In alive webcast, Company also said it expects to see gross margins expand by 10% as a result of new production equipment now being installed in both operating divisions
FRANKLIN, Ind., June 19, 2018 (GLOBE NEWSWIRE) -- Major General Duncan Heinz (USMC, ret.), President and CEO of IBC Advanced Alloys Corp. (“IBC” or the “Company”) (TSX-V:IB) (OTCQB:IAALF) said this week that he expects IBC will begin production and sales of several new products in 2018/2019, including one that is expected to launch in commercial sales in the next quarter.
In a live webcast broadcast on June 18, General Heinz also predicted that the Company’s fiscal year 2019, which begins on July 1, 2018, is expected to be “a breakout year for IBC.”
“Sales in our Copper Alloys division have been running at over a $15 million annualized revenue rate for the last four months, which is up from about $12 million in sales in fiscal year 2017. Orders in our Engineered Materials division, where we make beryllium-aluminum castings, will put us near current production capacity, and that is requiring us to accelerate plans to address production constraints, primarily with additional labor, new shift structures and with additional hardware funded through the recent raise to facilitate the division’s next leg up in growth. We expect fiscal year 2019 to be a break-out year for IBC,” the General said.
The General noted that several market and macroeconomic indicators bode well for increased IBC sales.
“The US labor market is at its lowest unemployment rate in many years, the housing market is strong, and industrial production is rising, which is reflected in strong commodity prices including for copper,” he said. “Copper prices are a great indicator of demand for our products. And, while the cost of copper is passed through to our customers, higher prices do bode well for our bottom line.”
“The demand for cost-effective beryllium-based alloys remains strong as demand continues to increase for better imaging platforms with less vibration,” the General noted. “Our process of casting these products in a near net shape facilitates that cost effectiveness, saving 50-80% of costs over the traditional methods of producing the parts by machining out the final part from a solid block of alloy, typically requiring weeks to months of machining and resulting in significant material waste.”
“I am also very excited by the growth in Internet of Things, which translates to a need for more semiconductor chips and more semiconductor chip manufacturing. We continue to work to increase our production efficiency for parts used in semiconductor chip manufacturing to meet this increased demand,” he added.
While the General said he could not be specific about the new products that IBC has in the production pipeline, he did note that IBC’s work on scandium-contained aluminum alloys with Niocorp Developments Ltd. (TSX:NB) (OTCQX:NIOBF) (FSE:BR3) continues to proceed, including the recent expansion of the alloy development program to an independent metallurgical lab.
To see the full video replay of the IBC webcast, please go here: https://youtu.be/5cPWJmL3SLU
For more information on IBC and its innovative alloy products, go here.
On Behalf of the Board of Directors:
David “Duncan” Heinz, President, CEO and Director
@IBCAdvanced $IB $IAALF #Beryllium #Beralcast
About IBC Advanced Alloys Corp.
IBC is a leading beryllium and copper advanced alloys company serving a variety of industries such as defense, aerospace, automotive, telecommunications, precision manufacturing, and others. IBC's Copper Alloys Division manufactures and distributes a variety of copper alloys as castings and forgings, including beryllium copper, chrome copper, and aluminum bronze. IBC's Engineered Materials Division makes the Beralcast® family of alloys, which can be precision cast and are used in an increasing number of defense, aerospace, and other systems, including the F-35 Joint Strike Fighter. IBC's has production facilities in Indiana, Massachusetts, Pennsylvania, and Missouri. The Company's common shares are traded on the TSX Venture Exchange under the symbol \"IB\" and the OTCQB under the symbol \"IAALF\".
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. This disclosure contains certain forward-looking statements that 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, 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. In addition, there are risks and uncertainties associated with manufacturing activities therefore 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.
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