Print
Email
A. M. Castle & Co. (CAS) filed Quarterly Report for the period ended 2011-09-30.
A.m. Castle has a market cap of $288 million; its shares were traded at around $12.5 with a P/E ratio of 52 and P/S ratio of 0.3.
This is the annual revenues and earnings per share of CAS over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CAS.
Highlight of Business Operations:
Consolidated net sales were $294.9 million, an increase of $50.0 million, or 20.4%, compared to the third quarter of 2010. Higher net sales in the third quarter of 2011 were primarily the result of higher shipping volumes in the metals and plastics markets. Metals segment sales during the third quarter of 2011 of $264.4 million were $46.4 million, or 21.3%, higher than the same period last year. Average tons sold per day increased 20.3% compared to the prior year quarter. The increase in sales volume was driven primarily by alloy bar, carbon and alloy plate, SBQ bar and stainless products. Key end-use markets that experienced increased demand in the third quarter include oil and gas, mining and heavy equipment and general industrial markets.Cost of materials (exclusive of depreciation and amortization) during the third quarter of 2011 was $221.7 million, an increase of $39.8 million, or 21.9%, compared to the third quarter of 2010. Material costs for the Metals segment for the third quarter of 2011 was $200.2 million or 75.7% as a percent of net sales compared to $163.6 million or 75.0% as a percent of net sales for the third quarter of 2010. Third quarter 2011 results include a $1.6 million charge associated with the mark-to-market adjustment for commodity hedges. The Company did not have any commodity hedges in place in 2010. The Metals segment recorded LIFO expense of $3.8 million in third quarter of 2011 and $2.0 million in the third quarter of 2010. Material costs for the Plastics segment were 70.5% as a percent of net sales for the third quarter of 2011 as compared to 68.0% for the same period last year.
The Company recorded income tax expense of $1.3 million for the quarter ended September 30, 2011 compared to less than $0.1 million tax expense for the same period last year. Included in the $1.3 million was $0.5 million of tax benefits due to the expiration of the statutes of limitation for uncertain tax positions taken in prior years. The Company’s effective tax rate is expressed as ‘Income tax expense or benefit’ (which includes tax expense on the Company’s share of joint venture earnings) as a percentage of ‘Income (loss) before income taxes and equity in earnings of joint venture.’ The effective tax rate for the quarters ended September 30, 2011 and 2010 were 64.9% and (2.8)%, respectively. The increase in the effective tax rate for the third quarter of 2011 compared to the third quarter of 2010 was primarily the result higher joint venture earnings.
Consolidated net sales were $850.2 million, an increase of $142.1 million, or 20.1%, compared to the same period last year. Higher net sales were primarily the result of higher shipping volumes and increased pricing in the metals and plastics markets. Metals segment sales during the first nine months of 2011 of $761.2 million were $130.2 million, or 20.6%, higher than the same period last year. Average tons sold per day increased 18.7% compared to the prior year period. The increase in sales volume was driven primarily by alloy bar, carbon and alloy plate and SBQ bar products. Key end-use markets that experienced increased demand in the first nine months of 2011 include oil and gas, mining and heavy equipment and general industrial markets.
Cost of materials (exclusive of depreciation and amortization) during the first nine months of 2011 were $631.6 million, an increase of $102.1 million, or 19.3%, compared to the same period last year. Material costs for the Metals segment for the first nine months of 2011 were $569.6 million or 74.8% as a percent of net sales compared to $477.0 million or 75.6% as a percent of net sales for the first nine months of 2010. Material costs for 2011 include a $1.6 million charge associated with the mark-to-market adjustment for commodity hedges. The Company did not have any commodity hedges in place in 2010. Material costs as a percentage of net sales were lower in the first nine months of 2011 than 2010 as the demand environment continued to improve throughout the first nine months of 2011. The improved demand environment provided for a better pricing environment compared to the first nine months of 2010. As market prices for many products increased during the first nine months of 2011, the Company was able to leverage its inventory position, which also contributed to the reduction in material costs as a percentage of net sales compared to the prior year period. The Metals segment recorded LIFO expense of $10.7 million in 2011 compared to $7.0 million during the prior year period. Material costs for the Plastics segment were 69.7% and 68.1% as a percent of net sales for the first nine months of 2011 and 2010, respectively. Management believes that consolidated material costs as a percentage of net sales will be comparable to first nine months of 2011 levels for the balance of 2011.
Subscribe RSS
