CHICAGO Specialty metals
distributor A.M. Castle & Co. fell further into the red in
the first quarter.
The Oak Brook, Ill.-based
company posted a net loss of $10.62 million for the three
months ended March 31 vs. a loss of $4.3 million in the same
period last year and more than the $9.75-million loss for all
of 2012, on sales that slid 19.3 percent to $292.71
"The markets were a bit softer
than we had anticipated during the first quarter," president
and chief executive officer Scott Dolan said in a statement
companys metals segment posted first-quarter sales of
$258.4 million, down 19.6 percent on a per-day basis compared
with a year earlier. Tons sold per day were down 20 percent in
the same comparison as virtually all of Castles key
end-use markets experienced softer demand due to weaker
conditions in the overall economy.
Castle continues to restructure
operations with the goal of improving operating efficiency and
customer satisfaction and reducing costs. Dolan said that plant
consolidation activities are ahead of schedule, and inventory
was reduced by more than $33 million on a replacement-cost
Castles leadership has
targeted $33 million of annual operating income improvement as
part of the restructuring plan it announced in January, and
expects to realize $20 million of that goal this year.
"As we move forward with an
increased focus on revenue growth and market penetration, I
will be taking over direct responsibility for the commercial
teams," Dolan said.
After 12 years with the company,
Blain Tiffany is stepping down as chief commercial officer to
pursue other opportunities.