Toronto, Ontario-based steel service center reported Tuesday Q3 2012 net income of $23 million, down from $26 million in Q3 2011. Year-to-date earnings also fell, dropping from $90 million in the first nine months of 2011 to $78 million for the January-September 2012 period.
Revenues in the metals service center segment decreased 2 percent to $382 million in Q3 2012 compared to Q3 2011 on decreased demand levels and pricing. Revenues in the energy tubular products segment in Q3 increased 12 percent to $249 million compared to the 2011 third quarter due to increased volumes shipped of large diameter line pipe in the US operations and strong demand in operations servicing the Alberta oil sands.
Revenues in the steel distributors segment decreased 12 percent in Q3 2012 to $78 million compared to Q3 2011.
Brian R. Hedges, President and CEO, commented, "All of our segments experienced margin pressure in the third quarter as steel prices declined due to lack of demand. The energy segment was able to produce stronger operating results due to higher volumes; however, our other segments were impacted by industry-wide lower shipments. We continue to outpace industry shipments in our metals service center operations."