Aleris reported record adjusted EBITDA of $108 million in Q2 2019

Aleris Corporation reported results for the three months ended June 30, 2019. The company reported a net income of $25 million in the second quarter of 2019 compared to a net loss of $47 million in the second quarter of 2018. Adjusted EBITDA stood at $108 million, from $85 million in the second quarter of 2018.

Sean Stack, Aleris Chairman and CEO said, “We are pleased with our strong performance in the first half of the year, delivering record adjusted EBITDA driven primarily by strong aerospace volumes and an overall shift toward higher value products in a favourable metal environment.”

"We expect that momentum to continue as we further realize the full potential of the strategic investments we've made in our automotive and aerospace capabilities and the added value they bring to our customers around the world."

North America segment income increased to $74 million in Q2, from $72 million in Q2 2018. Segment Adjusted EBITDA increased to $76 million in the second quarter of 2019, mostly driven by improved rolling margins combined with favourable metal spreads and scrap availability.

Europe segment income dropped to $33 million in the second quarter of 2019. Segment Adjusted EBITDA stood at $32 million in the second quarter of 2019, from $34 million in the second quarter of 2018.

Asia Pacific segment income stood at $9 million in Q2 2019, up from $7 million in Q2 2018. Segment Adjusted EBITDA increased to $9 million. “The primary performance drivers for segment income and segment Adjusted EBITDA were an improved mix of products sold, resulting from a 37 percent increase in aerospace shipments, that increased segment Adjusted EBITDA approximately $2 million and the net impact of currency changes that increased segment Adjusted EBITDA approximately $1 million,” the company said.