Synalloy’s First Quarter Metal Shipments and Bookings Up Over Last Year; Chemical Sales also Exceed Prior Year
April 02 2020 - 9:19AM
Business Wire
Suspends
Manufacturing Operations at Palmer of Texas
Synalloy Corporation (Nasdaq: SYNL) announced today that first
quarter shipments for the Metals Segment (excluding Palmer of
Texas) were up 3.6% on a pounds basis over last year. Bookings and
backlogs were up from 2019 levels by approximately 30% on a pounds
basis and 19% on a dollars basis. Specialty Chemical Segment
shipments were down 7% on a pounds basis, but total revenues were
up approximately 2.6% on a dollars basis, resulting from a
favorable product mix shift to more value added contract
manufactured products. “Synalloy’s operating units are included in
the list of critical infrastructure sectors designated by the
Department of Homeland Security and have been in full operation
throughout the first quarter. Several of our businesses have been
directly involved in supplying critical products such as hand
sanitizer from our Chemicals Segment and ornamental tubing from
ASTI for the medical sector. We are proud to assist in any way that
we can with the COVID-19 outbreak,” commented Craig C. Bram,
President and CEO.
Synalloy has decided to suspend manufacturing operations at its
Palmer of Texas business, effective April 1, 2020. “This reduction
in force, while difficult, is necessary given the unprecedented
impact the COVID-19 pandemic is having on the oil and gas industry,
and particularly in the Permian Basin. While Palmer’s financial
performance in January and February was in line with the 2020 plan,
we have witnessed heavy cancellations and postponements in our
order book throughout the month of March. We will maintain a very
small group of employees at this facility until further notice. We
hope to resume manufacturing operations at Palmer when pricing and
demand in the oil and gas industry and the Permian Basin
normalize,” commented Bram. Synalloy Corporation (Nasdaq: SYNL) is
a growth oriented company that engages in a number of diverse
business activities including the production of stainless steel
pipe and tube, galvanized pipe and tube, fiberglass and steel
storage tanks, specialty chemicals and the master distribution of
seamless carbon pipe and tubing. For more information about
Synalloy Corporation, please visit our website at www.synalloy.com.
This press release includes and incorporates by reference
"forward-looking statements" within the meaning of the federal
securities laws. All statements that are not historical facts are
"forward-looking statements." The words "estimate," "project,"
"intend," "expect," "believe," "should," "anticipate," "hope,"
"optimistic," "plan," "outlook," "should," "could," "may" and
similar expressions identify forward-looking statements. The
forward-looking statements are subject to certain risks and
uncertainties, including without limitation those identified below,
which could cause actual results to differ materially from
historical results or those anticipated. Readers are cautioned not
to place undue reliance on these forward-looking statements. The
following factors could cause actual results to differ materially
from historical results or those anticipated: adverse economic
conditions; the impact of competitive products and pricing; product
demand and acceptance risks; raw material and other increased
costs; raw materials availability; employee relations; ability to
maintain workforce by hiring trained employees; labor efficiencies;
customer delays or difficulties in the production of products; new
fracking regulations; a prolonged decrease in oil and nickel
prices; unforeseen delays in completing the integrations of
acquisitions; risks associated with mergers, acquisitions,
dispositions and other expansion activities; financial stability of
our customers; environmental issues; unavailability of debt
financing on acceptable terms and exposure to increased market
interest rate risk; inability to comply with covenants and ratios
required by our debt financing arrangements; ability to weather an
economic downturn; loss of consumer or investor confidence and
other risks detailed from time-to-time in the Company's Securities
and Exchange Commission filings. The Company assumes no obligation
to update the information included in this release.
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version on businesswire.com: https://www.businesswire.com/news/home/20200402005507/en/
Dennis Loughran at (804) 822-3266
Synalloy (NASDAQ:SYNL)
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