Dealing With High Risk Accounts?

January 25, 2012 - - As we continue into the New Year, credit remains on the forefront of credit professional minds throughout the metals industry. Over the past few years we have experienced historical swings in several economic indicators, in addition to tightening of the credit markets for small businesses. Due to these factors, the probability of selling a high risk account has dramatically increased.

Economic Update

January 25, 2012 - - The US economy showed signs of mild recovery in the final quarter of 2011. According to the most recent ISM release, economic activity in the manufacturing sector expanded for the 29th consecutive month in December. New orders increased, reflecting the third straight month of growth after three months of contraction. Manufacturing finished the year on a positive note with new orders, production and employment all growing in December, giving an optimistic view toward the first quarter of 2012.

Bankruptcy News

January 25, 2012 - - With a New Year comes new beginnings, and with new beginnings comes new risk. We added seven companies to our bankruptcy list since the last ProfitGuard eNewsletter. Six filed in December (including: Crystallex International Corporation, TL Fabrications, S&K Extrusions, Cobra Stainless Steel, B&B Iron Works of Peekskill, and CQMS Razer), and one filed earlier this month (Timminco Limited). We have listed three notable filings below, while and a full list can be found at our website (www.eprofitguard.com). Below we will take a closer look at three of these bankruptcies.

Company Focus: Global Brass & Copper

January 25, 2012 - - This month we reviewed Global Brass & Copper Holdings which filed an S-1 with the Secretary of State on October 28, 2011, announcing plans of an initial public offering for its common stock. The company was formed in October 2007 by KPS Capital Partners, LP to acquire the metals business of Olin Corporation. This acquisition was completed on November 19, 2007. Today, Global Brass & Copper operates 11 manufacturing facilities and distribution centers across the United States, Puerto Rico and Mexico employing roughly 1,900 people.

Industry Spotlight: Steel

January 25, 2012 - - The global steel market is expected to continue to expand in 2012, although at a slower rate than 2011. The World Steel Association (World Steel) estimates a 5.4% global demand growth rate, while the Economist Intelligence Unit (EIU) estimates a demand growth rate of 4.5%. The slowdown in demand growth is expected as a result of weakening Chinese demand, slow growth in developed economies, and low investment goods spending. Overall, World Steel anticipates global steel demand to be at 73% of 2007 levels in 2012.