PITTSBURGH Tube City IMS
parent company TMS International Corp. saw its first-quarter
net income plunge 98.2 percent despite a 12.5 percent rise in
sales, but the company is bullish on the domestic market,
executives said during the companys earnings call.
The North American market showed
the strongest growth in the companys global portfolio,
rising 4 percent. Mill operating rates are also higher, lead
times have expanded and automotive, heavy equipment and general
manufacturing are all improving, chairman, president and chief
executive officer Joseph Curtin said.
The Pittsburgh-based scrap
broker and mill services provider also said it recently snagged
two additional contracts to provide mill services starting in
the first quarter of next year.
The contracts will begin in the
first quarter of 2013. While the company didnt disclose
the names of its new customers, executives did say the company
would provide stainless steel slag services at one mill in
Alabama and another in Saltillo, Mexico. The two contracts are
worth a combined $179 million.
TMS posted net income of
$113,000 on nearly $747 million in revenue during the quarter,
largely due to a one-time charge of $12.3 million to retire
existing obligations early when the company refinanced its
debt, executives said.