GBC Reports Profitable Quarter
By Metal Center News Staff
on Nov 5, 2018
Global Brass and Copper Holdings Inc., Schaumburg, Ill., reported net sales of $429.9 million in the third quarter, an increase of 19.6 percent compared with the same quarter in 2017. The increase was primarily attributable to an increase in the metal cost recovery component stemming from increased sales of unprocessed metal, increased volumes, and the addition of Alumet.
Net income attributable to GBC for the third quarter totaled $14.8 million in 2018, a modest increase from the same period last year.
Third-quarter volumes increased 19.1 percent to 142.2 million pounds compared with the same period in 2017. The increase includes 14.8 million pounds of incremental volume from A.J. Oster’s acquisition of Alumet in November 2017.
In addition, A.J. Oster grew base volumes in the automotive and electronics/electrical components markets. Olin Brass experienced increased demand in the munitions and coinage markets while Chase Brass had increased transportation and industrial machinery and equipment volumes.
“We achieved third-quarter results that reflect growth in volumes as well as adjusted diluted earnings per share, which benefited from changes in the statutory rates and tax strategies that added significantly to our bottom line. Adjusted EBITDA for the quarter was impacted by unfavorable mix along with production related issues,” said John Wasz, GBC's president and CEO.