Nov. 26, 2014
Global Brass and Copper Reports Profitable Quarter
Global Brass and Copper reported net income of $10.2 million on sales of $436.8 million in the third-quarter. Sales declined slightly compared to the year-ago period, while income showed a slight increase.
The decline in net sales was attributable to lower sales of unprocessed metals, a shift in product mix and lower metal prices, partially offset by an increase in average selling prices and the effect of changes in volume by segment, said company officials.
GBC's volume for the third quarter decreased by 0.2 percent to 131.8 million pounds, primarily due to lower demand in the munitions and electronics/electrical components end markets. Those decreases were partially offset by higher demand in building and housing, automotive and transportation.
By segment, volume at Chase Brass increased by 4.1 percent, while A.J. Oster's volume improved by 5.9 percent in the third quarter. Volume at Olin Brass decreased by 2.1 percent.
"While our third-quarter results fell short of our expectations, we experienced significant improvement late in the quarter resulting from our focused efforts on improving operational efficiencies at Olin Brass. In addition, our growth initiatives at A.J. Oster gained further momentum, and we believe the strengthening building and housing market should translate into continued growth for our Chase Brass and A.J. Oster businesses," said John Wasz, GBC's president and CEO.
For the full year, the company expects shipments to range from 510-518 million pounds, a decline from previous forecasts.