Service Centers
AM Castle Restructuring Completed
Written by Sandy Williams
May 9, 2016
AM Castle reported a net loss of $44.8 million for first quarter 2016. Net sales were down 13.1 percent year over year to $163.8 million. A significant portion of sales, $27.1 million, were from the liquidation of the company’s energy related inventory from the recent closure of the Houston and Edmonton facilities. Excluding this, net sales were down 27.5 percent, or $51.8 million, from a year ago. AM Castle attributed most of the decrease to a 27.6 percent drop in tons sold per day, along with a slight decrease in average selling price.
Besides the closure of the energy related operations in Houston and Edmonton, AM Capital also completed the sale of its Total Plastics, Inc. subsidiary in the first quarter.
President and CEO Steve Scheinkman commented, “We began the second quarter as a leaner, more focused A.M. Castle. By completing our network-level restructuring, taking important steps towards the completion of our refinancing activities, and completing the sale of TPI and substantially all of our energy-related assets in the first quarter of 2016, we entered the second quarter of 2016 with an unobstructed focus on our business. While we continue to further develop our commercial platform, we also remain committed to continuously improving the cost structure. We have already entered in long-term agreements with a number of top-tier customers, many of which are new customers, as well as extensions of existing business with add-on volumes. We believe that we are now positioned to take advantage of opportunities that will be available to us as market cycles begin to turn.”
Sandy Williams
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