International Corp.s second-quarter revenue and earnings
were driven lower by outages at domestic steel customers.
parent company of Tube City IMS LLC posted net income of $8.23
million in the three months ended June 30, down 15.3 percent
from $9.71 million in the same period last year on revenue that
fell 5.7 percent to $631.42 million.
"While new contracts
in our mill services group performed very well in the quarter,
our results were unfavorably impacted by softness in steel
production at our customer mills in North America, mostly due
to planned and unplanned outages, as well as lower activity in
our raw materials procurement business," president and chief
executive officer Raymond Kalouche said.
Revenue from raw
material shipments was negatively impacted by an extended
outage at one mill, a second mill stopping production due to an
equipment malfunction and a labor outage at a third facility in
Canada. A decision to stop selling scrap metal to a fourth
customer over dissatisfaction with payment terms reduced
revenue but improved cash flow.
Kalouche said during
an earnings conference call that the company is cautiously
optimistic that production levels will improve in the second
half of the year.
The company announced
it is expanding its scope of services with Mexicos
largest integrated steel mill, which is expected to generate
more than $66 million in revenue during the length of the
contract. Services will begin in the first quarter of 2014.