Metalico, Inc. ( MEA ) is a scrap metal processor headquartered in New Jersey. Metalico operates in two segments: ferrous and non-ferrous scrap metal recycling, and lead fabrication.
Refractory metals, such as molybdenum, tungsten and tantalum, are recycled at the central Pennsylvania facility.
In Newark, New Jersey, the company processes used catalytic converters and recycles platinum, palladium, rhodium, known as Platinum Group Metals. The metal is purchased from various sources including manufacturers, small scrap dealers, demolition contractors, and peddlers. The scrap is then sorted and sold to mills, furnaces and foundries.
Metalico Reports the Best Quarter in the Company's History
On Apr 24, Metalico reported record first-quarter earnings that blew by Wall Street estimates by 53.85%. Net income rose 67% to $6.1 million, or 20 cents per share, compared to $3.1 million or 12 cents per share in the first-quarter 2007. Analysts expected 13 cents per share.
Sales increased 230% to $170.5 million from $51.8 million in 2007.
The scrap metal segment led the profit surge in the quarter. Quarter-over-quarter unit volume increased 82% for ferrous and 95% for non-ferrous metals. Prices of both also soared. Ferrous metal prices rose 50% quarter-over-quarter while non-ferrous increased 166% during the same period. Lead fabrication volumes remained unchanged.
MEA Is Bullish About the Second Quarter
The company didn't provide guidance for the second quarter but scrap metal pricing continues to be in the company's favor. According to MEA, ferrous scrap metal pricing has increased further during the second quarter, hitting record levels in April. In the non-ferrous category, prices have settled into a trading range but are still trading at much higher levels than a year ago.
Additionally, Platinum Group Metal prices hit record highs during the first quarter on supply issues related to the power outages in South Africa and concerns over mine operations in that region. Prices in the group have declined about 10%, but remain at historically high levels.
Prices in the lead fabrication segment appear stable. The company said it expects to see seasonally higher unit volumes that could, however, be impacted by the overall slowdown of the US economy.
http://astuk-virtuallystocks.blogspot.com/
$13.48 (05/06/08)
