March 16, 2016
GBC Reports Profitable 2015
Global Brass and Copper, Schaumburg, Ill., reported 2015 net earnings of $35.6 million, up 12.3 percent from the previous year, defying industry trends. Full-year sales of $1.5 billion were down 12.0 percent from 2014. Shipments of 511.9 million pounds decreased 1.6 percent from the prior year.
“We are pleased with our full-year 2015 financial results, which were in line with our expectations and included meaningful earnings growth, improved margins and $89 million of cash generated from our operating activities, all while in a soft volume environment. In 2015, we improved our operating performance and helped build a strong foundation for growth,” said John Wasz, GBC’s president and CEO.
In the fourth quarter, GBC reported net income of $3.5 million, up modestly from the same period last year. Net sales decreased 17.1 percent to $323.4 million, while shipments increased 1.1 percent to 120.8 million pounds. Volumes increased as a result of higher coinage demand, partially offset by lower demand in the munitions and industrial machinery and equipment markets.
“We continue to differentiate ourselves in this volatile macroeconomic environment as commodity prices decline. Despite the fact that copper prices declined more than 25 percent year-over-year in Q4 alone, our balanced book approach effectively insulates our earnings from these fluctuations in commodity prices, as evidenced by our stable margins through this volatile period. We maintained steady margins because we are a metals converter, not a metals producer,” Wasz said.