Metals USA Holdings (NYSE: MUSA), a Houston-based steel manufacturer, said Tuesday it reversed course to post a fourth quarter profit as revenues rose 32% on higher metal demand.
For the fourth quarter of 2010, company reported net income of $3.1 million, or 8 cents a share, compared to a loss of $4.4 million, or 18 cents a share, for the year-ago period. Revenues were $323.9 million, up from $245.3 million.
Although earnings fell short of analyst estimates of 9 cents a share, revenues were higher than the estimated $317.7 million.
The company shipped roughly 0.27 million tons of metal during the quarter, up 22% year-over-year. Average metal sales price was 11% higher than the same period in 2009.
"Our customers' metal demand in the fourth quarter was consistent with a continuing economic recovery,” said CEO of Metal USA, Lourenco Goncalves.
After more than two years of subpar US industrial output, Goncalves added, there is a “serious” scrap shortage amid the economic recovery.
For the entire year, the company earned $11.5 million, or 34 cents a share, more than triple the $3.5 million, or 14 cents a share, earned in 2009. Revenues rose 17.6% to roughly $1.3 billion.
Looking to the first quarter of 2011, Goncalves said the economic recovery and steel price increases should continue to support the company’s positive momentum.
Since the announcement, Metal USA’s shares have rallied 4.6% to trade at $15.90 as of 12:35 pm EST.