On April 2, 2020, Synalloy Corporation (“Synalloy”) issued a press release announcing improved shipments and bookings in its Metals Segment for the first quarter ended March 31, 2020, compared to the first quarter of 2019. Additionally, the Specialty Chemicals Segment experienced reduced shipments, on a pounds basis, compared to the first quarter of 2019, but improved revenues due to a favorable product mix shift to more value added contract manufacturing products.

A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K, is incorporated herein by reference, and is furnished to, but not filed with, the Securities and Exchange Commission.

Item 8.01 Other Events

On April 2, 2020, Synalloy issued a press release announcing its decision to suspend manufacturing operations at its wholly-owned subsidiary, Palmer of Texas Tanks, Inc. (“Palmer”), until further notice. The COVID-19 pandemic has had a devasting impact on the global 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, this business unit experienced heavy cancellations and postponements in its order book throughout the month of March. Synalloy hopes to re-open Palmer when the COVID-19 pandemic is over and the oil and gas industry in the Permian Basin returns to normalized pricing and demand levels.

A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits

(c) Exhibits

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SYNALLOY CORP Exhibit
EX-99.1 2 synl-20200402xex991.htm EXHIBIT 99.1 Exhibit Exhibit 99.1Synalloy’s First Quarter Metal Shipments and Bookings Up Over Last Year; Chemical Sales also Exceed Prior Year Suspends Manufacturing Operations at Palmer of TexasRICHMOND,…
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About SYNALLOY CORPORATION (NASDAQ:SYNL)

Synalloy Corporation is a chemical manufacturing company. The Company operates through two segments: the Metals Segment and the Specialty Chemicals Segment. The Company’s Metals Segment comprises three subsidiaries: Synalloy Metals, Inc., which owns Bristol Metals, LLC (BRISMET), located in Bristol, Tennessee; Palmer of Texas Tanks, Inc. (Palmer), located in Andrews, Texas; and Specialty Pipe & Tube, Inc. (Specialty), located in Mineral Ridge, Ohio and Houston, Texas. The Company’s Metals Segment manufactures stainless steel, other alloy pipe, storage solutions and separation equipment. The Company’s Specialty Chemicals segment consists of the Company’s subsidiary, Manufacturers Soap and Chemical Company (MS&C). The Specialty Chemicals Segment manufactures lubricants, surfactants, reaction intermediaries, sulfated fats and oils, and chemical tolling manufacturing resources.