Top US brass maker reports improved profits

Schaumburg, Illinois-based Global Brass and Copper Holdings Inc. (GBC) has reported results for the second quarter of 2018 that includes net income of $21 million for the quarter, or 94 cents per share, compared with $15.7 million, or 71 cents per share, in the second quarter of 2017. GBC also has announced a quarterly dividend of 9 cents per share.

GBC describes itself as a converter, fabricator, processor and distributor of specialized nonferrous products in North America. The company engages in metal melting (including scrap) and casting, rolling, drawing, extruding, welding, stamping and coating to fabricate finished and semi-finished alloy products.

Portfolio companies of GBC include Chase Brass, Olin Brass and A.J. Oster, which acquired aluminum service center Alumet Supply from Unimet Metal Supply Inc. in November 2017.

GBC says its overall metals production volume for the second quarter of 2018 increased by 10,650 tons, or 16.9 percent, to 73,750 tons. That compares withoutput of 63,100 tons in the second quarter of 2017. The increase in volumes includes 7,700 tons of incremental volume from A.J. Oster’s acquisition of Alumet.

GBC indicates A.J. Oster grew base volumes in the automotive and electronics and electrical components markets. Olin Brass experienced increased demand in the munitions, automotive and coinage markets. Chase Brass’s electronics and electrical components market volumes increased, but were offset by volume declines in the industrial and machinery equipment and building and housing markets.

“Global Brass and Copper’s business continues to strengthen, and we are pleased with our second quarter operating results,” says John Wasz, GBC president and CEO. “Olin Brass benefited from favorable metal mix and sourcing and is continuing to improve profitability through effective product pricing and operational cost management. A.J. Oster results benefited from the integration of the Alumet business and improved service metrics. Despite some operational challenges, Chase Brass improved financial performance with better metal margins and improved raw material sourcing.”

GBC’s net sales for the second quarter of 2018 increased to $459.4 million from $374.8 million in the second quarter of 2017. The increase was primarily attributable to increased commodity prices, the addition of Alumet and increased volumes, says the firm.

Year to date, GBC’s net income of $36.8 million is up by 10.8 percent compared to the $33.2 million it earned in the first half of 2017.