NEW YORK Industrial Services of America Inc. (ISA) says it has improved its scrap buying discipline and reduced expenses as it moves into 2014 after recording a significant deterioration in results last year.
The Louisville, Ky.-based companys net loss more than doubled compared with 2012 as its total revenue tumbled 29.6 percent.
ISA has undergone a "series of dramatic changes" since the fourth quarter of 2013 in an effort to return the company to profitability, ISA president Sean Garber said in a statement. "When we agreed to assume operational control of ISA, we immediately recognized that ISA had an impressive portfolio of assets. However, the company needed to address some legacy issues that resulted from a strategy it established during the scrap boom."
Garber said that since the beginning of 2014 the company has reduced annual selling, general and administrative expenses by about $1.9 million and "at the same time we have improved our scrap buying discipline, and as a result we have already started to see increasing shipments into ISAs main yard."
ISAs metal recycling segment posted a 2013 operating loss of $8.19 million, 37.5 percent higher than $5.95 million a year earlier, on revenue that tumbled 30.8 percent to $129.37 million from $187.03 million, according to its earnings report.
Stainless steel shipments fell 38 percent year over year to 31.6 million pounds, shipments of ferrous material declined 8 percent to 11,500 gross tons and nonferrous shipments dipped 6.8 percent to 2.3 million pounds.
ISA announced earlier this year that it would discontinue production of stainless steel blends as a result of continued pressure on the prices of stainless steel materials (amm.com, Jan. 13).