PITTSBURGH Commercial Metals Co. (CMC) will continue its quest to recoup higher yields of nonferrous scrap metal and improve margins by upgrading the downstream systems at its auto shredding facilities, the company said.
"In our Texas region, we authorized and built out additional recovery systems for our shredder (amm.com, Oct. 24) and will continue to do so at other shredders where it makes sense," chairman, president and chief executive officer Joseph Alvarado said during the companys fiscal first-quarter earnings call Jan. 7. The upgrade was completed in August and the Irving, Texas-based steelmaker and metals recycler is pleased with the results, he added.
The companys Americas Recycling segment reported an adjusted operating profit of $800,000 for the three months ended Nov. 30, down 82.2 percent from $4.5 million in the year-ago period, on sales that fell to $338.2 million from $351.9 million.
The units shipments totaled 559,000 tons in the quarter, down 0.5 percent from 562,000 tons in the same period last year. Of this, 503,000 tons were ferrous and 56,000 tons were nonferrous, the company said during the call.
Fewer shipments and compressed metal margins in the recycling segment were offset by gains from a sale of real estate and facility relocation reimbursements, CMC said.