Castle Quarterly Sales Climb 20% From 2017
By Metal Center News Staff
on Nov 16, 2018
A.M. Castle & Co., Oak Brook, Ill., reported net sales of $148.1 million in the third quarter, a 20.2 percent increase compared with the same period in 2017. Net sales dipped 1.5 percent from the prior quarter.
The company reported a net loss of $6.7 million in the quarter, including $8.7 million of interest expense. The loss was an improvement from the $8.5 million loss posted in the second quarter.
Gross margin in the quarter improved to 25.1 percent in the quarter, though it dropped from the 26.2 percent in the prior quarter.
“Our quarterly sales were more than 20 percent better than the prior-year third quarter, driven by strong volume and pricing. We saw continued healthy demand and a positive pricing environment throughout the third quarter, and our sales and gross material margin momentum has continued into the fourth quarter,” Chairman and CEO Steve Scheinkman told investors and analysts at the company’s quarterly conference call.
For the year to date, Castle reported net sales of $444.4 million, an increase of 12.3 percent compared with 2017, which included both the predecessor and successor companies. The net loss through three quarters totaled $20.3 million.
“While we are cautious heading into the seasonally-slow year-end months, when volumes are traditionally lower, we look forward to expanding on our recent positive operating performance,” Scheinkman said.