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Industrial Services of America, Inc. (IDSA) Expects Third Quarter Profits to Triple

Industrial Services of America, Inc. (IDSA), a processor and recycler of ferrous and non-ferrous scrap metals, provided guidance for the third quarter of fiscal 2008 this morning before the open. The company expects earnings to be in a range of $0.34 to $0.36 per share. For the third quarter of 2007, Industrial Services earned $383,159, or $0.11 per share. Through the first nine months of 2008, the company expects to earn $1.10 to $1.12 per share, compared to $0.55 per share for the same period in 2007.

“We will be increasing our ferrous material inventory in the fourth quarter as our shredder will be in place at the first of the year to process this material with plans to sell this material in the first quarter as we believe pricing will be stronger,” said Chairman and CEO Harry Kletter. “We have an optimistic outlook for strong ferrous market pricing due to the long-term shortage.”

Shares of IDSA are up $1.07, or 10.1%, at $11.66 on the news. IDSA has traded in a 52-week range of $6.00 – $19.50. The stock hit its 52-week high on August 18, and pulled all the way back to a low of $8.30 on September 17 amid the market-wide sell-off in commodities. IDSA’s small float of 2 million shares makes it susceptible to large price swings (beta = 2.4). With only 3.64 million shares outstanding, IDSA has a market cap of $42.4 million and a P/E of 11.4, excluding the expected improvement in third quarter results.

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