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
Triple-S Steel buys plate distributor Griffin Trade Group
Triple-S Steel Holdings has acquired Houston-based plate distributor Griffin Trade Group.
Klöckner loss widens in Q1 but sees brighter quarter ahead
Klöckner & Co. logged a wider net loss in the first quarter on-year, but the Duisburg, Germany-based service center group expects higher shipments and sales in the upcoming three months.
Thyssenkrupp Materials Services adds Sinton stocking site
Thyssenkrupp Materials Services is continuing its expansion in North America. It announced the opening of a new steel service center in Sinton, Texas, to primarily serve the automotive, HVAC, and construction markets.
Majestic Steel opens Arkansas location on Nucor campus
Majestic Steel announced the completion of its flagship Majestic Steel Arkansas facility in Blytheville on the campus of Nucor Steel Hickman.
Olympic Steel profits fall 12% in Q1
Olympic Steel logged lower earnings in the first quarter of 2024, but the company said all three of its segments contributed to profitability.