Schaumburg, Illinois-based Global Brass and Copper Holdings Inc. (GBC) has reported increased output and sales for the third quarter ending Sept. 30, 2018, and announced net income of $14.8 million for the quarter, a 20.3 percent increase from its 2017 third quarter.
The company, which subsidiaries include red metals scrap buyers Olin Brass and Chase Brass, says it produced 142.2 million pounds (71,100 tons) of metallics, an increase of 19.1 percent compared to its third quarter of 2017. GBC says 2018 third quarter revenue and volume figures include contributions from aluminum distributor Alumet, which GBC’s A.J. Oster subsidiary acquired Nov. 1, 2017.
GBC’s EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter decreased by $500,000 to $29.6 million compared with the previous year’s third quarter.
Regarding its three subsidiaries in the third quarter of 2018, GBC says A.J. Oster grew its base volumes in the automotive and electronics/electrical components markets, Olin Brass experienced increased demand in the munitions and coinage markets and Chase Brass had increased transportation and industrial machinery and equipment volumes.
“We achieved third-quarter results that reflect growth in volumes as well as adjusted diluted earnings per share, which benefited from changes in the statutory rates and tax strategies that added significantly to our bottom line,” says John Wasz, GBC president and CEO. “Adjusted EBITDA for the quarter was impacted by unfavorable mix along with production related issues. We continue to focus on delivering superior quality and service to our customers while advancing our balanced book, strategic pricingand asset management practices.”
For the remainder of the year, Wasz says he anticipates shipment volumes to range from 570 million pounds (285,000 tons) to 610 million pounds (305,000 tons) and an adjusted EBITDA ranging from $127 million to $137 million.