Restructured Aleris Reports Good Gains
Aleris International Inc., Beachwood, Ohio, reported revenue growth of 26 percent in fourth-quarter 2010, to $1.1 billion, due to higher LME aluminum prices and improved rolling margins. Net income for the fourth quarter totaled $42 million, up substantially from the net loss of $759 million in fourth-quarter 2009.
For the year ended Dec. 31, combining results from before and after the company emerged from Chapter 11 bankruptcy protection on June 1, Aleris reported revenues of $4.1 billion, up from $3.0 billion in 2009. Adjusted EBITDA for the year totaled $264 million, compared to $82 million in 2009. Demand increases across all products drove the improved earnings performance, with all segments posting volume growth in excess of 18 percent, the company reported.
“Our fourth-quarter results demonstrate the benefits associated with our successful restructuring initiatives and the continued momentum of the economic recovery,” said Steven J. Demetriou, Aleris chairman and chief executive officer. “This is particularly true in our European rolled products and extrusions businesses, as well as our recycling and specification alloys businesses in both the Americas and Europe, where higher volumes and improved pricing led to significant performance improvements. We ended 2010 well positioned to capitalize on our strategic growth initiatives led by our announced expansions in China, as well as expected continued benefits from the recovery.”
The company broke ground for its joint venture rolling mill in China in January 2011. It also sold its Brazil recycling operations in the fourth quarter of 2010.