PITTSBURGH Industrial Services of America Inc. (ISA) is taking steps to repair its financial results after falling deeper into the red last year.
The Louisville, Ky.-based scrap metal processor has reduced its annual overhead costs by $3.4 millionincluding saving $1.1 million by trimming its full-time head count to 155 workers from 176 in 2011to align its capacity with the reduced material flow to its facility, it said.
Earlier this week, ISA said it had taken on private equity firm Blue Equity LLC as an investor to help manage the company (amm.com, April 1).
ISAs 2012 net loss of $6.6 million was up 70.6 percent from a year-earlier $3.9-million loss, on revenue that fell 29.9 percent to $194.2 million. Its fourth-quarter net loss of $4.5 million soared from $1.8 million in the 2011 period as revenue slid 26 percent to just under $37 million.
Business conditions remain challenging, and there has been no easing in the heated competition to obtain feedstock, ISA said, noting ferrous scrap shipments fell 30.5 percent last year and those of stainless dropped 23 percent.
ISA said the self-service auto salvage parts division that it opened last summer is showing some benefit, noting that the vehicles it sends to the adjacent shredder are increasing the quality of the yield.