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
Miami Valley Steel Service announces personnel changes
The Piqua, Ohio-based service center announced the retirement of its CFO and other personnel changes.
October service center shipments and inventories report
Flat rolled = 63.4 shipping days of supply Plate = 52.4 shipping days of supply Flat rolled shipments and inventories Flat-rolled steel supply at US service centers remains seasonally high. October inventories increased after edging lower in September – a dynamic driven largely by disappointing demand. October’s report reflects lower demand and stable lead times […]
Russel Metals to acquire Tampa Bay Steel
Tampa Bay Steel, a Florida-based steel distributer and metal processer, generated average annual revenues of about US$115 million
Friedman swings to loss amid ‘challenging’ market
Friedman Industries swung to a loss in its fiscal second quarter ended Sept. 30 amid “challenging” business conditions.
Worthington Steel taps Larivey as flat-rolled steel president
Worthington Steel has named Cliff Larivey as the company’s president of flat-rolled steel processing, effective Dec. 1. He will replace Jeff Klingler, who had been performing the role for the past year.