Press release
DMC Global Revises Fourth Quarter Sales Forecast
BROOMFIELD, Colo., Dec. 17, 2019 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) today announced that fourth quarter 2019 sales are expected in a range of
About this update from Dmc Global Inc.
[{"type":"text","content":"BROOMFIELD, Colo., Dec. 17, 2019 (GLOBE NEWSWIRE) -- DMC Global Inc. (Nasdaq: BOOM) today announced that fourth quarter 2019 sales are expected in a range of $82 million to $86 million versus a previously forecasted range of $92 million to $97 million. The revision is due to a sharp decline in North American well completion activity and significant pricing pressure affecting DynaEnergetics, DMC’s oilfield products business. Fourth quarter sales at DynaEnergetics are expected in a range of $62 million to $64 million versus a previously forecasted range of $72 million to $75 million. Anticipated fourth quarter sales at NobelClad, DMC’s composite metals business, remain in the previously forecasted range of $20 million to $22 million. Management expects fourth quarter adjusted EBITDA to be $14.0 million to $15.0 million versus its prior guidance range of $17.5 million to $20 million, and its consolidated full-year adjusted earnings per share are expected to be in a range of $3.50 to $3.60 versus its prior guidance range of $3.65 to $3.80.\n “The year-end decline in market activity at DynaEnergetics occurred earlier, and was more pronounced than we anticipated,” said Kevin Longe, president and CEO of DMC. “DynaEnergetics also has turned away multiple order opportunities that did not meet the margin objectives we seek for our differentiated perforating systems. “Customer interest in DynaEnergetics’ advanced perforating systems remains strong, and we have not seen any notable changes on the competitive product landscape,” Longe added. “We believe sales activity at DynaEnergetics will begin to recover early next year, as exploration and production companies commence their 2020 well completion programs.” Regional shifts in North American drilling and completion activity recently led DynaEnergetics to close distribution facilities in Canada and Oklahoma. DynaEnergetics also is using the industry slowdown to accelerate a planned consolidation of its perforating system assembly operations in Mt. Braddock, Pennsylvania, into its flagship North American facility in Blum, Texas. Annual cost savings related to the reduction in fixed overhead and general and administrative expenses are expected to be approximately $2.0 million. Restructuring charges, which primarily address severance costs for a headcount reduction of 54 employees, are expected...