Metal Management reports increase in net income.

Metal Management Inc., Chicago, has announced its financials for the third quarter ended Dec. 31.

The company generated consolidated net sales of $524 million in the third quarter and net income of $15.6 million. According to Metal Management, this is an increase of 33 percent compared to consolidated net sales of $395 million during the same quarter of the previous year.

Metal Management reports that it processed and sold or brokered roughly 1.4 million tons of metal, including ferrous yard shipments of about 1.2 million tons and nonferrous shipments of about 127 million pounds, during the quarter. The company says it turned ferrous inventories approximately 11 times and nonferrous inventories (excluding stainless and alloy) approximately 15 times.

For the first three quarters of the year, Metal Management reported consolidated net sales of $1.6 billion, an increase of 39 percent compared to consolidated net sales of $1.2 billion for same time the previous year. The company's net income was $89.5 million for the nine months ended Dec. 31, 2006, compared to $37.7 million for the nine months ended Dec. 31, 2005.

"The men and women of Metal Management performed admirably in our third fiscal quarter in the face of sluggish domestic ferrous market conditions, as many consumers adjusted inventory levels toward the end of the calendar year," Daniel Dienst, chairman and CEO of Metal Management, says. "We responded quickly by leveraging our transportation and logistics capabilities to take advantage of opportunities outside the United States."

Dienst also says that Metal Management is pleased to report strong volume and near record revenue during a part of the calendar year that is historically known to be seasonally slow.

He continues, "Nonetheless, the weaker pricing environment for ferrous scrap and the prices we realized in export sales after freight compressed margins on ferrous products."

Dienst says that Metal Management's nonferrous operations did well during the third quarter, despite slower stainless steel mill consumption in the United States and declining copper prices. "Nonferrous metal recoveries and contributions to sales and profit from our induction sorting systems remained strong during our third fiscal quarter," he says.

"We are pleased to report that demand for ferrous scrap and ferrous scrap pricing in the U.S. have improved significantly since the turn of the calendar year, and international demand for ferrous scrap remains robust," Dienst says. "We're optimistic that with the dedication and focus of Metal Management's outstanding employees, we'll deliver a strong finish to our fiscal year in March."