PITTSBURGH European Metal Recycling Ltd.s (EMRs) profits were more than halved in 2012 as the company wrestled with the same host of issues negatively impacting recyclers across the globe.
Full-year earnings totaled £31.58 million ($50.77 million), down 61.3 percent from £81.66 million the previous year, according to the Warrington, England-based companys financial statements, which were made available only recently.
EMRs directors described 2012 as difficult, with global and market forces working together to adversely impact the companys performance. Demand and pricing were weighed down in the United States by the "fiscal cliff" issue.
The recycler noted that low scrap levels and an overcapacity of processors, mostly shredders in the United States, worked to erode ferrous and nonferrous scrap margins.
Gross profits for 2012 fell 12.5 percent to £373.34 million ($600.39 million) from £426.84 million the previous year despite a 5-percent increase in turnover to £3.18 billion ($5.12 billion) from £3.03 billion.
EMRs investments in its U.S. facilities during 2012 are expected to reap benefits. "The investment programs in both the U.S. and U.K. will become operational during 2013 and early 2014, and will have clear accretive impact on group profitability," it said.