PITTSBURGH PSC Metals Inc. fell into the red last year as higher revenue and shipments were unable to offset lower selling prices.
The Mayfield Heights, Ohio-based metals recycler and broker posted a 2012 operating loss of $58 million, in contrast to operating earnings of $6 million the previous year, despite revenue inching up 0.6 percent to more than $1.1 billion.
The revenue increase was driven by higher nonferrous shipments, increased brokerage sales and 2011 acquisitions, according to a regulatory filing.
Nonferrous shipments totaled 241.33 million pounds last year, a 37.6-percent increase from 175.52 million pounds in 2011, augmented by increased shipments of shredded aluminum, but average nonferrous selling prices were down 12 percent.
Ferrous shipments totaled 1,592,000 tons, a 1-percent improvement from 1,576,000 tons in 2011 but average selling prices were 9 percent lower.
Parent company Icahn Enterprises LP posted 2012 net income of $396 million, down 47.2 percent from $750 million the previous year despite a 60.2-percent increase in net sales to $14.62 billion from $9.13 billion driven largely by its energy, rail car and gaming investments.