IMCO RECYCLING'S THIRD QUARTER NET EARNINGS INCREASED 41 PERCENT
IRVING, Texas, Oct. 28 /PRNewswire/ -- IMCO Recycling Inc. (NYSE: IMR) today said its third quarter 1992 net earnings rose 41 percent from those of the same quarter last year on a 25 percent increase in processing volume.
The company's net earnings in the third quarter were $1,951,000 or $.17 per common share on revenues of $15,347,000. These results compare with net earnings of $1,384,000 or $.13 per share on revenues of $11,925,000 in the third quarter of 1991.
Ralph L. Cheek, chairman and chief executive officer, said IMCO Recycling's improved performance "is due to the increase in volume and the resulting high operating rate at our plants. In addition, Interamerican Zinc, Inc., which we acquired in early 1992, contributed to the quarter's earnings total."
Cheek said the company's improved volume "resulted from an increase in U.S. aluminum can recycling, to greater industry production of can stock, and from our success in earning a greater share of business from can stock producers."
IMCO Recycling's net earnings in the first nine months of 1992 totaled $5,742,000 or $.52 per share on revenues of $46,375,000, up 33 percent from earnings of $4,302,000 or $.40 per share on revenues of $38,995,000 in the first nine months of 1991. Both third quarter and nine-month earnings per share results were affected by a greater number of shares outstanding. The company sold 500,000 new shares in a public stock offering in July.
Construction of a new plant the company is building in Ohio "is on schedule" Cheek said, "and we expect to pour our first metal in December." This plant, located in Uhrichsville, Ohio, will supply recycled aluminum to an adjacent rolling mill owned by Barmet Aluminum Corporation. When fully completed in mid-1993, it will increase IMCO Recycling's aluminum capacity by 50 percent.
The company's third quarter processing volume of 141.4 million pounds was 25 percent above the 113.1 million pounds processed in the same period a year ago. The amount of material processed in the first nine months of the year increased 25 percent to 427.3 million pounds, a record for the period.
Tolling activity, which involves the recycling of customer-owned material for a processing fee, accounted for 95 percent of processing volume in the first nine months of 1992 compared with 90 percent of processing volume in the first nine months of 1991.
IMCO Recycling Inc. is the world's largest independent recycler of aluminum beverage cans, scrap and dross and it also recycles magnesium and zinc. The company is an important part of the growing resource recovery industry and is the only publicly owned firm whose activities are concentrated in the aluminum recycling market. Its production facilities are located in Morgantown, Ky; Rockwood, Tenn.; Sapulpa, Okla.; and Adrian, Mich.
IMCO RECYCLING INC. AND SUBSIDIARIES
Consolidated Results of Operations
(Unaudited, dollars in thousands, except per share data)
Periods ended Three months Nine months
Sept. 30 1992 1991 1992 1991
Revenues $15,347 $11,925 $46,375 $38,995
Cost of sales 11,096 8,708 33,041 28,967
Gross profit 4,251 3,217 13,334 10,028
SG&A expenses 1,582 1,502 5,070 4,114
Interest expense 275 284 919 915
Interest income (139) (132) (311) (386)
Total 1,718 1,654 5,678 4,643
income taxes 2,533 1,563 7,656 5,385
income taxes 582 179 1,914 1,083
Net earnings $1,951 $1,384 $5,742 $4,302
Net earnings per
common share $ 0.17 $ 0.13 $ 0.52 $ 0.40
common and common
outstanding 11,372,208 10,835,885 11,101,978 10,828,358
/CONTACT: Paul V. Dufour of IMCO Recycling Inc., 214-869-6575/
(IMR) CO: IMCO Recycling Inc. ST: Texas IN: SU: ERN TS -- NY021 -- 5818 10/28/92 09:15 EST