Services of America Inc. (ISA) posted its second quarterly loss
in a row as lower scrap prices reduced revenue.
The Louisville, Ky.-based scrap
metal processor posted an $886,000 net loss for the three
months ended Sept. 30, a significant improvement from a
$4.54-million loss in the same period last year, on revenue
that fell 18 percent to $45.73 million. The company had posted
a $1.24-million net loss in the second quarter on revenue of
$49.9 million (
amm.com, Aug. 15).
Revenue was impacted by a
23,000-gross-ton (41.5-percent) decline in ferrous scrap
shipments during the third-quarter. Repeat scrap buyers
decreased their purchases by 18.6 percent ($9.6 million),
partially offset by a 7.3-percent increase in shipments to new
Increased demand from its
primary stainless customer, who didnt buy much in the
second quarter, led to a 79.1-percent (10.4-million-pound)
increase in stainless scrap sales, the company said.
ISA said it is working to
broaden its customer base, brokering deals and building blends
for specialty mills.
The recycler also is taking
steps to control spending, decreasing labor costs by $243,000
and rental expenses by $360,600, according to a regulatory