Global Brass and Copper Holdings, Inc. (NYSE:BRSS) (“GBC” or the “Company”) today announced the results for the quarter ended June 30, 2014.
Second Quarter Operating Results
Volume for the second quarter of 2014 decreased by 2.6% to 134.8 million pounds compared to 138.4 million pounds in the second quarter of 2013. The decrease in volume was primarily attributable to lower demand in the electronics/electrical components end market primarily resulting from a customer sourcing their finished products offshore, which negatively impacted demand for brass rod in this end market. Additionally, the decrease in volume was due to lower demand in the building and housing end market as a consequence of customer inventory adjustments resulting from the inclement weather during the first quarter of 2014. The decline in volume was also impacted by lower shipments to the munitions end market resulting from operational issues which adversely impacted production at Olin Brass. The decrease in volume was partially offset by higher demand in the transportation and coinage end markets. By segment, Olin Brass, Chase Brass, and A.J. Oster volumes decreased 2.2%, 2.2%, and 2.9% during the second quarter of 2014, respectively, as compared to the same period in 2013.
“While our second quarter results reflect a near-term reduction in shipments, notably within our electronics/electrical components and munitions end markets, our volume in the first half of 2014 remained relatively flat as compared to the same period in 2013. In the second half of 2014, we anticipate volume growth within select end markets and have confidence in the underlying strength of our business to drive growth and profitability. Furthermore, we continued to execute on key initiatives during the quarter, such as advancing our Eco Brass and CuVerro offerings, and took further actions to implement quality, cost and productivity improvements to enhance our operational performance through the balance of 2014 and drive long-term operating performance across the enterprise,” said John Wasz, GBC’s President and Chief Executive Officer.