This company just reported a very profitable and frankly surprising to most (except me) third quarter 2011. Closed today @ $10.03 (+11.1%). EPS of $0.45 on revenues of $492 million. Not an easy task by any stretch, in the base metals sector and it's businesses the last few months. They did meet and even exceed a bit, previous guidance of 2Q. They did what they said, so they get some props/kudos for that in my book. Especially those companies with predominantly domestic manufacturing exposure. They also were aided by some very savvy feed stock buying/stoking, to lay away in inventory/stockpiling it seems. And used it and managed it well as to not have over hang inventory. Also a "vast diversification of produced products mixture that is not only beneficial, but defensive of profit margins." This in Plates and Shapes added to core ferrous business that was before. They managed to mitigate the cyclically nature of the business it seems. They stepped in and filled the supply gap created by some others going out of business during these tough economic conditions. They did this for a major HVAC maker just recently in fact.
The number of clients MUSA has across a vast array of industries really makes them a good proxy for the overall parts and manufacturing macro picture in the USA. 14 different markets they touch. 25% of revenues come from non ferrous sales this Q. That is up 20% from last year alone. (PCP) Precision Cast Parts should be looking at this company IMO. As well as Harold Simmons from Contran Corps Valhi Inc. (VHI). One analyst on the call today asked the CEO if he (the CEO) had any intentions of acquiring anything else soon. I felt that was the wrong question to ask. I would have asked > "Anybody been sniffing around looking to buy MUSA?" Because they are a target rich M&A caidate here at this market cap..... for sure in my book. (RS) (NUE) (AA) (CMC)(STLD)...all potential buyers They supply Boeing (BA) and it's 787 Dream-Liner (uses twice as much aluminum sheeting as rest of BA's models), among other aerospace companies that will be refurbishing fleets over the next decade, the oil and gas service industry, The trucking industry, Farm and agriculture equipment, Major Appliance Manufacturers, General Electric (GE), They make some electrical components and cabinets for them. Like the aluminum cabinets you see on street corners that house the traffic light controllers. That is bullish in itself for USA infrastructure revamp. This company has a monopoly on many specific things used in a lot of specific industries that will be seeing increased sales and demand soon. They also have some very lucrative Federal Government contracts both military and non. They also make 'heat exchangers' for geothermal wells/alternative energy and home heating industry. I personally would give this company any credit facility they needed or wanted and send them on a shopping spree to grow some more. I also see a dividend in future from the cash flow creation taking shape here. They make a lot of the steel for the automotive business (flat rolled steel) from their Ohio Valley recent acquisition. This is a USA jobs producer company (that goes milessssssssss in my trading book) Look below. They are paying less in taxes and employing more people. All USA companies should take note and lessons!