Cleveland rolled aluminium firm Aleris International, Inc. released second-quarter results yesterday. Though better margins and product mix improved earnings, a debt refinancing helped push the bottom line further into the red.
In 2018’s second quarter, Aleris shipped 235 thousand metric tons of finished product, a rise year-on-year from last year’s second-quarter total shipment of 219 thousand metric tons. Revenue in the quarter totaled US$931 million, a jump from last year’s second-quarter total of US$776 million.
Adjusted EBITDA for the just-ended quarter came in at US$85 million, up from last year’s second-quarter figure of US$66 million metric tons. Novelis’ net loss in the quarter totaled US$47 million, an increase over last year’s second-quarter net loss of US$2 million.
The firm credits improved rolling margins and a more favorable product mix with the bump in adjusted EBITDA, as well as a rise in production volume and increased productivity. A US$49 million debt extinguishment helped widen the firm’s losses in the quarter.
Sean Stack, Aleris chairman and CEO, expanded upon the company’s results, noting that new automotive and aerospace offerings are expected to pull numbers upward as the months progress.
“Our strong performance reflects the successful ramp up of multiple growth projects as well as our laser focus on enhancing the reliability of our operations, both of which have positioned us well to fully capitalize on a strong environment. With our new automotive capabilities at our facility in Lewisport, Kentucky delivering to customers and the benefits of multiple multi-year global aerospace contracts taking effect, we expect to continue our momentum into the next quarter and beyond.”
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.
The firm is currently in the process of being acquired by Hindalco subsidiary Novelis in a US$2.6 billion deal that is expected to close by next fall.