GBC boosts metals shipments on Alumet volumes

Global Brass and Copper Holdings (GBC) boosted its metal shipments by 7.4pc in the first quarter, largely reflecting volumes from its recently acquired Alumet unit.

Volumes shipped rose to 143.8mn lbs in the first quarter from 133.9mn lbs a year earlier, the company said. The increase included 14.2mn lbs of incremental volume from its acquisition of aluminum coil distributor Alumet in November 2017.

Illinois-based GBC reaffirmed its full-year guidance for shipments of 570mn-610mn lbs this year after shipments in 2017 fell by 2.3pc to 507.3mn lbs.

Total sales rose by 12.5pc to $472mn in the latest quarter from $420mn a year earlier. The gain was largely attributable to an increase in the metal cost recovery component stemming from higher metal prices and Alumet activity.

Profit for the quarter was $15.8mn, including Alumet unit profit, compared with profit of $17.5mn a year earlier that included $3mn related to recovery of insurance proceeds.

Of GBC's three main segments, AJ Oster grew volumes in the automotive, electronic/electrical components and stamping markets. AJ Oster and Chase Brass both reported less demand in the building and housing market. Olin Brass grew its volumes in the reroll market, which was more than offset by declines in the munitions, coinage and automotive markets.

GBC is a fabricator, convertor, processor and distributor of specialized nonferrous products in North America. It sells under the Olin Brass, Chase Brass and AJ Oster brand names.