Aug. 16, 2017

GBC Sees Improved Financials, Despite Volume Decrease

Global Brass and Copper Holdings, Inc., Schaumburg, Ill., reported net income of $16.1 million for its second quarter, compared with $8.4 million a year ago. The 91.7 percent increase over the prior year was due to a temporary production outage at Olin Brass in the second quarter of 2016 and receipt of insurance proceeds related to the outage, according to GBC.

Net sales for the quarter totaled $377.4 million, compared with $337.9 million for the same quarter in 2016. The company attributed the 11.6 percent increase in net sales to higher pass-through metal prices and increased total metal sales.

Lower demand in the coinage, building and housing, and munitions markets caused overall volume to decrease by 4.2 percent in the quarter to 126.2 million pounds, compared with last year. These decreases were partially offset by increased volumes to reel rollers.

“Overall through the quarter, our business reacted very well to the volume challenges, and we believe we have maintained our customer share, suggesting that decreased volumes are the result of overall demand rather than our value proposition to our customers,” President and CEO John Wasz said, adding that the company continues to create value with focused initiatives targeting supply chain, productivity and margin management.

Global Brass and Copper’s Olin Brass business segment accounted for $181.5 million of total second-quarter sales, compared with $155 million a year prior, and shipped 63.4 million pounds during the period.

The company’s other segments, Chase Brass and A.J. Oster, saw total pounds shipped dip slightly in the second quarter. Chase Brass reported net sales of $141 million on 54.5 million pounds shipped, while A.J. Oster collected $75 million on 18.9 million pounds.


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Saturday, October 21, 2017