Service Centers
May 9, 2016
AM Castle Restructuring Completed
Written by Sandy Williams
AM Castle reported a net loss of $44.8 million for first quarter 2016. Net sales were down 13.1 percent year over year to $163.8 million. A significant portion of sales, $27.1 million, were from the liquidation of the company’s energy related inventory from the recent closure of the Houston and Edmonton facilities. Excluding this, net sales were down 27.5 percent, or $51.8 million, from a year ago. AM Castle attributed most of the decrease to a 27.6 percent drop in tons sold per day, along with a slight decrease in average selling price.
Besides the closure of the energy related operations in Houston and Edmonton, AM Capital also completed the sale of its Total Plastics, Inc. subsidiary in the first quarter.
