International Corp. expects increased domestic steel
consumption in the coming year, primarily driven by the
automotive, energy and construction markets.
Automotive demand is expected to
surpass 15 million units for the first time since 2007, and the
energy sector looks steady, president and chief executive
officer Raymond Kalouche said during a Feb. 14 conference call
on the companys fourth-quarter and full-year 2012
Kalouche expects domestic
steelmakers to register an average 77-percent utilization rate
this year, and sees the companys overall growth
increasing between 5 and 10 percent in 2013.
The Pittsburgh-based mill
services provider and owner of Tube City IMS Corp. saw net
income attributable to common shareholders slip 1.4 percent to
$6.06 million from $6.15 million a year earlier on a
13.1-percent drop in revenue to $536.8 million from $617.5
For the full year, net income
attributable to common shareholders of $26.1 million rose 49.2
percent from $17.5 million in 2011 on revenue that fell 5.1
percent to $2.53 billion from $2.66 billion.
"We are pleased that our
financial results are right in the middle of our full-year
public guidance," Kalouche said in a statement. "Our revenue
and Ebitda (earnings before interest, taxes, depreciation and
amortization) were up year over year despite a very challenging
environment in the industry for much of the year."
Conditions throughout the year
were driven by fluctuating steel volumes, Kalouche said during
the call. "October was one of the softest months we have
experienced in the last few years," he said.
Fourth-quarter run rates at
domestic mills that TMS serviced averaged 67.1 percent vs. an
average of 70.3 percent in the year-ago quarter. In North
America, fourth-quarter 2012 rates were 70.4 percent, down
slightly from 70.8 percent in the fourth quarter of 2011 as
mills took maintenance outages while waiting for demand to
Demand has been on the upswing
since then and is now in the 75-percent range, Kalouche