A.M. Castle Announces Third Quarter Preliminary Results
Third quarter earnings are expected to be a net loss of approximately US$0.28 to US$0.32 per diluted share and EBITDA is expected to range between US$4 million to US$5 million. The company anticipates that its third quarter adjusted net loss and adjusted EBITDA results will be comparable to these preliminary estimates.
The preliminary results for the third quarter indicate lower revenue as a result of continued weakness from key end markets. Challenging industry conditions and the late cycle nature of the company's end markets have weighed on overall results, resulting in softer than expected third quarter revenue performance ranging between US$250 million to US$255 million. The company has continued to maintain its overall gross profit margin levels, but overall softness in market selling prices was also a factor in lower sales and earnings levels for the third quarter.
"We remain focused on our commitment to continuous improvement and recognizing cost efficiencies," said CEO, Scott Dolan. "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. Inventory reductions and cash generation results remain intact despite lower volume levels, demonstrating the success of our cost reduction activities earlier this year. With our new Chief Commercial Officer in place, we will continue to focus on improving our commercial and sales execution, which is still in the early stages, such that our business should perform better during soft markets and be well positioned as market activity improves in the future."
The company will release its 2013 third quarter financial results on Tuesday, 29 October 2013.
Founded in 1890, A. M. Castle & Co. is a global distributor of specialty metal and plastic products and supply chain services, principally serving the producer durable equipment, oil and gas, commercial aircraft, heavy equipment, industrial goods, construction equipment, retail, marine and automotive sectors of the global economy. Its customer base includes many Fortune 500 companies as well as thousands of medium and smaller-sized firms spread across a variety of industries. Within its metals business, it specializes in the distribution of alloy and stainless steels; nickel alloys; aluminum and carbon. Through its wholly-owned subsidiary, Total Plastics, Inc., the company also distributes a broad range of value-added industrial plastics. Together, Castle and its affiliated companies operate out of more than 50 locations throughout North America, Europe and Asia.