Scrap metal recycler Metal Management Inc., Chicago, reported that profits declined 48% during the third quarter of 2006 from the year-earlier period. The company posted a profit of $15.3 million, or 60 cents per share, compared with $29.5 million, or $1.19 per share, in third-quarter 2005. The company attributed the profit loss to volatile prices in the United States and declining export volume.
Net sales for the quarter were also down 11.8% from $447.6 million last year to $395 million in the most-recent quarter.
Despite struggling, company Chairman, CEO and President Daniel Dienst remains optimistic.
"Metal Management delivered strong results in the third quarter despite challenging ferrous market conditions evidenced by a volatile pricing environment in the U.S. and weak international demand," he said in a Feb. 2 statement. "The company's ongoing financial and operational success is attributable to the focus and commitment of our 1,600 employees across the country. We are proud to have now generated 16 quarters of positive pre-tax income."
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