For the first quarter of 2012, the Universal Stainless & Alloy Products segment, including the North Jackson operation, had sales of USD 60.3 million and operating income of USD 5.8 million, yielding an operating margin of 9.6% of sales. In the first quarter of 2011, sales were USD 55.2 million and operating income was USD 4.9 million or 8.9% of sales. For the fourth quarter of 2011, segment sales, including the North Jackson operation, were USD 49.2 million and operating income was USD 4.0 million or 8.2% of sales.
Segment sales rose 9% from the first quarter of 2011 on 1% higher tonnes shipped mainly due to increased shipments to service centers and forgers and of conversion pounds with the addition of North Jackson, offset by lower shipments to rerollers. Segment sales increased 23% from the 2011 fourth quarter on 24% higher volume mainly due to higher shipments to service centers, forgers and to the Dunkirk facility and increased conversion pounds.
Sales for the Dunkirk Specialty Steel segment were USD 30.5 million for the first quarter of 2012 and operating income was USD 3.4 million, yielding an operating margin of 11% of sales. This compares with sales in the first quarter of 2011 of USD 22.0 million and operating income of USD 2.3 million or 10.6% of sales. In the fourth quarter of 2011, sales were USD 24.5 million and operating income was USD 2.5 million, or 10.1% of sales.
Dunkirk's sales increased 39% from the first quarter of 2011 on a 29% increase in tons shipped, mainly due to increased shipments to service centers. Dunkirk's sales increased 25% from the fourth quarter of 2011 on 26% higher tons shipped, also due to increased shipments to service centers.
Market segment information
Net Sales
| Item | Q1 '12 | Q1 '11 | Change |
| Service centers | 41,656 | 28,628 | 45.5 |
| Forgers | 13,719 | 11,870 | 15.6 |
| Rerollers | 10,996 | 12,805 | -14.1 |
| Original equipment manufacturers | 4,997 | 4,121 | 21.3 |
| Wire re drawers | 1,742 | 1,259 | 38.4 |
| Conversion services | 1,467 | 1,014 | 44.7 |
| Scrap sales and other | 37 | 114 | -67.5 |
| Total net sales | 74,614 | 59,811 | 24.7 |
| Tons Shipped | 14,034 | 13,013 | 7.8 |
In '000 USD
Source - Universal Stainless & Alloy Products Inc
(www.steelguru.com)
