May 13, 2015
Global Brass Profitable Despite Declining Shipments
Global Brass and Copper, Schaumburg, Ill., reported net income of $8.1 million during its first quarter, a decline from the $9.7 million during the same period of 2014. Net income in the prior quarter was $2.8 million.
GBC’s net sales during the quarter declined 9.8 percent to $400.2 million. Sales were up from the $390.3 million in fourth-quarter 2014.
The company’s shipment volumes declined 4.2 percent compared to the first quarter of 2014. The decline was attributed to lower demand in the munitions market, plus a decline in shipments to the automotive market, partially offset by increased demand in the building and coinage markets.
“Our first-quarter results reflect continued progress in our cost management, productivity and commercial growth and pricing initiatives, which led to improved profitability and cash flow in spite of softer volume. The decline in volume within the munitions segment was expected due to the anticipated rebalancing of the supply chain,” said John Wasz, GBC’s president and CEO.
By segment, volumes at Olin Brass declined 11.2 percent, while Chase Brass’ volumes were up 4.1 percent and A.J. Oster’s volumes increased 4.0 percent.
“We are encouraged by the continued progress at Chase Brass and A.J. Oster and have high confidence in the initiatives and strategies we are implementing across GBC to drive improved operating performance and expand our product portfolio,” Wasz said.