Fort Lauderdale, Florida based metals service center Metals USA Holdings Corp. reported Monday that net income of $21.5 million in Q2 2011 was up significantly from net income of $12.4 million in Q1, and jumped more than eightfold of $2.5 million in Q2 2010.
The swell in net income was due a 51 percent increase in net sales to $505.6 million from Q2 2010 net sales of $335 million and Q1 2011 sales of $432.3 million. Sales in the flat-rolled and non-ferrous sector saw the most growth, totaling $277.5 million in Q2 2011 compared to $177 million in Q2 20101. Sales for plates and shapes also saw dramatic growth in Q2 as sales were $206.6 million compared to $136.5 million in the prior year second quarter. Sales for building products were rose as well, but the year-on-year increase was drastically lower compared with other segments. Building product sales were $25.2 million in Q2 2011, compared to $24.3 million in Q2 2010.
Looking forward, Lourenco Gonvalves, Chairman, President and CEO of Metals USA was confident, commenting, "A favorable steel price environment in the third quarter, supported by higher prices for iron ore, coking coal and scrap, should translate into strong margins for our business. We believe that the size and quality of our inventory are appropriate, and will allow Metals USA to continue to deliver solid results in the third quarter."