NEW YORK TMS International Corp., the parent company of Tube City IMS Corp., has expanded its trading operations with the opening of new offices in Miami; Austin, Texas; and Belo Horizonte, Brazil.
The expansionaimed at better serving domestic and international customersmarks TMS first formal trading presence in both Brazil and Florida, according to J. David Aronson, president and chief operating officer of the companys raw material and optimization group, calling the locations "strategic."
"The opening of the office in Brazil is a key step in TMS Internationals increasing globalization. We look forward to better serving Brazils rapidly increasing demand for raw material and steel mill services," Aronson said in a statement.
The Brazilian office will be led by Carlos Crego, general manager of the raw material and optimization group in Brazil, who will be charged with trading and expanding the companys operations in the Latin American nation. The Miami office, which will support TMS Latin American offices, will be overseen by Hideto Hata, director of outsource purchasing and sales for Central and South America, while the Austin office will be led by trader Rick Groenert, TMS said.
"The Texas office is integral to the companys initiatives to expand its market in the Southwest U.S.," Aronson said.
The expansion plan follows a stronger quarter for the Pittsburgh-based scrap broker and mill services provider, with TMS reporting second-quarter net income of nearly $9.8 million, more than double the $4.5 million logged in the year-ago quarter and well above the $411,000 gain attributable to common stockholders logged in the first quarter.
Sales were largely flat at $669.4 million vs. $670.8 million in the year-ago quarter, although they were down from $747 million in the first three months of the year.
"TMS International produced solid second-quarter results, driven in large part by our successful new contract start-ups. We are also pleased that the risk-minimizing features of our business model enabled us to avoid material inventory write-downs despite significant declines in commodity pricing, which occurred during the quarter," chairman, president and chief executive officer Joseph Curtin said in a statement.
TMS continues to target a rise in adjusted earnings before interest, taxes, depreciation and amortization of 6 to 10 percent this year.