USA – In its latest results package, aluminium specialist Aleris has reported a drop in overall earnings but ‘positive momentum’ in its Recycling & Specification Alloys businesses.
Overall earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to US$ 65 million in this year’s second quarter versus US$ 78 million in the corresponding period last year. Aleris chairman and ceo Steve Demetriou acknowledges a ‘disappointing’ year-over-year performance.
He adds: ′Stronger overall volumes are confirming our expectation that demand would strengthen in 2014, particularly in our automotive business, which has grown significantly. We are extremely pleased with the positive momentum in our Recycling & Specification Alloys businesses. However, we are disappointed that operational issues and compressed margins in rolled products ′have prevented us from fully capitalising on the improved demand.′
Aleris′ Recycling and Specification Alloys North America segment saw an EBITDA increase to US$ 17 million in the second quarter from US$ 13 million in the same period last year. For the company′s Recycling and Specification Alloys Europe branch, EBITDA increased to US$ 6 million from US$ 3 million when making the same comparison.
Overall, Aleris expects to see an improved performance in the second half of this year, not least as a result of global automotive demand growth. For the third quarter, Aleris forecasts that EBITDA will be higher than in the second quarter of 2014 and the corresponding three-month period of 2013, partly as a result of improved mill grade scrap flow and spreads.
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