Metals USA, one of the top steel service centers in North America, announced Monday its operating results for the third quarter ended September 30, 2009. The firm reported that while its earnings for the quarter reflected a net loss, its profitability improved compared to the previous quarter due to successful cost cutting efforts.
Sales revenues for the third quarter were $255.4 million compared to $617.7 million of sales revenues for the same period last year. Adjusted EBITDA was $19.7 million for the third quarter compared to third quarter 2008 Adjusted EBITDA of $90.1 million. Third quarter 2009 net loss was $1.8 million compared to net income of $36.0 million for the same period last year.
Lourenco Goncalves, the Company's chairman, president and CEO stated: "We are pleased with the sequential improvement in our profitability, which is a direct consequence of the aggressive cost cutting initiatives we have implemented. Working capital continues to be a source of cash, and our balance sheet has been significantly improved." Mr. Goncalves concluded: "We continue to work out of a much smaller inventory, and have no plans to change that as we stand prepared to benefit from the market rebound when it occurs."
Metals USA provides a wide range of products and services in the heavy carbon steel, flat rolled steel, non-ferrous metals, and building products markets.