CHICAGO Service center
operator Metals USA Holdings Corp. posted net income of $3.7
million for the fourth quarter, down 73.6 percent from $14
million in the same period a year earlier, on sales that
slipped 4 percent to $437.5 million.
Its fourth-quarter results
included a non-recurring pre-tax expense of $6.3 million on
debt extinguishment in connection with the companys
senior secured note refinancing, $600,000 for non-cash pretax
annual pension expenses and $200,000 for pre-tax expenses
attributable to secondary offering costs.
"During the fourth quarter, the
market continued to be impacted by too much steel chasing too
few orders," chairman, president and chief executive officer
Lourenco Goncalves said Feb. 6. "A prevailing weak business
environment, compounded with typical seasonality around the
holidays, forced us to choose between preserving margin or
sales volumes, and we chose to maintain margin."
As a consequence, he said, the
companys gross margin of 23.2 percent in the final
quarter was consistent with margins achieved throughout the
However, Goncalves was
optimistic. "We believe the demand weakness experienced in late
2012 is now behind us and we have begun 2013 with
well-positioned inventory," he said.
The Fort Lauderdale, Fla.-based
company reported full-year net income of $52.7 million, down
18.4 percent from 2011 despite a 5.2-percent increase in sales
to more than $1.98 billion. Annual shipments of flat-rolled,
plate, shapes and nonferrous products rose 11 percent to 1.55
The company ended 2012 with $432.3 million in inventory, up
7.4 percent from the end of 2011.