Cleveland rolled aluminium firm Aleris International, Inc. reported results for the second quarter and first half of 2019 yesterday, delivering better numbers for both periods on the year thanks to robust aerospace demand and a better mix of value-added products.
Aleris reported a net income of US$25 million in the second quarter, reversing a net loss of US$47 million a year ago. Adjusted EBITDA in the quarter was a record high of US$108 million, besting last year’s second-quarter adjusted EBITDA of US$85 million. Per the firm, the quarter’s results were bolstered by a better product mix, including a 20-percent bump in aerospace shipments and 56-percent rise in volumes of global automotive shipments. Improved rolling margins and favorable metal spreads also greatly contributed to the rise.
Income for the North American segment totaled US$74 million last quarter, up by US$2 million on the year, while adjusted EBITDA rose from US$55 million last year to US$76 million in the just-ended quarter. European operations turned in an income of US$33 million in the second quarter, down from US$42 million a year ago, and the segment’s adjusted EBITDA fell by US$2 million to US$34 million. Asia Pacific operations’ income rose by US$2 million on the year and its adjusted EBITDA rose by US$3 million on the year, with both metrics arriving at US$9 million for the just-completed quarter.
For the half year Novelis reported revenues of US$1,794 million, up from US$1,733 million in last year’s first half thanks to increased volumes, a better product mix, and improved rolling margins. The firm showed a net loss of US$9 million, climbing back from a net loss of US$42 million last year, largely thanks to a US$54 million bump in adjusted EBITDA to US$193 million.
Sean Stack, Aleris Chairman and CEO, said the results for the year to date are expected to carry the firm to even better results in the coming quarters.
“We are pleased with our strong performance in the first half of the year, delivering record adjusted EBITDA driven primarily by strong aerospace volumes and an overall shift toward higher value products in a favorable metal environment. We expect that momentum to continue as we further realize the full potential of the strategic investments we’ve made in our automotive and aerospace capabilities and the added value they bring to our customers around the world.”
Ranked by Forbes as one of the United States’ largest privately-held companies, Aleris is a global leader in aluminum rolled products serving diverse industries including aerospace, automotive, building and construction, commercial transportation and industrial manufacturing. Headquartered in Cleveland, Ohio, Aleris operates production facilities in North America, Europe and Asia.