Cleveland rolled aluminium firm Aleris International, Inc. reported financial and operating results for the fourth quarter and full year of 2018 yesterday. An uptick in demand and a favorable metal environment in North America helped propel most of the firm’s numbers past those of preceding periods.
The fourth quarter saw Aleris ship 203 metric tons of finished product, up on the year from last year’s fourth-quarter shipments of 184 metric tons.
Revenue for the quarter totaled US$802 million, besting last year’s fourth-quarter total of US$694 million. The firm’s net loss for the quarter came to US$23 million, vastly improving on the year from last year’s year-closing quarterly loss of US$107 million thanks in part to a US$23-million impairment of receivables held in escrow from the sale of its recycling business.
Adjusted EBITDA for the quarter figured at US$61 million, besting last year’s fourth-quarter EBITDA of US$37 million and setting a company record. Increased rolling margins, total volume, and improved product mix are among the factors that contributed to the record number.
The full year saw Aleris ship 873 metric tons of finished product, just under the prior year’s total of 880 metric tons.
Revenue for the full year totaled US$3,446 million, topping the prior year’s total revenue of US$2,857 million, up largely due to increased volumes and higher average aluminium prices. Last year’s net loss came to US$92 million, improving from 2017’s total net loss of US$211 million. Adjusted EBITDA for the year figured at a record US$276 million, surpassing the prior year’s adjusted EBITDA of US$201 million due to an uptick in demand, improved rolling margins, and better operating performance, among other factors.
“Our global growth strategy delivered strong results in 2018 with record volumes and record adjusted EBITDA,” opined Aleris’ Chairman and CEO Sean Stack. “Our Lewisport, Kentucky automotive facility is delivering products to customers and, in the fourth quarter, began to produce commercial shipments from the second of our two auto finishing lines at that facility. Additionally, we have seen the aerospace industry return to growth in the second half of the year and have benefited from deliveries under our multi-year aerospace agreements. We expect these trends to continue into 2019, and expect to deliver year-over-year growth in adjusted EBITDA.”
Going forward, Aleris foresees a rise in both segment income and adjusted EBITDA over the course of the current year. This year’s total capex is slated to be between US$120 million and US$140 million, with a positive cash flow expected for the year.
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.