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Global Brass and Copper Holdings, Inc. (NYSE:BRSS) (“GBC” or the “Company”) today announced the results for the third quarter ended September 30, 2013.
“We delivered another quarter of solid performance driven by improving conditions across several of our key end markets including building and housing, coinage, automotive and munitions,” said John Walker, GBC’s Chief Executive Officer. “Longer-term, we are particularly pleased with our Eco Brass line that continues to gain momentum leading up to the legislation taking effect in January 2014 that requires the reduction of lead content in all drinking water plumbing devices. We continue to invest in long-term initiatives, which will improve our overall operating effectiveness and growth across the entire Company.”
Third Quarter Operating Results
Volume for the third quarter of 2013 increased by 6.1% to 132.0 million pounds compared to 124.4 million pounds in the third quarter of 2012. The increase in volume was the result of higher demand in the building and housing, munitions, automotive and coinage end markets. These increases were partially offset by lower demand in the electronics/electrical components end market resulting from increased competition from foreign imports. Volume growth in the building and housing end market was also dampened by foreign competition. By segment, Olin Brass, Chase Brass, and A.J. Oster volume increased 4.6%, 1.5%, and 4.3% during the third quarter, respectively.
Net sales for the third quarter of 2013 increased 11.5% to $439.3 million compared to $394.0 million in the third quarter of 2012. The improvement in net sales was attributable to an increase in volume, higher average selling prices and sales of unprocessed metal, which were partially offset by lower metal prices. Adjusted sales, a non-GAAP revenue measure which reflects the value added premium over metal replacement cost recovery, increased 6.7% from $130.9 million to $139.7 million. A reconciliation of net sales to adjusted sales is provided later in this press release.