Global Brass & Copper (BRSS) Tops Q2 EPS by 15c, Revenues Miss

Global Brass & Copper (NYSE: BRSS) reported Q2 EPS of $0.97, $0.15 better than the analyst estimate of $0.82. Revenue for the quarter came in at $459.4 million versus the consensus estimate of $478.1 million.

Highlights

• Volume of 147.5 million pounds, an increase of 16.9% year-over-year;
• Net income and diluted earnings per common share increased $5.3 million to $21.0 million and $0.23 per share to $0.94 per share, respectively;
• Second quarter 2018 earnings include Alumet, while 2017 earnings include $4.4 million related to recovery of insurance proceeds;
• Adjusted EBITDA increased $2.8 million to $39.6 million year-over-year;
• Adjusted diluted earnings per common share increased to $0.97 from $0.80 in the prior year period;
• The Company declares a quarterly dividend of $0.09 per share, a 50% increase from its previous $0.06 per share rate;
• The Company enacts a $35 million share repurchase program; and
• The Company reaffirms 2018 full-year guidance.

“Global Brass and Copper’s business continues to strengthen and we are pleased with our second quarter operating results. Our supply chain initiatives, continued focus on driving profitable growth, and the advancement of our strategic initiatives helped drive our strong second quarter results. Olin Brass benefitted from favorable metal mix and sourcing and is continuing to improve profitability through effective product pricing and operational cost management. A.J. Oster results benefited from the integration of the Alumet business and improved service metrics. Despite some operational challenges, Chase Brass improved financial performance with better metal margins and improved raw material sourcing. We refinanced our term loan debt during the second quarter, which reduced our interest rate by 75 basis points, and are utilizing our strong cash position to return value to our shareholders by increasing our quarterly dividend and initiating a $35.0 million share repurchase program,” said John Wasz, GBC's President and Chief Executive Officer.

For earnings history and earnings-related data on Global Brass & Copper (BRSS) click here.

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