CHICAGO Metals USA Holdings Corp.s net income jumped 31.5 percent in the first quarter on a pickup in demand.
"Demand improved across most sectors we serve, in particular automotive, aerospace, and oil and gasfield services," chairman, president and chief executive officer Lourenco Goncalves said.
Net income totaled $16.3 million in the three months ended March 31, up from $12.4 million a year earlier, on sales that grew 21.5 percent to $525.3 million from $432.3 million.
First-quarter metal shipments totaled 403,000 tons, up 9.5 percent from 368,000 tons a year earlier, but toll processing slid 11.1 percent to 40,000 tons from 45,000 tons.
Goncalves said that compared with the fourth quarter of 2011, shipments rose 23 percent, revenue increased 15 percent and net income grew 16 percent.
Fort Lauderdale, Fla.-based Metals USA had $257.5 million drawn under its asset-based loan facility at the end of March and excess availability of $182.1 million. Net debt increased by $26.6 million during the quarter to $483.1 million, primarily due to the mid-March acquisition of Gregor Technologies LLC and increased accounts receivable resulting from higher sales.