Specialty metals distributor and processor A.M. Castle &
Co. posted a net loss of nearly $3.8 million in the second
quarter, up 27.6 percent from a $2.98-million loss in the same
period last year.
The Oak Brook,
Ill.-based company posted a $14.42-million net loss in the
first half of the year, almost double a $7.28-million loss a
Castle has recorded
annual losses for the past five years: $17.1 million in 2008,
$26.9 million in 2009, $5.6 million in 2010, $1.8 million in
2011 and $9.7 million in 2012.
restructuring has improved the companys cost structure,
which should benefit bottom-line results in the foreseeable
future, chief executive officer Scott Dolan said July 30.
of $273.41 million were 17 percent below a year earlier, while
first-half sales of $566.12 million were down 18.2 percent.
"While our top-line
performance trailed industry benchmarks due to the late-cycle
nature of our business," Dolan said, the company did continue
to generate strong cash flow. "We achieved structural cost
improvements and started to see those cost improvements benefit
our financial results later in the second quarter."
Castle has reduced the
value of its inventory by 18.7 percent since Dec. 31 to June
30. "We achieved the $25 million replacement cost basis
inventory reduction that we had targeted for the second
quarter," Dolan said.
metals business recorded net sales of $239.5 million in the
second quarter, down 20.7 percent from a year earlier and 10.2
percent lower than the first three months of this year on a
per-day basis, primarily due to lower volumes.
Looking ahead, Dolan
said the restructuring and continuous improvement should
"transform Castle into a more profitable enterprise."