Service Centers
AM Castle to Close 4 More Facilities
Written by Sandy Williams
October 31, 2013
AM Castle, a metals and plastics distributor, reported a net loss of $6.9 million for the third quarter 2013, compared to net income of $3.2 million in Q3 2012. Consolidated net sales were $253 million down from $304 million in 2012.
Metal sales in the third quarter were $220 million, a drop of 19.2 percent from a year ago due to lower sales volume and pricing. Tons sold per day dropped 15.7 percent from third quarter 2012.
The short term outlook for the metals segment is cautious said Scott Dolan, CEO of AM Castle & Co. The metals segment has little exposure to the automotive industry and the industrial market has been weak in mining equipment and heavy equipment sale. The aerospace market is showing signs of improving. Oil and gas market is seeing slower but predictable growth. Dolan noted tube sales have been stronger but bar softer.
Industrial sales are composed of 10-15 percent mining and heavy equipment including agriculture is 8-10 percent.
In an effort to reduce costs four facilities in addition to those announced at the beginning of the year will be closed beginning in 2013 and continuing through 2014. AM Castle will be consolidating facilities in Houston and Wichita as well as combining Oliver Steel Plate with Castle Metals Cleveland and Edmonton Tube with Castle Metals Edmonton (Alberta).
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Sandy Williams
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