Global Brass and Copper Holdings, Inc. (NYSE:BRSS) (“GBC” or the “Company”) today announced the results for the second quarter ended June 30, 2013.
“The second quarter marked a transformative period for GBC as we brought our company to the public markets with the completion of our IPO in May,” said John Walker, GBC’s Chief Executive Officer. “Along with this successful offering, we delivered improved financial results for the second quarter, driven by growing demand in the building and housing, munitions and coinage end markets. We also increased shipments of our lead-free brass rod product offering and made progress with our early marketing efforts for our anti-microbial product, CuVerro, in the growing healthcare industry. With our diverse portfolio and strong positions in high growth end markets, we believe that we are well positioned to drive long-term growth and profitability.”
Second Quarter Operating Results
Volume for the second quarter of 2013 increased by 7.5% to 138.4 million pounds compared to 128.8 million pounds in the second quarter of 2012. The increase in volume was the result of higher demand in the building and housing, munitions and coinage end markets. These increases were partially offset by lower demand in the electronics/electrical components end market and competition from foreign imports. By segment, Olin Brass and Chase Brass volume increased 7.4% and 5.8% during the second quarter, respectively, while A.J. Oster volume decreased 2.8%.
Net sales for the second quarter of 2013 increased 10.7% to $461.5 million compared to $417.0 million in the second quarter of 2012. The improvement in net sales was attributable to an increase in volume and sales of unprocessed metal, which were partially offset by lower metal prices and lower average sales prices. Adjusted sales, a non-GAAP revenue measure which reflects the value added premium over metal replacement cost recovery, increased 5.6% from $134.7 million to $142.3 million. A reconciliation of net sales to adjusted sales is provided later in this press release.