Fort Lauderdale, Florida-based metals service center Metals USA announced Monday results for the three and six month periods ended June 30, 2012. Net income in Q2 slipped to 19 million, compared to $21.5 million in Q2 2011, but net sales of $537.1 million reflecting a 6 percent increase compaed to $505.6 billion in the same quarter last year.
Meanwhile, net sales for the first six months of 2012 were $1.06 billion, up 13 percent from net sales of $937.9 million for the first six months of 2011. Net income for the first six months of 2012 was $35.3 million, compared to net income of $33.9 million for the first six months of 2011.
Lourenco Goncalves, Chairman, President and CEO of Metals USA, commented that "several steel mills have announced price increases at the outset of Q3, but end users continue to be skeptical regarding the ultimate direction prices will go. We expect our customers' purchasing behavior to be similar to their Q2 behavior, and have positioned our inventory accordingly. Consequently, we expect a decrease in both working capital and net debt during the third quarter."
Shipments over Q2 were 413,660 tons, a 15 percent year-on-year increase, while shipments for the first six months of 2012 climbed 12 percent. Toll processed tonnage was 52,470 tons during Q2 2012, compared to 42,077 tons for Q1 2011.