IBC Advanced Alloys Reports First Fiscal Quarter 2016 Results and Provides Update
First Quarter Highlights
Revenue of $4.2 million, down 9% from the September 30, 2014 quarter
Engineered Materials revenue of $1.0 million, up 56% from the comparative period.
Copper Alloys revenue of $3.2 million, down 20% from the comparative period
Loss for the period of $721,000 compared to $519,000 in 2014.
Commentary and Corporate Update
aTP- Arab tourism portal- IBC’s first quarter results show the result of Engineered Materials strengthening operations, with loss before other items (“operating loss”) improving by $453,000 compared to the comparative quarter. This gain was offset by a softening of Copper Alloys; its operating income (loss) was down by $471,000. Engineered Materials’ strong performance is attributable production and delivery of F-35 components, while Copper Alloys has seen a weaker order intake. Copper Alloys’ performance was adversely affected by soft resource markets which have reduced demand for equipment and fixtures made from alloys that we produce.
Anthony Dutton, IBC’s chief executive officer commented “It was very gratifying to see the strong performance of Engineered Materials, which reflects both a strong order book and the operational improvements we have made in the last three months. The sales decline in Copper Alloys reflects sector-wide trends to which we are not immune. We are developing our business plan to reflect changes in our market and expect to see improvements within fiscal 2016.”
Engineered Materials
The increased sales and gross profit in our Engineered Materials division is primarily attributable to deliveries of finished components under its LRIP 7/8 contract with Lockheed Martin. We expect that this contract will continue to drive revenues through to our third fiscal quarter. In the interim, we will generate revenues from the LRIP 9/10 contract beginning in our second fiscal quarter. Engineered Materials is still operating below capacity and will benefit from any additional contracts the division secures.
Copper Alloys
Copper Alloys operating results reflected anemic order intake that was exacerbated by a decline in copper prices and very competitive market conditions. These conditions have continued into the second fiscal quarter.
