big ideas for global investors Search
   Members       Sign-up       Newsfeeds        Companies        Stock Directories       Research       Video       Funding   

Armco Metals Holdings, Inc. (AMCO) Posts Q2, HY14 Results, Strengthens Top Line

August 15, 2014 ( Mining stocks newswire) Armco Metals reports financial results for the second quarter ended June 30, 2014, recording sequential increases across most of the board as well as year-over-year increases in total sales.

Armco is a U.S.-based company that engages in the import, sale, and distribution of metal ore and non-ferrous metals in the People's Republic of China, recycles scrap metals used by steel mills in the production of recycled steel, and provides sourcing and pricing services for various metals to its network of customers.

The company's second-quarter total revenue increased 19% to $32.9 million compared to $27.7 million recorded in the comparable quarter of 2013. The company attributes the gain primarily to increases in the sales of scrap metals and steel billet, partially offset by a decline in sales of manganese ore, chrome ore and titanium.

Armco's recycling business generated revenue of $26.2 million, a considerable rebound from the segment's first-quarter 2014 revenue of $2.6 million, and representing 80% of total revenue. Armco's trading business generated revenue of $6.7 million, accounting for 20% of total revenue.

Gross profit for the second quarter of 2014 was $3.1 million as compared to gross profit of $2.4 million in the second quarter of 2013. Gross margin in the second quarter of 2014 was 9.3% compared to 8.5% in the second quarter of 2013. The significant increase in gross profit and gross margin was largely due to a significant improvement in margins in our trading business.

The company reported a first-quarter net loss of $0.8 million, or a loss of $0.01 per basic and diluted share, compared to earnings of $0.9 million, or $0.04 per basic and diluted share, in the same period of 2013.

Commenting on the company's second-quarter performance, Armco chairman and Chief Executive Officer Kexuan Yao pointed to the company's strong business model.

"In the second quarter of 2014 we experienced a strong rebound in sales from our metal recycling business," he stated in the news release. "We believe the implementation of our "platform strategy" sales model in this business, where we work with our customers more closely, lower our market risks by sharing them with our customers has helped us increase our sales with less or without additional working capital. We are encouraged by our return to generating income from both our market segments and will look to build on this improvement from the first quarter in the second half of 2014."

For the six-month period ended June 30, 2014, revenues increased to $42.8 million compared to revenues for the same period of 2013 of $42.0 million.

Gross profit for the first six months of 2014 was $1.9 million compared to $3.0 million in the 2013 period, largely attributable adverse market conditions in the scrap metal industry. In the first six months of 2014, Armco's recycling business contributed 67% and 52% of our net revenue and gross profit, respectively.

First-half net loss was $4.4 million, or a loss of $0.11 per share, compared to a net loss of $0.14 million, or a loss of $0.01 per share, in the first half of 2013.

As of June 30, 2014, the company had $0.7 million in cash and cash equivalents, compared to $0.6 million at year-end of 2013.

Armco also noted that in order to satisfy initial listing standards with the NYSE MKT, the company is evaluating a change in the structure of its acquisition of Draco Resources, Inc. The company continues to pursue a substantial interest in Draco and expects that a restructured agreement with Draco will be formalized following management discussions.

For more information, visit

About QualityStocks

QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. We offer several ways for investors to find, evaluate, and learn more about investing in these companies.

Sign up for "The QualityStocks Daily Newsletter" at

The Quality Stocks Daily Blog

The Quality Stocks Daily Videos

The Quality Stocks "Ones to Watch"

Please see disclaimer on the QualityStocks website:

More Info: Newswire

This news is published on the Newswire - a global digital news source for investors and business leaders

Disclaimer/Disclosure: is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info:

Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: Global investors must adhere to regulations of each country.

Please read privacy policy:

Questrade Democratic Pricing - 1 cent per share, $4.95 min / $9.95 max

Join Investor Ideas Members to access the Renewable Energy stocks directory, water stocks, biotech stocks, defense stocks directories and the Insiders Corner


Investor Ideas © 2000 - 2015®, ECON


login | logout | about us | contact | disclaimer / disclosure |
partners / links | job search | privacy policy |
advertise | trade | sitemap |