Service Centers
October 10, 2013
A.M. Castle Preliminary Results Lower than Expected
Written by Sandy Williams
Global distributor A.M. Castle & Co. expects a third quarter loss of 28 to 32 cents per share and EBITDA between $4 million and $5 million according to preliminary results announced on Oct. 8. Sales are expected to range between $250 million and $255 million for the quarter.
Projections were well below analyst estimates of losses ranging between 7.0 percent (Thomson Reuters poll) and 20 percent (Key Banc), prompting adjustments to the market estimates for the quarter and year. Analysts suggested A.M. was hurt by increased metal costs that were not passed through to customers and lower volume sales.
