Nov. 23, 2016

Castle Cuts Losses in Third Quarter

A.M. Castle & Co., Oak Brook, Ill., reported a net loss of $20.0 million in its third quarter, an improvement of 28.2 percent from the same quarter of 2015 and a modest uptick from the prior quarter. Through three quarters, the specialty metals distributor posted a loss of $78.1 million, a 12.8 percent improvement from 2015.

Castle’s net sales in the third quarter totaled $124.9 million, a decrease of 17.1 percent compared to third-quarter 2015. The decrease in revenues was mainly the result of a 9.6 percent drop in tons sold per day, coupled with a 4.4 percent decline in average selling prices. The company closed its Houston and Edmonton operations in February due to the weak energy market, which contributed to the decline in tons sold. Sales year to date totaled $419.4 million, a decline of 17.0 percent.

"Although we experienced the normal industry slowdown during the summer months, our transformation continued to take hold as we achieved our third sequential quarter of EBITDA improvement,” President and CEO Steve Scheinkman told investors and analysts during the company’s quarterly conference call. “While our sales tons per day decreased by 6.0 percent compared to the previous quarter, our financial performance improved. We were able to increase our gross margins to align with Castle's traditional margins in more stable markets even in this historically low commodity price environment,”

During the quarter, Castle received notification from the New York Stock Exchange that its stock price, at less than $1 per share, no longer met the listing standards. Shortly thereafter, the company announced the sale of 4.6 million shares by Raging Capital to W.B. & Co., one of its oldest shareholders. W.B. now owns about 35 percent of the company’s common stock. In conjunction with that move, Castle announced $100 million in new secured-term credit financing, which “sends a strong message to the market that Castle has the support of world-class institutions,” Scheinkman said.

Looking ahead, he added, “the company is well-positioned to take advantage of the eventual recovery in industrial end-market volumes and improvement in commodity prices. We expect the aerospace markets to remain stable, and for business to improve, particularly where we have long-time contracts with sub-contractors who support platforms that are anticipated to grow.”



September 2017: Numbers Don’t Add Up for Service Centers
More...
 
Pause
September 2017: Lichtenstein: Five Steel Truths that Demand Attention
More...
Fall 2016: Cutting & Sawing Equipment
More...
Summer 2017
More...
 
Pause
Advanced Controls on Braner Slitters
More...
AHVS Precision Leveler Features Flip-Top Design
More...
Formtek’s Tishken Slitter Increases Production Volume
More...
Red Bud System Handles High-Strength Steels
More...
Bradbury Launches Flat Trak CL Monitoring System
More...
Artus Knives Custom Designed
More...
 
Pause
Privacy Statement  |  Terms Of Use
Copyright by Metal Center News



Saturday, October 21, 2017