Brass maker reports profits in Q1 2017

Brass maker reports profits in Q1 2017
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Schaumburg, Illinois-based Global Brass and Copper Holdings, Inc. (GBC) has reported increased sales volumes and income for the first quarter of 2017 compared with 2016’s first quarter. The company’s holdings include Olin Brass, Chase Brass and A.J. Oster.

GBC says it volume of metal sold in the first quarter of 2017 increased by 2 percent to 133.9 million pounds compared with 131.3 million pounds in the first quarter of 2016. It says Olin Brass “delivered strong first quarter volumes, as increased coinage volumes were partially offset by decreased munitions volumes.” Chase Brass continued to grow volumes “with key building and housing customers,” says GBC, while A.J. Oster’s volumes decreased 4.2 percent as it “grappled with a new ERP system,” according to the company.

“For the quarter, we experienced growth in both volumes and adjusted diluted earnings per share,” says John Wasz, GBC president and CEO. “Chase delivered profit growth resulting from improved volumes and pricing, and Olin Brass experienced increased demand in its end markets. A.J. Oster completed the implementation of its ERP [system] and ended the quarter with increased volumes and a larger than normal backlog,” he adds. “We also made progress on resolving our claim for insurance proceeds related to the 2016 hot mill outage at Olin Brass, collecting an advance payment of $3 million in April,” Wasz says.

GBC’s net sales for the first quarter of 2017 increased by 19.6 percent to $393.3 million from $328.9 million in the first quarter of 2016. The increase in net sales was primarily attributable to a boost in “pass-through commodity costs,” says the firm. Adjusted sales, which GBC describes as a non-GAAP (generally accepted accounting principles) financial measure that reflects the value-added premium over metal replacement cost recovery, increased only $3 million as compared with the prior year, the firm says.

The company’s net income for the first quarter was $17 million in 2017, or 77 cents per diluted share, compared to $12.2 million, or 57 cents per diluted share, in the first quarter of 2016.

Regarding its outlook for the rest of 2017, GBC says it expects:

• shipment volumes to range from 530 million pounds to 560 million pounds; and
• adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) that could range from $120 million to $130 million.

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Source: Recycling Today
Brass maker reports profits in Q1 2017
<![CDATA[Schaumburg, Illinois-based Global Brass and Copper Holdings, Inc. (GBC) has reported increased sales volumes and income for the first quarter of 2017 compared with 2016’s first quarter. The company’s holdings include Olin Brass, Chase Brass and A.J. Oster.   GBC says it volume of metal sold in the first quarter of 2017 increased by 2 percent to 133.9 million pounds compared with 131.3 million pounds in the first quarter of 2016. It says Olin Brass “delivered strong first quarter volumes, as increased coinage volumes were partially offset by decreased munitions volumes.” Chase Brass continued to grow volumes “with key building and housing customers,” says GBC, while A.J. Oster’s volumes decreased 4.2 percent as it “grappled with a new ERP system,” according to the company.   “For the quarter, we experienced growth in both volumes and adjusted diluted earnings per share,” says John Wasz, GBC president and CEO. “Chase delivered profit growth resulting from improved volumes and pricing, and Olin Brass experienced increased demand in its end markets. A.J. Oster completed the implementation of its ERP [system] and ended the quarter with increased volumes and a larger than normal backlog,” he adds. “We also made progress on resolving our claim for…