Service Centers
A.M. Castle Preliminary Results Lower than Expected
Written by Sandy Williams
October 10, 2013
Global distributor A.M. Castle & Co. expects a third quarter loss of 28 to 32 cents per share and EBITDA between $4 million and $5 million according to preliminary results announced on Oct. 8. Sales are expected to range between $250 million and $255 million for the quarter.
Projections were well below analyst estimates of losses ranging between 7.0 percent (Thomson Reuters poll) and 20 percent (Key Banc), prompting adjustments to the market estimates for the quarter and year. Analysts suggested A.M. was hurt by increased metal costs that were not passed through to customers and lower volume sales.
A.M. Castle reported challenging industry conditions, weakness in key end markets and softness in market selling prices as contributing to lower sales and earnings.
“We expect cost savings related to restructuring initiatives executed in the first half of 2013 to be in line with expectations and the cost structure to perform as anticipated,” said CEO, Scott Dolan. “Inventory reductions and cash generation results remain intact despite lower volume levels, demonstrating the success of our cost reduction activities earlier this year.”
A.M. Castle is a global distributor of specialty metal and plastic products and supply chain services. Its metals service business specializes in distribution of alloy and stainless steels, nickel alloys, aluminum and carbon. The company will release final third quarter results on Tuesday, October 29, 2013.
Sandy Williams
Read more from Sandy WilliamsLatest in Service Centers
Worthington Steel set to move HQ across town
Worthington Steel is preparing to move its corporate headquarters to the Easton area of Columbus, Ohio.
Reliance reports record tons sold in Q1
A factor in the sales was customers buying ahead of tariff-related price increases.
Galv buyers notched strong Q1, but see uncertainty on the horizon
Participants on the HARDI Sheet Metal/Air Handling Council call said underlying demand is solid but there are slower pockets in some markets.
GM names Worthington a 2024 Supplier of the Year
This is the Ohio-based steelmaker’s fourth time winning the award.
Olympic taps Hegler for GM role at Action Stainless
Olympic Steel has named Alex Hegler as general manager for its Action Stainless facility in Rock Hill, S.C.