PITTSBURGH TMS International Corp. says its customers are benefiting from improved demand for automotive steel and that a rebound in construction could be on the horizon.
"Our customers have benefited from an automotive recovery, and we are cautiously hopeful that a nonresidential construction recovery may be in sight," Raymond Kalouche, president and chief executive officer of the Pittsburgh-based parent company of Tube City IMS LLC, said in a conference call.
The companys first-quarter net income soared to nearly $8.1 million from $113,000 in the same period last year despite a 21.1-percent decline in revenue to $589.6 million.
"Our first quarter was consistent with our expectations, given the challenging industry environment we continue to face. We are well positioned for future growth in our market and are confident in our ability to meet our outlook for the year," Kalouche said.
The company is continuing its strategy to grow globally, opening a second trading office in Mexico during the first quarter. The Mexico City office is in addition to its Monterrey office.
As for the scrap metal side of the business, TMS brokered or managed 3.2 million tons of scrap during the first quarter, the company said. Of that amount, 2.2 million tons consisted of agency business, in which TMS served as the exclusive representative for a producer. TMS handled 3.5 million tons of scrap in the first three months of last year.