Metalico misses by $0.05, misses on revs (MEA) 1.41 : Reports Q2 (Jun) loss of $0.06 per share, $0.05 worse than the Capital IQ Consensus Estimate of ($0.01); revenues fell 12.3% year/year to $130 mln vs
Of course it can get worse. As long as they don't have any price discipline on the buy side. Everyone in the scrap metal business is slow, but not everyone is paying over the market to get material. If there is no purchasing discipline or accountability, Carlos will be saying "cost reductions were more than offset by higher metal prices" for every quarterly report. I guess it is "other peoples money" that is getting lost.
Agree with all that manscrap...It's a tough environment. Everyone has gotten in the shredding business over the past few years resulting in stifling competition for a shrinking supply of available scrap. The only way out is price discipline. Problem is can operators buy enough material going that route to cover the monthly nut?? My view is that either the industry will need to continue to downsize through attrition or possibly through acquisitions resulting in capac