Global Brass and Copper Holdings, Inc. (NYSE:BRSS) (“GBC” or the “Company”) today announced the results for the fourth quarter and full year ended December 31, 2013.
“Driven by strong shipment volumes in Olin Brass and improving conditions across a number of our end markets, the fourth quarter marked another period of improved performance. During 2013, we advanced our many strategic initiatives highlighted by increasing shipments of our Eco Brass product portfolio ahead of the January 2014 legislation, which requires the reduction of lead content on the wetted surfaces of plumbing devices,” said John Wasz, GBC’s President and Chief Executive Officer. “Despite pockets of uncertainty in the global markets, we are confident in the long-term fundamentals of the business and our ability to drive sustainable, profitable growth in 2014.”
Fourth Quarter Operating Results
Volume for the fourth quarter of 2013 increased by 3.4% to 121.1 million pounds compared to 117.1 million pounds in the fourth quarter of 2012. The increase in volume was the result of higher demand in the building and housing, automotive, munitions 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 and customers sourcing their finished products offshore, which resulted in reduced demand for brass rod in the United States. Volume growth in the building and housing end market was also dampened by foreign competition. By segment, Olin Brass and A.J. Oster volume increased 7.3% and 2.6% during the fourth quarter, respectively, while Chase Brass volume decreased 2.3%.
Net sales for the fourth quarter of 2013 increased by 4.2% to $412.8 million compared to $396.2 million in the same period of 2012. The improvement in net sales was attributable to an increase in volume and as a result of higher sales of unprocessed metal, which were partially offset by lower metal prices and by lower average selling prices. Adjusted sales, a non-GAAP financial measure which reflects the value added premium over metal replacement cost recovery, increased 4.4% to $127.7 million for the fourth quarter of 2013 from $122.3 million for the same period of 2012. A reconciliation of net sales to adjusted sales is provided later in this press release.