IBC's Massachusetts Division Completes Final Contract Work
IBC Advanced Alloys Corp. (TSX-V:IB, OTCQB:IAALF) has announced the completion of final contract work and discontinuation of operations at its Massachusetts-based beryllium-aluminum alloy facility. The company is now focusing on growing its Copper Alloys division in Franklin, Indiana, anticipating improved free cash flow from this strategic shift.
Since October 2022, the Copper Alloys division has seen favorable trends in revenues and gross profit, largely due to the consolidation of operations into one plant. The division operates a vertically integrated copper alloy production facility in Indiana, which has shown improved performance since navigating COVID-related market disruptions and completing facility modernization in 2022.
CEO Mark A. Smith cited strong demand for copper and copper alloys, with worldwide production up over 25% in ten years, as a key factor in this strategic decision. The company expects to incur charges related to the Massachusetts plant closure but is negotiating to minimize costs.
IBC Advanced Alloys Corp. (TSX-V:IB, OTCQB:IAALF) ha annunciato il completamento dei lavori finali del contratto e la cessazione delle operazioni presso la sua struttura di leghe di berillio-alluminio in Massachusetts. L'azienda si sta ora concentrando sulla crescita della sua divisione Leghe di Rame a Franklin, Indiana, prevedendo un miglioramento del flusso di cassa libero da questo cambiamento strategico.
Da ottobre 2022, la divisione Leghe di Rame ha registrato tendenze favorevoli nei ricavi e nel profitto lordo, principalmente grazie alla consolidazione delle operazioni in un'unica struttura. La divisione gestisce un impianto di produzione di leghe di rame verticalmente integrato in Indiana, che ha mostrato prestazioni migliorate dopo aver affrontato le interruzioni di mercato legate al COVID e completato la modernizzazione dell'impianto nel 2022.
Il CEO Mark A. Smith ha citato una forte domanda di rame e leghe di rame, con una produzione mondiale aumentata di oltre il 25% in dieci anni, come un fattore chiave in questa decisione strategica. L'azienda prevede di sostenere costi legati alla chiusura dell'impianto nel Massachusetts, ma sta negoziando per minimizzare le spese.
IBC Advanced Alloys Corp. (TSX-V:IB, OTCQB:IAALF) ha anunciado la finalización del trabajo del contrato y la descontinuación de las operaciones en su planta de aleaciones de berilio-aluminio en Massachusetts. La empresa ahora se está enfocando en el crecimiento de su división de Aleaciones de Cobre en Franklin, Indiana, anticipando un flujo de efectivo libre mejorado a partir de este cambio estratégico.
Desde octubre de 2022, la división de Aleaciones de Cobre ha experimentado tendencias favorables en los ingresos y en la utilidad bruta, en gran parte debido a la consolidación de operaciones en una sola planta. La división opera una planta de producción de aleaciones de cobre verticalmente integrada en Indiana, que ha mostrado un rendimiento mejorado desde que navegó las interrupciones del mercado relacionadas con COVID y completó la modernización de la planta en 2022.
El CEO Mark A. Smith citó una fuerte demanda de cobre y aleaciones de cobre, con una producción mundial que ha aumentado más del 25% en diez años, como un factor clave en esta decisión estratégica. La empresa espera incurrir en gastos relacionados con el cierre de la planta de Massachusetts, pero está negociando para minimizar los costos.
IBC Advanced Alloys Corp. (TSX-V:IB, OTCQB:IAALF)는 매사추세츠에 위치한 베릴륨-알루미늄 합금 시설의 최종 계약 작업 완료 및 운영 중단을 발표했습니다. 회사는 이제 인디애나주 프랭클린에서 구리 합금 부서를 성장시키는 데 집중하고 있습니다, 이러한 전략적 전환으로 자유 현금 흐름改善을 기대하고 있습니다.
2022년 10월 이후 구리 합금 부서는 수익 및 총 이익의 유리한 추세를 보였으며, 이는 크게 단일 공장으로 운영을 통합한 덕분입니다. 이 부서는 인디애나에 수직 통합된 구리 합금 생산 시설를 운영하며, COVID 관련 시장 혼란을 극복하고 2022년에 시설 현대화 작업을 완료한 이후 성능이 개선되었습니다.
CEO Mark A. Smith는 구리 및 구리 합금에 대한 강한 수요를 언급하며, 지난 10년 동안 전 세계 생산이 25% 이상 증가한 것을 전략적 결정의 주요 요인으로 보았습니다. 회사는 매사추세츠 공장 폐쇄와 관련된 비용이 발생할 것으로 예상하고 있지만, 비용을 최소화하기 위해 협상 중입니다.
IBC Advanced Alloys Corp. (TSX-V:IB, OTCQB:IAALF) a annoncé l'achèvement des travaux de contrat final et la cessation des opérations de son usine d'alliage béryllium-aluminium dans le Massachusetts. L'entreprise se concentre désormais sur le développement de sa division Alliages de Cuivre à Franklin, Indiana, anticipant une amélioration de son flux de trésorerie libre grâce à ce changement stratégique.
Depuis octobre 2022, la division Alliages de Cuivre a connu des tendances favorables en termes de revenus et de bénéfice brut, principalement en raison de la consolidation des opérations en une seule usine. Cette division gère une usine de production d'alliages de cuivre intégrée verticalement dans l'Indiana, qui a montré des performances améliorées depuis qu'elle a navigué à travers les perturbations du marché liées au COVID et complété la modernisation de l'usine en 2022.
Le PDG Mark A. Smith a cité une forte demande en cuivre et en alliages de cuivre, avec une production mondiale en hausse de plus de 25 % en dix ans, comme un facteur clé dans cette décision stratégique. L'entreprise s'attend à engager des coûts liés à la fermeture de l'usine du Massachusetts, mais elle négocie pour minimiser ces dépenses.
IBC Advanced Alloys Corp. (TSX-V:IB, OTCQB:IAALF) hat die Abschlussarbeiten des Vertrages sowie die Einstellung der Betriebe in seiner Beryllium-Aluminium-Legierungsanlage in Massachusetts bekannt gegeben. Das Unternehmen konzentriert sich nun auf die Expansion seiner Kupferlegierungsdivision in Franklin, Indiana, in der Erwartung, von diesem strategischen Wechsel einen verbesserten Cashflow zu erzielen.
Seit Oktober 2022 hat die Kupferlegierungsdivision positive Trends in den Einnahmen und im Bruttogewinn verzeichnet, was hauptsächlich auf die Zusammenlegung der Betriebe in eine einzige Anlage zurückzuführen ist. Die Division betreibt eine vertikal integrierte Kupferlegierungsproduktionsstätte in Indiana, die sich seit der Bewältigung der durch COVID verursachten Marktherausforderungen und der Modernisierung der Anlage im Jahr 2022 verbessert hat.
CEO Mark A. Smith verwies auf hohe Nachfrage nach Kupfer und Kupferlegierungen, wobei die weltweite Produktion in den letzten zehn Jahren um über 25 % gestiegen ist, als einen entscheidenden Faktor für diese strategische Entscheidung. Das Unternehmen erwartet Kosten im Zusammenhang mit der Schließung des Werks in Massachusetts, verhandelt jedoch, um die Ausgaben zu minimieren.
- Completion of final contract work at the Massachusetts facility, potentially reducing ongoing costs
- Focus on growing the Copper Alloys division in Indiana, which has shown favorable revenue and profit trends
- Anticipated expansion of free cash flow due to discontinuation of the Engineered Materials division
- Increased revenue, improved gross profit and gross margin in the Copper Alloys division since October 2022
- Strong demand for copper and copper alloys, with worldwide copper production up over 25% in ten years
- Discontinuation of operations at the Massachusetts-based beryllium-aluminum alloy facility
- Expected charges related to the Massachusetts plant closure
- Insufficient long-term demand for cast beryllium-aluminum alloy products leading to continuing losses
- Depletion of working capital for the Copper Alloys division due to Engineered Materials division's net losses
IBC's Beryllium Alloy Division Discontinues Operations as IBC Shifts to a Potential Expansion of its Indiana-Based Copper Alloys Business
FRANKLIN, IN / ACCESSWIRE / September 5, 2024 / IBC Advanced Alloys Corp. ("IBC" or the "Company") (TSX-V:IB)(OTCQB:IAALF) announces that its Massachusetts-based beryllium-aluminum alloy facility has successfully completed all work on its final production contracts and has discontinued operations.
IBC is now focused on growing its Copper Alloys division in Franklin, Indiana and anticipates that the discontinuation of its beryllium-aluminum alloy based Engineered Materials ("EM") division will expand free cash flow. IBC's remaining operating division -- Copper Alloys -- has enjoyed a favorable trend in revenues and gross profit since October 2022, much of which is attributable to the consolidation of its operations in one plant.
The Copper Alloys division operates a vertically integrated copper alloy production facility in Indiana, which takes raw material through foundry, forge, and rough and final machining. Since navigating the market disruptions of the COVID pandemic, consolidating three copper alloy plants into one facility in 2022, and completing construction of its modernized and expanded production facility in Franklin, Indiana. in 2022, the division has increased revenue, improved its gross profit and gross margin.
"This strategic shift in our business focus is the right thing to do and comes at the right time, especially as demand for copper and copper alloys continues to strengthen, a trend that is reflected by strong demand, with worldwide copper production up over
As previously announced on April 25, 2024, the Company's decision to discontinue EM's operations was driven primarily by insufficient long-term demand for cast beryllium-aluminum alloy products and the resulting continuing losses. EMC's history of net losses depleted available working capital for the Copper Alloys division at a time when demand for copper alloy products was growing. The Company expects to incur a charge to operations in respect of the Massachusetts plant closure and is negotiating with suppliers and its landlord to minimize such costs.
On Behalf of the Board of Directors:
"Mark A. Smith"
Mark A. Smith, CEO & Chairman of the Board
# # #
CONTACTS:
Mark A. Smith, Chairman of the Board
Jim Sims, Director of Investor and Public Relations
+1 (303) 503-6203
Email: jim.sims@ibcadvancedalloys.com
Website: www.ibcadvancedalloys.com
@IBCAdvanced $IB.TO $IAALF #copper
ABOUT IBC ADVANCED ALLOYS CORP.
IBC is a leading advanced copper alloys manufacturer serving a variety of industries such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. At its vertically integrated production facility in Franklin, Indiana, IBC manufactures and distributes a variety of copper alloys as ingot castings and custom forgings, including beryllium copper, chrome copper, and aluminum bronze. The Company's common shares are traded on the TSX Venture Exchange under the symbol "IB" and the OTCQB under the symbol "IAALF".
CAUTIONARY STATEMENTS REGARDING FORWARD LOOKING STATEMENTS
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information contained in this news release may be forward-looking information or forward-looking statements as defined under applicable securities laws. Forward-looking information and forward-looking statements are often, but not always identified by the use of words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "will", "may" and "should" and similar expressions or words suggesting future outcomes. This news release includes forward-looking information and statements pertaining to, among other things, the Company's belief that the discontinuation of its EM division will expand free cash flow, that the Copper Alloys division will be successful in increasing revenue, improving its gross profit and gross margin, that the Copper Alloys division will continue to expand its business, and that the Company will incur a charge to operations in respect of the Massachusetts plant closure and will be successful in negotiating with suppliers and its landlord to minimize such costs. Forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control including: the impact of general economic conditions in the areas in which the Company or its customers operate, including the semiconductor manufacturing and oil and gas industries, risks associated with manufacturing activities, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, limited availability of raw materials, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. As a result of these risks and uncertainties, the Company's future results, performance or achievements could differ materially from those expressed in these forward-looking statements. All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances.
Please see "Risks Factors" in our Annual Information Form available under the Company's profile at www.sedar.com, for information on the risks and uncertainties associated with our business. Readers should not place undue reliance on forward-looking information and statements, which speak only as of the date made. The forward-looking information and statements contained in this release represent our expectations as of the date of this release. We disclaim any intention or obligation or undertaking to update or revise any forward-looking information or statements whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
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i The Company has presented revenue and gross profit amounts for the Copper Alloys operations as they are indicative of how the ability of the Copper Alloys business to generate a contribution has improved since 2020. The Company does not believe it is possible to estimate with any accuracy what the profitability of IBC would have been in prior periods without the EM division. The historical results presented do not necessarily provide an indication of expected future results.
SOURCE: IBC Advanced Alloys Corp.
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