A. M. Castle Expects Weak Q3 Results

(RTTNews) - A. M. Castle & Co. (CAS) Tuesday said it expects third quarter financial performance to come in below second quarter adjusted results. Following the news, shares of the company fell five percent in after hours trade.

The company expects third-quarter earnings to be a net loss of about $0.28 to $0.32 per share. On average, five analysts polled by Thomson Reuters currently estimate loss of about $0.07 per share for the third quarter. Analysts estimates typically exclude one-time items.

The preliminary results for the third quarter indicate lower revenue as a result of continued weakness from key end markets. Challenging industry conditions and the late cycle nature of the company's end markets have weighed on overall results.

The company expects third-quarter revenues of between $250 million and $255 million. Analysts currently estimate revenues of $278.3 million for the quarter.

"We remain focused on our commitment to continuous improvement and recognizing cost efficiencies," said CEO, Scott Dolan. "We expect cost savings related to restructuring initiatives executed in the first half of 2013 to be in line with expectations and the cost structure to perform as anticipated."

CAS closed Tuesday's trading at $16.39, up $0.19 or 1.17% on the NYSE. The stock, however, dropped $0.89 or 5.43% in the after hours trade.