TMS International reports lower earnings, services expansion with Mexican mill

Friday, 02 August 2013 01:01:27 (GMT+3)   |   San Diego

TMS International Corp., the parent company of Tube City IMS Corporation, a leading provider of scrap to steel mills globally, announced Thursday results for its Q2 ended June 30, 2013.

Net income attributable to common stock was $8.1 million for Q2 compared with $9.8 million in 2012.

Commenting on the second quarter results, Raymond Kalouche, President and Chief Executive Officer of TMS International Corp., said, "While new contracts in our mill services group performed very well in the quarter, our results were unfavorably impacted by softness in steel production at our customer mills in North America, mostly due to planned and unplanned outages, as well as lower activity in our raw materials procurement business.  However, we continue to focus on creating value and delivering exceptional service for our customers globally, and are optimistic about improving production volumes in the second half of 2013."

The company also announced today that it has expanded its services with the largest integrated steel mill in Mexico.  These services are expected to generate more than $66 million in revenue during the term of these services, at expected production levels, with aggregate growth capital investments of approximately $9.5 million.

TMS is lowering its full-year guidance for 2013 adjusted EBITDA to a range of $150 million to $155 million, from its original guidance of $152 million to $160 million.

 


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