IBC Advanced Alloys has posted financial results for the quarter and six-months ended December 31, 2024. Sales at IBC’s continuing operations (its Copper Alloys division) for the six months ended December 31, 2024 decreased by 29.4% compared to the same period in the previous year. This decline was primarily driven by two large, non-recurring orders in the comparable period of 2024, totalling approximately US$3.2 million and by a slight dip in market demand.
The year-on-year decrease in gross profit and gross margin in the Copper Alloys division was attributed to higher labour and overhead costs as a proportion of revenue compared to the same quarter last year.
On a consolidated basis, operating income and adjusted earnings before interest, taxes, depreciation and amortisation (Adjusted EBITDA) for the six months ended December 31,2024, were lower year on year, primarily due to the Engineered Materials (EM) division continuing to incur costs after its discontinuation.
In addition to the lower margin from the Copper Division compared to the previous year, the consolidated loss for the six months ended December 31, 2024, of US$2.6 million was mainly due to ongoing closing costs at the EM division, higher-than-usual corporate SG&A expenses (resulting from the EM division closure), and interest costs. IBC expects the EM division’s closing costs and SG&A expenses to decrease once all closure activities are completed in December 2024. As of January 1, 2025, the only ongoing EM division costs are related to the premises’ lease commitment.
“IBC’s Copper Alloys division experienced slightly softer market demand in the first half of the fiscal year, although the majority of the relative decline in sales during this period was due to two relatively large, non-recurring sales we had in the same period last year,” said Mark A. Smith, Executive Chairman and CEO of IBC. “We observed some increased uncertainty in the market due to the 2024 election period, as did many other industries, but we expect this to resolve over the balance of calendar year 2025.”
IBC anticipates a charge to operations regarding the discontinuation of the Engineered Materials division’s operations and is negotiating with the building landlord to minimise such costs.
