Metalico reports 2009 results
Metalico Inc., a holding company with operations in ferrous and non-ferrous scrap metal recycling and fabrication of lead-based products Thursday reported its results for year and quarter end December 31, 2009. The Company operates twenty-four recycling facilities in New York, Pennsylvania, Ohio, West Virginia, New Jersey, Texas, and Mississippi and four lead fabrication plants in Alabama, Illinois, and California.
Net loss for the year ended December 31, 2009 was $3.4 million or $0.08 per share on a diluted basis on sales of $291.7 million. These results compare to a net loss of $43.7 million or $1.25 per share on a diluted basis on sales of $818.2 million for the year ended December 31, 2008.
Sales decreased by $526.5 million or -64 percent from the Company's 2008 results. But operating income for 2009 rose to $13.7 million as compared to an operating loss of $40.0 million for the prior year.
The Company's scrap segment generated operating income of $12.9 million for 2009 and the lead fabrication segment had operating income of $2.7 million. In 2008, the scrap segment reported an operating loss of $24.6 million and the lead fabrication segment showed an operating loss of $12.2 million. Corporate and other eliminations were responsible for the rest of the Company's 2008 operating losses.
In the fourth quarter, sales increased by +31 percent to $84.6 million. Net loss was $6.0 million, compared to a net loss of $67.5 million during the same period in 2008. The Company's operating income was $3.0 million, compared to an operating loss of $89.9 million in the fourth quarter of the previous year.
"Fourth Quarter operating income was negatively impacted by buying prices rising more rapidly than selling prices and by the mix and quantity of metals sold," said Carlos E. Agüero, Metalico's President and Chief Executive Officer. "The Company generated higher than anticipated PGM sales in the fourth quarter which normally carry a lower gross margin than ferrous scrap sales. Ferrous volumes and price were negatively affected by year-end seasonal factors.
"However, with plenty of inventory on hand at the beginning of 2010, we are well poised to benefit from robust demand from domestic consumers and sharply higher ferrous and non-ferrous commodity prices."
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