PITTSBURGH Commercial Metals Co. (CMC) could be seeking a new home for its recently bought Texas auto shredder.
CMCs wholly owned Structural Metals Inc. subsidiary recently purchased the assets of San Antonio-based Newell Recycling of San Antonio LP (amm.com, May 30).
The shredder purchase supports CMCs vertical integration supply model by protecting its supply and strengthens its San Antonio footprint, chairman, president and chief executive officer Joseph Alvarado said during its fiscal third-quarter earnings call.
CMC is mulling the relocation of the 4,000-horsepower 80-104 Shredder Co. auto shredder, Alvarado said, without elaborating.
Sources suggested in December that Irving, Texas-based CMC would buy the San Antonio shredder and had a long-term goal to move a shredder to its Phoenix mill (amm.com, Dec. 20).
The companys Americas Recycling segment recorded an operating loss of nearly $1.09 million in the three months ended May 31 vs. an operating profit of nearly $3.2 million in the year-ago quarter on revenue that dipped 1.9 percent to $335,104 from $341,743 in the same comparison. However, shipments of 596,000 tons in the fiscal third quarter were up 1.4 percent from 588,000 tons shipped a year earlier.
Meanwhile, CMCs ferrous scrap shipments rose 1 percent while those of nonferrous scrap rose 4 percent in the quarter.
Increased employee-related expenses and a change in pretax last-in first-out (Lifo) income were negative drivers for the segment, the company said.