Global Brass and Copper Holdings, Inc. (NYSE:BRSS) (“GBC” or the “Company”) today announced the results for the first quarter ended March 31, 2014.
First Quarter Operating Results
Volume for the first quarter of 2014 increased by 2.1% to 134.2 million pounds compared to 131.5 million pounds in the first quarter of 2013. The increase in volume was the result of higher demand in the building and housing, automotive, coinage and munitions end markets. These increases were partially offset by lower demand in the electronics/electrical components end market resulting from customers sourcing their finished products offshore, which resulted in reduced demand for brass rod in this end market. By segment, Olin Brass, Chase Brass, and A.J. Oster volume increased 1.7%, 1.6%, and 1.2% during the first quarter, respectively.
“Increasing volumes across the business coupled with ongoing momentum in Eco Brass, our lead-free product portfolio, drove first quarter performance,” said John Wasz, GBC’s President and Chief Executive Officer. “We continue to make disciplined investments to bolster our future growth, strengthen our industry leading product portfolio, optimize efficiencies in our supply chain and drive our continuous improvement initiatives. While we did experience some short-term weather-related disruptions and sub-par operational performance during the first quarter, we have great confidence in our business and the strategy we are executing to create shareholder value.”
Net sales for the first quarter of 2014 decreased by 0.3% to $443.8 million compared to $445.0 million in the first quarter of 2013. The decline in net sales was attributable to lower metal prices and a shift in product mix, partially offset by an increase in average selling prices, higher volume and as a result of higher sales of unprocessed metal. Adjusted sales, a non-GAAP financial measure which reflects the value added premium over metal replacement cost recovery, increased by 1.2% to $141.3 million for the first quarter of 2014 from $139.6 million for the same period of 2013. A reconciliation of net sales to adjusted sales is provided later in this press release.