Global Brass And Copper Holdings, Inc. Reports Third Quarter 2016 Financial Results

Global Brass and Copper Holdings, Inc. (NYSE:BRSS) ("GBC" or the "Company") today announced the results for the third quarter ended September 30, 2016.

Third Quarter Operating Results

Volume for the third quarter of 2016 increased by 5.5% to 137.0 million pounds compared to 129.8 million pounds in the third quarter of 2015. Olin Brass's volumes increased as some orders from the second quarter shipped in the third quarter due to the production outage experienced during the second quarter. As it pertains to Chase, we also grew our volumes with key building and housing customers, but continue to face headwinds in the industrial machinery and equipment sector.

"As predicted last quarter, the second quarter production outage at Olin Brass pushed some volumes from the second quarter into the third quarter. We also had solid volumes at A.J. Oster, and continued to strengthen our relationships with key customers in our Chase business," said John Wasz, GBC's President and Chief Executive Officer.

"Similar to last quarter, we generated significant cash flows resulting from continued strong operational performance. While we are experiencing lower than anticipated fourth quarter volumes, we are encouraged by the momentum being generated by our various business improvements, including organic growth initiatives, and remain focused on driving profitable growth, generating strong cash flows, and strengthening our competitive position. Furthermore, we believe we are well-positioned to capitalize on attractive acquisition opportunities as they materialize," Mr. Wasz concluded.

Net sales for the third quarter of 2016 decreased to $349.1 million from $367.7 million in the third quarter of 2015. The decline in net sales was primarily attributable to a decrease in our pass-through commodity costs. Adjusted sales, our non-GAAP financial measure that reflects the value added premium over metal replacement cost recovery, increased $8.3 million as compared to the prior year, primarily attributable to the aforementioned volume increase. A reconciliation of net sales to adjusted sales is provided later in this press release.

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