Metals USA reports second quarter earnings

Metals USA reports second quarter earnings

Metals USA Inc., a Houston, Texas company that specializes in metals processing and distribution, reported its net sales rose slightly less than 10 percent due to price declines in May and June and rising cost of inventory. Net sales rose to $426.8 million for the second quarter 2005, a year-on-year increase of $43.2 million. Year-to-date net sales were reported as $854.4million, an 18 percent increase from same period in 2004. Net income was reported as $14.3 million, or $0.68 per diluted share, compared to $38.7 million, or $0.89 per diluted share, for the second quarter 2004. Year-to-date 2005 net income was $31.6 million while year-to-date 2004 net income was $52.2 million. C. Lourenco Goncalves, President and CEO, said, "Price declines in May and June have placed service center margins under near-term pressure. Under this scenario, Metals USA reduced our inventories by $55.8 million and total debt by $70.5 million during the quarter, while preserving our profitability." Commenting on Metals USA’s second half outlook, Mr. Goncalves said, "We expect a rebound in activity and prices during the second half of the year." Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, specialty metals, and building products markets.