Aleris Corporation today reported results for the three and nine months ended September 30, 2014.

Third Quarter Summary

• Adjusted EBITDA of $83 million; Net income of $26 million
• Sequential and year-over-year Adjusted EBITDA improvement of 28 percent and 22 percent, respectively
• Higher volumes due to automotive, and building & construction volumes and the Nichols acquisition
• Global aerospace volumes and margins negatively impacted by customer destocking
• Improved metal spreads and scrap spreads
• Liquidity of $390 million as of September 30, 2014
• Announced $350 million investment to add automotive body sheet capabilities in North America
• Entered into definitive agreement to sell Recycling and Specification Alloy businesses
Fourth Quarter Outlook

• Year-over-year performance improvement expected
• Automotive light weighting impact on aluminum demand expected to significantly exceed prior year
• Building and construction volumes expected to exceed prior year
• Aerospace sales mix and margins will continue to be negatively impacted by customer destocking
• Improvement in scrap spreads expected to offset impact of competitive imports

"I am pleased with the improvement in manufacturing performance across Aleris along with the continued successful execution of our strategic growth projects which are enabling us to capitalize on strengthening demand in key industries including global automotive and building and construction in North America," Steve Demetriou, Aleris chairman and CEO said.

"As illustrated by the recent announcements of our plans to sell our Recycling and Specification Alloy businesses and to invest $350 million to expand our Lewisport, Kentucky site to serve the automotive industry, we are focused on growing our rolled products capabilities to deliver more value-added products in the areas with the highest growth potential," he added

Third Quarter 2014 Results Adjusted EBITDA totaled $83 million for the third quarter of 2014 compared to $68 million for the third quarter of 2013.

Net income attributable to Aleris Corporation for the third quarter of 2014 was $26 million compared to a net loss of $7 million for the third quarter of 2013. In the third quarter of 2014, cash flows used by operating activities totaled $29 million and we incurred capital expenditures of $31 million. Aleris had $390 million of liquidity as of September 30, 2014, which consisted of $352 million of availability under the ABL Facility plus $38 million of cash on hand.

Capital expenditures during the fourth quarter of 2014 are expected to be higher than the fourth quarter of 2013 and the previous quarters of 2014 primarily due to the auto body sheet investment in Lewisport, Kentucky. We currently estimate capital spending of $185 million for the year ending December 31, 2014.