PSC reports red ink in 2Q 2015

PSC Metals, Mayfield Heights, Ohio, has reported a net loss and lower revenue in the second quarter 2015 10Q document filed with the Securities and Exchange Commission by its parent company Icahn Enterprises.

Difficult business conditions in the first half of 2015 were spelled out in the section of the holding company’s 10-Q filing that concentrates on PSC Metals.

The scrap company took in just $212 million in revenue in the first half of 2015, dropping 43 percent from the $377 million in revenue earned in the first half of 2014. Part of the decline, according to the company, involves revenue earned in 2014 from an aluminum ingot facility that has subsequently been idled.

PSC Metals recorded a net loss of $14 million in the first half of 2015 compared with its loss of $10 million in the first half of 2014. The company’s ferrous scrap tonnage sold dropped nearly 29 percent from 616,000 tons sold in the first half of 2014 to just 439,000 tons sold in the first half of 2015.

Referring to second quarter 2015 ferrous market conditions, Icahn Enterprises says in its 10Q filing, “The shipment decrease was attributable to reduced demand from domestic steel mills, where a third-party report indicated that steel output was 9 percent lower for the three months ended June 30, 2015, as compared to the corresponding prior year period.”

Icahn and PSC also reports that “lower ferrous market prices in the second quarter of 2015 continued to negatively impact the availability of feed.”