Universal Stainless Reports Preliminary Third Quarter 2013 Results
10/28/2013 - Universal Stainless & Alloy Products, Inc. said that, based on preliminary results, it expects net sales for the third quarter of 2013 to approximate US$48 million.
The company also expects to incur a net loss of approximately US$1.7 million, or US$0.24 to US$0.26 per diluted share, for the third quarter of 2013.
Cash flow from operations is expected to increase to approximately US$11 million for the third quarter of 2013, reflecting the Company's progress in reducing both inventory and long-term debt levels.
Chairman, president and CEO Dennis Oates commented: "There was welcome improvement in our sales from the 2013 second quarter reflecting sequential growth in shipment volume to all our end markets with the exception of heavy equipment. At the same time, a shift in sales mix, lower surcharges and reduced fixed cost absorption negatively impacted our profitability. We did see some pick-up in order entry starting in September and into October. We expect these increased orders to mostly benefit early 2014 as we still see additional short term inventory destocking and normal year-end inventory management occurring through the fourth quarter."
Cash flow from operations is expected to increase to approximately US$11 million for the third quarter of 2013, reflecting the Company's progress in reducing both inventory and long-term debt levels.
Chairman, president and CEO Dennis Oates commented: "There was welcome improvement in our sales from the 2013 second quarter reflecting sequential growth in shipment volume to all our end markets with the exception of heavy equipment. At the same time, a shift in sales mix, lower surcharges and reduced fixed cost absorption negatively impacted our profitability. We did see some pick-up in order entry starting in September and into October. We expect these increased orders to mostly benefit early 2014 as we still see additional short term inventory destocking and normal year-end inventory management occurring through the fourth quarter."
