Noranda Aluminum Holding Corp. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014; Provides Capital Expenditure Guidance for the Second Half of 2014
August 11, 2014 at 04:09 pm
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Noranda Aluminum Holding Corp. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2014. For the quarter, the company reported sales of $345.9 million compared to $352.0 million a year ago. Sequentially (comparing second quarter 2014 to first quarter 2014), sales increased $34.3 million, or 11%. Approximately $24.2 million of this revenue improvement was due to seasonally higher external shipments of primary and flat-rolled aluminum products. The remaining increase was largely due to a $0.04 per pound sequential improvement in the realized Midwest Transaction Price for primary and flat-rolled aluminum products, driven by modest improvements in both the LME aluminum price and Midwest Premium. Operating income was $2.7 million compared to operating loss of $3.7 million a year ago. Loss before income taxes was $10.0 million compared to $18.9 million a year ago. Net loss was $7.6 million or $0.11 per basic and diluted share, compared to $12.3 million or $0.18 per basic and diluted share, a year ago. Cash provided by operating activities 2.3 million compared to $16.8 million a year ago. Capital expenditures were $18.0 million compared to $20.6 million a year ago. Adjusted EBITDA was $30.4 million compared to $25.0 million a year ago.
For the year to date, the company reported sales of $657.5 million compared to $690.4 million a year ago. Operating loss was $8.4 million compared to operating income of $4.5 million a year ago. Loss before income taxes was $33.9 million compared to $17.9 million a year ago. Net loss was $24.4 million or $0.36 per basic and diluted share, compared to $11.7 million or $0.17 per basic and diluted share, a year ago. Cash used in operating activities was $17.2 million compared to cash provided by operating activities of $14.7 million a year ago. Capital expenditures were $31.1 million compared to $39.5 million a year ago. Adjusted EBITDA was $41.1 million compared to $61.3 million a year ago. Net debt (debt minus cash) was $630.6 million.
For the second half of 2014, the company expects to spend approximately $28 million on the rod mill, including approximately $13 million upon delivery of the rod production line in September 2014.
Noranda Aluminum Holding Corporation is a producer of primary aluminum, alumina, bauxite and rolled aluminum coils. The Company produces aluminum products in a range of forms, such as billet, rod, sow and foundry. The Company operates through five segments: Bauxite, Alumina, Primary Aluminum, Flat-Rolled Products and Corporate. The Company has two businesses: Upstream Business and Downstream Business. Its Upstream Business consists of three segments: Primary Aluminum, Alumina and Bauxite. The Primary segment consists of a smelter near New Madrid, Missouri (New Madrid). The Alumina segment consists of an alumina refinery near Gramercy, Louisiana (Gramercy). The Bauxite segment consists of a bauxite mining operation (St. Ann). Its Downstream Business consists of its Flat-Rolled Products segment, which is an aluminum foil producer in North America, and consists of approximately four rolling mills at approximately three facilities.
Noranda Aluminum Holding Corp. Reports Unaudited Consolidated Earnings Results for the Second Quarter and Six Months Ended June 30, 2014; Provides Capital Expenditure Guidance for the Second Half of 2014