0 percent, as virtually all of the company's key end-use markets experienced softer demand due to weaker conditions in the overall economy compared to first-quarter 2012, the company said. In addition to reduced costs associated with lower sales volumes, restructuring activities announced in January began to positively affect the company’s cost levels in the first quarter. “Although the first quarter was challenging from a top-line sales and gross material margin perspective, we proceeded as planned with our restructuring efforts and made significant progress toward our goals to improve our operating efficiency, improve customer satisfaction and reduce our costs. The plant consolidation activities are ahead of schedule and the restructuring charges for the first quarter are in line with budget,” Dolan said. The company continued to focus on inventory reduction efforts during the first quarter. Inventory levels declined by over $33 million, on a replacement cost basis, which resulted in positive cash generated from operations of $32.6 million for the quarter, officials said. “Our team remains focused on transforming A.M. Castle into a more profitable enterprise, a company that can grow and succeed as our key end-use markets recover,” said Dolan, who is taking over direct responsibility of the company’s commercial teams. Blain Tiffany, who had been Castle’s chief commercial officer, is leaving the company. “Although we are cautious about the market outlook near-term, we are optimistic about our ability to generate significant operating cash flow this quarter, and about our long-term opportunities to build on the improvements of the past several quarters,” Dolan said. Wed, 01 May 2013 14:51:00 GMT f1397696-738c-4295-afcd-943feb885714:10562 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10570/Despite-Headwinds-Reliance-Has-Profitable-Quarter.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10570 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10570&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10570/Despite-Headwinds-Reliance-Has-Profitable-Quarter.aspx May 1, 2013 Despite Headwinds, Reliance Has Profitable Quarter Reliance Steel & Aluminum Co., Los Angeles, reported net income of $83.7 million in the first quarter, down 28.0 percent from the same period in 2012, but up modestly from the $80.4 million in the previous quarter. First-quarter sales totaled $2.03 billion, down 11.5 percent from the same period a year ago, but up 7.2 percent from the fourth quarter. “Our first-quarter results reflected some seasonal improvement in demand relative to the fourth quarter of 2012, although pricing weakened during that period, which is not typical,” said David H. Hannah, chairman and CEO, during the company’s quarterly conference call with analysts and investors. “We continue to be pleased with the strong operational execution by our managers in the field, as demonstrated by our solid year-over-year increase in gross profit margins during an environment of lower demand and weaker pricing.” While tons sold for the quarter improved 9 percent, pricing weakened by 1.3 percent, compared to the prior quarter. Compared to the prior-year period, tons sold were down 6.9 percent and the average selling price was off 7.7 percent. Reliance officials expressed optimism about one of the more downtrodden markets, nonresidential construction. The company’s regional service center managers report significant growth. “They are certainly more upbeat than they have been since about the fourth quarter of 2008,” said President and Chief Operating Officer Gregg Mollins. During the quarter, Reliance completed the acquisition of Metals USA. Reliance has already begun incorporating Metals USA into the fold, though it will take time. Metals USA is at roughly 3.5 inventory turns per year, well below Reliance’s goal of five per year. “We think there will be improvement there over time. Inventory turns just can't click on in a heartbeat. But we expect that will take one and a half to two years to get to that point,” said Mollins. Though Metals USA represents Reliance’s biggest acquisition, the nation’s largest service center remains open to further deals. “There isn't a lot of opportunity out there at the moment. There are a couple of smaller tuck-in type deals that could be possible, but we would like to pay down some debt before we tackle anything big. If something comes up, we're in a fine position from a balance sheet perspective to get done any deal we believe is a great opportunity for the company long-term,” Hannah said. Wed, 01 May 2013 14:15:00 GMT f1397696-738c-4295-afcd-943feb885714:10570 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10410/AISI-Obama-Budget-Promising-But-Action-Needed.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10410 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10410&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10410/AISI-Obama-Budget-Promising-But-Action-Needed.aspx April 17, 2013 AISI: Obama Budget Promising, But Action Needed The American Iron and Steel Institute praised some parts of President Obama’s Fiscal Year 2014 Budget, though satisfaction will rest on its implementation. The proposed budget includes new initiatives on energy security, infrastructure investment and American manufacturing, all of which are top priorities of the steel industry. Thomas J. Gibson, president and CEO of the Washington-based AISI, says the commitment to these areas by the administration “sounds promising, but we need actual action by Congress and the administration on policies that promote a pro-manufacturing agenda.” “Given the fiscal constraints currently facing our country, it is imperative that the federal budget strike a balance between eliminating unnecessary discretionary spending, reforming our unsustainable mandatory spending programs and continuing a necessary level of investment, all the while ensuring job creators are not stymied by unnecessary tax increases or burdensome regulations,” Gibson says. AISI has concerns that some of the tax provisions included in the president’s budget could ultimately cause a net tax increase on manufacturers. For example, provisions to eliminate fossil fuel tax preferences, like percentage depletion and intangible drilling costs, are important to the steel industry and many of its suppliers and customers. Eliminating them could trigger a negative economic impact, the association claims. “While we are still assessing how all of the tax proposals in the president’s budget would ultimately impact manufacturers, for any rewrite of the tax code to produce real economic growth and job creation it cannot simply be a statutory rate reduction that results in an increase in the effective tax rate on manufacturing and triggers a redistribution of wealth from manufacturers to other sectors of the economy,” Gibson adds. He notes that AISI continues to review the specifics of the budget proposal; however, he said the infrastructure and energy aspects are also crucial to the steel industry. He lauded the proposed $50 billion for upfront infrastructure investments, including $40 billion for “Fix It First” projects, to invest immediately in repairing highways, bridges, transit systems and airports nationwide. “Implementing a long-term, sustainable transportation plan has the possibility of putting thousands of Americans back to work, while improving the safety of our transportation infrastructure. The Department of Transportation last year reported that every $1 billion of federal public transportation funding that is similarly matched supports nearly 37,500 jobs,” he says. AISI also supports the president’s proposed investments in manufacturing R&D and the production of domestic natural gas. Wed, 17 Apr 2013 20:21:00 GMT f1397696-738c-4295-afcd-943feb885714:10410 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10412/Century-Aluminum-to-Close-Kentucky-Smelter.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10412 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10412&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10412/Century-Aluminum-to-Close-Kentucky-Smelter.aspx April 17, 2013 Century Aluminum to Close Kentucky Smelter? Century Aluminum has issued a warning to employees of its Hawesville, Ky., smelter of its intent to curtail all of its plant operations by mid-August if the facility cannot secure a better power contract. The company also gave conditional notice to end its supply contract with its largest customer, the Southwire Co. The notice specifies that the plant will close unless the company can gain access to competitively priced electric power. If not, Century Aluminum of Kentucky will curtail 100 percent of smelter operations on Aug. 20, when its current power contract with Big Rivers Electric Corp. expires. "Hawesville is an excellent plant, with a dedicated and highly skilled workforce and a world class customer base," says Michael Bless, president and CEO. "We deeply regret the need to issue these notices at this time, and understand the uncertainty this action will cause our valued employees, our local communities and our longstanding partners at Southwire. We remain resolved to finding a solution that will support the plant's continuing operations, and are discussing with the power provider an arrangement that we firmly believe will have no impact on any other ratepayer in the state, today or in the future.” The Hawesville smelter, located in Hancock County, has a rated capacity of 244,000 metric tons of primary aluminum and employs approximately 750 people. Wed, 17 Apr 2013 14:24:00 GMT f1397696-738c-4295-afcd-943feb885714:10412 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10411/Planned-Steel-Mill-in-Arkansas-Gets-125-Million-from-State.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10411 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10411&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10411/Planned-Steel-Mill-in-Arkansas-Gets-125-Million-from-State.aspx April 17, 2013 Planned Steel Mill in Arkansas Gets $125 Million from State The Arkansas legislature has approved $125 million in tax incentives for the proposed Big River Steel facility in the northeastern part of the state. Big River Steel is headed up by former Nucor executive John Correnti, who was instrumental in the launch of the Severstal facility in Mississippi. The planned 1.7-million-ton facility, to be located in Osceola, will produce flat-rolled and HSLA steel for automotive, oil and gas, and other markets. The site is located on the Mississippi River and has rail access. Construction on the $1.1 billion project is expected to begin in late summer, and may take up to 20 months to complete. More than 2,000 workers will be employed during the construction process, and the company will employ 500 once the facility is operational. Wed, 17 Apr 2013 14:23:00 GMT f1397696-738c-4295-afcd-943feb885714:10411 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10409/AIIS-Asks-Congress-to-Clear-Path-for-Needed-Dredging.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10409 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10409&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10409/AIIS-Asks-Congress-to-Clear-Path-for-Needed-Dredging.aspx April 17, 2013 AIIS Asks Congress to Clear Path for Needed Dredging The American Institute for International Steel, Falls Church, Va., is urging Congress to pass the Water Resources Development Act. AISI is particularly interested in the provision allowing the full expenditure of funds collected under the Harbor Maintenance Fee for the purpose it was intended—dredging and maintaining the country’s blue and brown water ports. “AIIS is encouraged by the supportive, bi-partisan tone at Senator Boxer’s committee hearing about the full expenditure of HMF collections for dredging and the growing support in both the House and the Senate. We believe it is now time for Congress to act, as dredging had been underfunded for so long that over $7 billion has built up in the HMF Trust Fund. The year-after-year underfunding of this critical task of the federal government has significant costs for our economy and it is time for the government to spend the money for the purpose for which it was collected,” says John Foster, chairman of AIIS. “Every time a vessel’s draft is decreased by one foot due to inadequate dredging, shippers have to bear an additional $1 million in costs. In a recovering economy such as ours, this type of unnecessary cost burden will negatively affect job creation and manufacturing productivity. This is a serious problem as described in an analysis by the Corps of Engineers,” says Kevin Castagnola, chairman of AIIS’s Ports Committee and CEO of the South Jersey Port. The Corps of Engineers says fully authorized channel dimensions are available less than 35 percent of the time at 59 of the highest-use harbors in the U.S. Wed, 17 Apr 2013 14:20:00 GMT f1397696-738c-4295-afcd-943feb885714:10409 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10408/Service-Center-Shipments-Continue-to-Lag.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10408 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10408&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10408/Service-Center-Shipments-Continue-to-Lag.aspx April 17, 2013 Service Center Shipments Continue to Lag Service center shipments of metal products in March continued to lag the 2012 pace in both the United States and Canada, according to the latest Metals Activity Report from the Metals Service Center Institute, Rolling Meadows, Ill. U.S. service centers mostly held the line on inventories, with Canadian distributors shedding stocks. U.S. service centers shipped 3.4 million tons of steel products in March, a decrease of 9.9 percent from the previous year. For the year to date, shipments totaled approximately 10.4 million tons, down 6.6 percent compared to 2012. U.S. steel product inventories totaled 8.5 million tons at the end of March, a decrease of 4.2 percent from a year ago, and a decrease of 0.2 percent from February. At March shipping rates, that represented 2.5 months of supply, an increase of 8.6 percent from 2012. U.S. service centers shipped 116,900 tons of aluminum products in March, a decrease of 13.8 percent from 2012. Year-to-date aluminum shipments totaled 357,300 tons, a decrease of 10.5 percent from the same period last year. U.S. inventories of aluminum products totaled 362,400 tons at the end of March, a decrease of 3.1 percent from 2012, and down 0.1 percent from the previous month. At March shipping rates, that represented 3.1 months of supply, an increase of 10.7 percent from 2012. Canadian service centers shipped 472,200 tons of steel products in March, down 18.0 percent from the same month last year. For the year to date, steel shipments totaled 1.5 million tons, down 13.1 percent. Canadian steel product inventories totaled 1.7 million tons at the end of March, an increase of 1.1 percent from 2012, and a decrease of 2.2 percent from the previous month. At March shipping rates, that represented 3.7 months of supply, an increase of 23.3 percent from 2012. Canadian service centers shipped 12,900 tons of aluminum products in March, a decrease of 10.2 percent from the same month last year. Year-to-date aluminum shipments totaled 38,300 tons, a decrease of 8.4 percent. Canadian inventories of aluminum products totaled 37,800 tons at the end of March, an increase of 7.2 percent from 2012, but a decrease of 0.1 percent from the previous month. At March shipping rates, that represented 2.9 months of supply, an increase of 16.0 percent from a year ago. Wed, 17 Apr 2013 14:18:00 GMT f1397696-738c-4295-afcd-943feb885714:10408 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10407/Alcoa-Reports-Profitable-First-Quarter.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10407 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10407&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10407/Alcoa-Reports-Profitable-First-Quarter.aspx April 17, 2013 Alcoa Reports Profitable First Quarter New York-based Alcoa reported net income of $149 million during the company’s first quarter, a 62.0 percent increase from the same quarter in 2012, but down 62.4 percent from the previous quarter. First-quarter 2013 revenue totaled $5.8 billion, a decrease of 1.0 percent from fourth-quarter 2012 due to fewer production days in the first quarter. The revenue figure is also 3.0 percent less than in the first quarter last year, largely on lower London Metal Exchange aluminum prices and the impact of curtailments in Alcoa’s European primary metals production. “This was a strong quarter led by record profitability in our downstream business, improved results in our midstream business, and remarkable upstream performance in the face of weak metal prices,” said Klaus Kleinfeld, Alcoa chairman and CEO, during the company’s quarterly call with investors and analysts. “We achieved these results by focusing on the things we can control and by pressing Alcoa’s innovation edge, scale and strength in end markets.” Kleinfeld said the company’s performance has been driven by a dramatic change in Alcoa’s product mix. In 2003, 75 percent of its operating income was delivered by its Global Primary Products business. In 2012, only 29 percent of its income was generated by primary products, while the remaining 71 percent was provided by its value-added Global Rolled Products and Engineered Products segments. After-tax operating income in the Global Rolled Products segment totaled $81 million during the quarter, up from $77 million in the fourth quarter, but down from the $102 million in the same quarter of last year. Sequentially, favorable productivity and strong demand from the aerospace and automotive markets were mostly offset by weaker pricing and higher costs. First-quarter operating income in the Engineered Products and Solutions segment totaled $173 million, up from $140 million in the previous quarter, a 24 percent improvement, and up from $157 million during the same quarter of 2012. Favorable productivity and higher volumes in the aerospace businesses drove the record profitability for the segment. The company continues to benefit from share gain increases in all markets due to its innovation, officials claim. Alcoa continues to project 7 percent global aluminum demand growth in 2013, and balanced alumina and aluminum markets. The company projects global growth this year in aerospace, 9-10 percent; automotive, 1-4 percent; commercial transportation, 2-7 percent; packaging, 2-3 percent; building and construction, 4-5 percent; and industrial gas turbine, 3-5 percent. Wed, 17 Apr 2013 14:15:00 GMT f1397696-738c-4295-afcd-943feb885714:10407 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10406/Timken-Officials-Make-Case-to-Keep-Steel-Business.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10406 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10406&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10406/Timken-Officials-Make-Case-to-Keep-Steel-Business.aspx April 17, 2013 Timken Officials Make Case to Keep Steel Business Officials of the Timken Company, Canton, Ohio, are urging shareholders to reject a proposal to spin off the steel business from the company. Members of Timken’s board have met with the California State Teachers' Retirement System and Relational Investors, major shareholders, to discuss what Timken claims are flaws in their analysis. "As we have in the past, we outlined for CalSTRS and Relational Investors the benefits of our integrated platform and comprehensive strategic plan to drive value for shareholders, as well as the flaws in the analysis of a spin-off of our steel business," says James W. Griffith, Timken president and CEO. "It is clear to us that our proven business model and strategy to create shareholder value represent the best path forward for all Timken shareholders." In a letter to shareholders, Timken says it has transformed the company into a global industrial technology leader. “The success of this effort leverages strengths across the Timken Company's businesses, including shared research and technical expertise and supply chain and operating efficiencies between our Steel business and our Bearing and Power Transmission business, to deliver solutions across common end markets and customers. A separation of Timken Steel from the rest of the enterprise would compromise the company's competitive advantage and our ability to leverage these benefits to deliver higher financial returns.” Timken claims the proposal overinflates the value of the two separate businesses, while understating the losses in pre-tax earnings. Timken claims the company would lose $60 million to $80 million in annual pre-tax earnings, compared to the $25 million claimed in the proposal. “In summary, once the flaws in Relational's analysis are corrected, it is clear that the company's proven business model and strategy to create shareholder value represent the best path forward for all of the company's shareholders,” stated the letter. The vote of shareholders will be announced at the company’s May 7 annual meeting. Wed, 17 Apr 2013 14:08:00 GMT f1397696-738c-4295-afcd-943feb885714:10406 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10405/Armor-Plate-Back-Among-Materials-DoD-Must-Source-Domestically.aspx#Comments 0 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2524&ModuleID=13831&ArticleID=10405 http://www.metalcenternews.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=10405&PortalID=51&TabID=2524 http://www.metalcenternews.com/Editorial/CurrentIssue/CurrentNews/tabid/2524/articleType/ArticleView/articleId/10405/Armor-Plate-Back-Among-Materials-DoD-Must-Source-Domestically.aspx April 17, 2013 Armor Plate Back Among Materials DoD Must Source Domestically The domestic steel industry has received a boost from the Department of Defense with the reinstatement of a rule requiring certain steels bound for military use to be made in the United States. The new rule covers armor plate. DoD regulations specify that materials procured for defense, like those used in the construction of tanks, armored vehicles and other military equipment must be 100 percent made in America. Quenched and tempered material had been excluded from that rule since 2009, however. The decision to source quenched and tempered plate in the U.S. was applauded by several steel supply chain executives. “ArcelorMittal is proud to support the defense efforts of the United States through our production of steel armor plate, and we commend the Department of Defense for its decision to help ensure a vibrant industrial base in the years to come,” says John Mengel, chief operating officer, ArcelorMittal USA Plate. “The actions support the U.S. steel industry, U.S. jobs market and U.S. national security. Our great steel mills have the capacity to make the steel and our workforce has the skill to produce the product,” says Brian Robbins, CEO of Perry, Ohio-based MidWest Materials and executive vice president of the National Association of Steel Distributors. “This is a step in the right direction to support the domestic steel industry and American manufacturing.” Wed, 17 Apr 2013 14:07:00 GMT f1397696-738c-4295-afcd-943feb885714:10405