A. M. Castle Loss Widens, Yet Tops Estimates; Stock Up - Update

(RTTNews) - Specialty metal and plastic products distributor A. M. Castle & Co. (CAS), Tuesday reported a second-quarter loss that widened from a year ago, due to lower sales and gross margins, as well as restructuring expenses.

Nevertheless, excluding items, the company posted a modest adjusted profit that topped Wall Street estimates, while sales missed expectations. A. M. Castle shares are currently up over 8 percent on the New York Stock Exchange.

"While our top-line performance trailed industry benchmarks due to the late cycle nature of our business, I am pleased with our execution during the quarter," said CEO Scott Dolan.

The Oak Brook, Illinois-based company reported a quarterly net loss of $3.8 million or $0.16 per share, compared with a net loss of $3 million or $0.13 per share last year.

Results for the quarter included restructuring charges of $5.6 million.

Excluding items, adjusted earnings for the quarter were $0.4 million or $0.02 per share, compared with $2.6 million or $0.11 per share in the prior year. On average, five analysts polled by Thomson Reuters expected a loss of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter were lower at $273 million, down from $329 million a year ago. Three analysts had a consensus revenue estimate of $300 million for the quarter.

Metals segment sales of slid 20.7 percent year-over-year, on lower volumes, while plastics segment sales were up 5.6 percent.

Results for the quarter were also impacted by interest expense of $10 million, almost unchanged from a year ago.

During the quarter, the company completed its restructuring activities including the consolidation of five warehouse facilities.

The company's stock is trading at $17.16, up $1.30 or 8.20%, on a volume of 0.2 million shares.