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11 MARCH 2019 AL CIRCLE

Aleris reports higher revenues in 2018 on increased volumes and aluminium prices

EDITED BY : HEENA IQBAL 2MINS READ

Aleris Corporation reported revenues of $3,446 million in 2018 compared to $2,857 million in 2017. The increase was primarily attributable to increased volumes and higher average aluminium prices. Net loss of $92 million in 2018 compared to a net loss of $211 million in 2017.

Adjusted EBITDA increased from $201 million to $276 million due to strong demand, improved rolling margins, improved operating performance and a favorable metal environment in North America were partially offset by significantly higher freight costs in North America, the automotive ramp-up in Lewisport and the higher cost structure of the Lewisportfacility.

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Sean Stack, Chairman and CEO said: "Our global growth strategy delivered strong results in 2018 with record volumes and record adjusted EBITDA. Our Lewisport, Kentucky automotive facility is delivering products to customers and, in the fourth quarter, began to produce commercial shipments from the second of our two auto finishing lines at that facility. Additionally, we have seen the aerospace industry return to growth in the second half of the year and have benefited from deliveries under our multi-year aerospace agreements."

Capital expenditures decreased to $108 million from $208 million in the prior year period, as the North America ABS Project has been substantially completed.

The company expects segment income and Adjusted EBITDA in 2019 will be higher than 2018, as North America volumes continue to benefit from the mix shift to higher value-added ABS products and stable U.S. housing industry conditions, while global aerospace volumes are expected to benefit from a return to growth and higher volumes from our new multi-year contracts.

“In addition, beginning in 2019, common alloy products made by our North America segment are expected to benefit from recent duties imposed on imported common alloy products. We expect full year capital expenditures of approximately $120 million to $140 million. As a result of these factors, we expect to generate positive cash flow in 2019,” the company said in its press release.


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EDITED BY : HEENA IQBAL 2MINS READ

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