PITTSBURGH PSC Metals Inc. continued to narrow its losses despite lower revenues, a sign that the companys exodus from underperforming contracts might be working.
The Mayfield Heights, Ohio-based metals recycler posted a $5-million net loss for the three months ended June 30, down 28.6 percent from a $7-million net loss in the same period a year earlier, even as revenue fell 18.7 percent to $187 million from $230 million.
"A large part of the decrease was attributed to the shutdown of ingot tolling operations at the end of March, to refocusing aluminum shredding capacity to more profitable business and to a general scarcity of supply of nonferrous material," parent company Icahn Enterprises LP, New York, said a regulatory filing with the U.S. Securities and Exchange Commission.
PSC Metals in 2013 made a decision to exit a low-margin nonferrous brokerage business to strengthen its balance sheet and restore margins.
Ferrous scrap shipments totaled 321,000 tons in the second quarter, down 10.3 percent from 358,000 tons a year earlier. Shipments were impacted by shredder outages during the period, as well as increased competition for feedstock, according to the filing.
Nonferrous scrap shipments totaled 36.4 million pounds, down 39 percent from 59.7 million pounds in the same comparison.
For the first six months of 2014 the recycler posted a net loss of $10 million, down 23.1 percent from a $13-million net loss a year earlier, as revenue that fell 23.7 percent to $377 million from $494 million.