IBC Advanced Alloys swings to profitability in the quarter ended March 31, 2021

IBC Advanced Alloys has reported income of US$139,000 in the January-March quarter, reversing a loss posted in the preceding quarter, and as compared to income of US$171,000 in the prior-year period. The Copper Alloys division posted income of US$205,000 in the quarter, a 109% jump over the prior-year period, and the Engineered Materials (EM) division’s income in the quarter of US$490,000 was 84.9% higher than the prior-year period.

IBC’s Engineered Materials (EM) division sales of precision beryllium-aluminum products rose 14.8% year over year, fueled largely by sharply higher demand from semiconductor chips used in the ongoing build-out of 5G networks and in vehicles, data centers, appliances, and other components of the Internet of Things (IOT).  In the nine months ended March 31, 2021, the division posted sharply higher income of US$579,000, a 916% increase over income of US$57,000 in the prior-year period.

In the quarter, IBC swung to profitability as compared to the quarter ended Dec. 31, 2020, with consolidated revenue increasing 110% and Adjusted EBITDA rising by 151%, both as compared to the preceding quarter.  

Consolidated gross margin improved to 30.5% in the quarter, as compared to 17.0% in the preceding quarter and 19.9% in the prior-year period, with fixed costs being spread over higher sales volumes. Gross margin in the Copper Alloys division rose to 20.5%, as compared to 10.6% and 14.1% in the preceding and prior-year periods, respectively.  EM gross margin expanded to 45.6% in the quarter, as compared to 26% and 32.1% in the preceding and prior-year periods, respectively.

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