A. M. Castle & Co. (CAS), a distributor of specialty metal and plastic products, said Tuesday that it expects to report a wider-than-expected loss for the third quarter, citing continued weakness from key end markets.
Following the announcement, shares of the company slid over 5 percent in after-hours trading on the New York Stock Exchange.
A. M. Castle expects to report third-quarter net loss of $0.28 to $0.32 per share. On average, five analysts polled by Thomson Reuters expect a loss of $0.07 per share. Analysts' estimates typically exclude special items.
The Oak Brook, Illinois-based company expects third-quarter revenue of $250 million to $255 million, while analysts estimate revenue of $278.30 million.
"Challenging industry conditions and the late cycle nature of the Company's end markets have weighed on overall results," the company said in a statement.
Another factor that impacted revenue was the overall softness in market selling prices.
The company said that it expects cost savings from restructuring initiatives executed in the first half of 2013 to be in line with expectations.
A. M. Castle will release its third-quarter financial results on October 29.
Shares of the company closed Tuesday at $16.39, up $0.19 or 1.17%, on the NYSE. In after hours, the stock dropped $0.89 or 5.43% at $15.50.
by RTT Staff Writer
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