PSC CONTINUES ACQUISITION PATTERN
PSC Metals Inc., headquartered in Mayfield, Ohio, has purchased Causey Enterprises LLC, a scrap recycler located in Bowling Green, Ky., and Knoxville Recycling Co., in South Knoxville, Tenn.
Causey Enterprises processes ferrous and nonferrous metals. Knoxville Recycling purchases ferrous and nonferrous scrap metal, operating on a 15-acre site.
Throughout the past year, PSC has made a number of moves in an effort to strengthen its position in the Southeast United States, including refurbishing the former M. Cohen barge dock in Nashville and acquiring Gadsden Iron and Metal in Gadsden, Ala.
With the Causey acquisition, PSC Metals says it now has a feeder yard in Kentucky that will allow it to improve its service in the Ohio Valley area, which includes Kentucky and Tennessee.
PSC expects to introduce transportation equipment to its new Greenfield site in Bowling Green so it can expand its industrial scrap services. The company also announced that Kelly Baker was appointed manager of the Bowling Green facility.
As a result of the Knoxville Recycling purchase, PSC Metals’ Tom McKelvy says the company will further its ability to support Ameristeel and serve more customers in the Greater Knoxville area. The purchase will also drive more business to a shredder PSC Metals already operates in Knoxville, he says.
McKelvy says PSC Metals plans to add a warehouse on the Knoxville Recycling site that will be used for nonferrous materials.
METAL MANAGEMENT’S EARNINGS DIP
Metal Management Inc., Chicago, has announced results for its first fiscal quarter ended June 30, 2005.
The company generated consolidated net sales of $382 million in the first quarter of fiscal 2006 and net income of $5.4 million.
The consolidated net sales of $382 million for the quarter ended June 30, 2005, represents an increase of 4 percent over net sales of $367 million for the quarter ended June 30, 2004. But the net income of $5.4 million compares to $12.5 million for the quarter ended June 30, 2004.
During its first quarter, Metal Management processed, sold or brokered approximately 1.2 million tons of metal, including ferrous yard shipments of approximately 1.1 million tons and nonferrous shipments of approximately 120 million pounds.
Daniel Dienst, chairman, CEO and president of Metal Management says, "Our business was tested in the first quarter and maintaining profitability in the face of ferrous and nickel markets that declined precipitously is a testament to our franchise and the hard work of our 1,600 employees across the country."
The company notes that weakness in the ferrous markets during the first half of the 2005 calendar was considerable in terms of percentage and in absolute dollar declines in unit pricing. These price changes significantly reduced the spreads that Metal Management was able to realize.
TUBE CITY AND AK STEEL INK SCRAP DEAL
AK Steel has entered into an agency agreement with Tube City LLC to purchase ferrous scrap for all of AK Steel’s steelmaking facilities.
As part of the agreement, Tube City will be responsible for negotiating the majority of carbon scrap and pig iron purchases for AK Steel plants in Ashland, Ky.; Butler, Pa.; and Mansfield and Middletown, Ohio. Additionally, Tube City will be responsible for ferrous scrap scheduling, logistics and quality assurance for AK Steel plants.
"This agreement with Tube City continues AK Steel’s efforts to develop long-term agreements with suppliers of key raw materials," James Wainscott, president and CEO of AK Steel, says. "We look forward to working with Tube City as a strategic partner to help us improve costs, quality and reliability as related to our scrap requirements."
Tube City is a long-time supplier of scrap and related services to AK Steel. It is a subsidiary of Horsham, Pa.-based Tube City IMS Corp., which operates at 64 mill facilities in the United States, Canada and Europe.
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