Aleris reports Q2 and H1 results: net loss drops, end user demand stable

<p>Aleris Corporation reported results for the Second Quarter and First Half ended June 30, 2016.<br />Though Aleris is making net loss consecutively, net loss decreased to $13 million in the Q2 2016 from $19 million in Q2 2015. Adjusted EBITDA was $65 million for Q2 2016 compared to $60 million in Q2 2015. Though rising volumes in global aerospace &amp; automotive sector and regional plate and sheet sector in Europe increased Adjusted EBITDA of about $5 million, production issues and bottlenecks stopped them from fully capitalizing on strong demand from the end-uses.<br />&nbsp;<br />As for the Year-to-date results, revenues was approximately $1,367 million compared to $1,520 million for the same period in 2015. The drop of 10 per cent was primarily due to lower average aluminum prices included in the invoiced prices. The revenue decrease was partially offset by a 4 per cent increase in volumes, a good mix of sales, including increased global automotive and aerospace sale volumes, and improved rolling margins.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/aleris.jpg" alt="News" width="512" height="250" /><br /><br />Adjusted EBITDA decreased from $115 million in 2015 to $109 million in the current year as a result of unfavorable year-over-year scrap spreads and currency movements. These decreases were partially offset by an increase in volumes, a favorable mix of products sold and improved rolling margins.<br /><br />Aleris however, has a positive outlook for the second half of the year and the performance is expected to exceed H2 2015. Global aerospace volumes and building and construction volume in North America is expected to improve considerably. The company expects order for plate and sheet products and building and construction for Europe to outpace last year.<br />However, they believe unfavourable metal spreads and tight scrap supply will continue to impact results in the coming half.<br />&nbsp; <br />President and CEO Sean Stack is very positive about the results in his comments, "We are pleased with our results in the second quarter as we see favorable demand trends across most of our customer base which more than offset the macro headwinds from material prices." "Our new multi-year agreement with Airbus to supply higher volumes and an expanded product range from two continents validates both our growth strategy and technology focus. Our operations in China posted their strongest results in company history while construction progress on our North American autobody sheet project remains on track. Both initiatives are already enhancing our ability to serve customers,&rdquo; he added.<br /><br /></p> <p><span style="border-radius: 2px; text-indent: 20px; width: auto; padding: 0px 4px 0px 0px; text-align: center; font: bold 11px/20px 'Helvetica Neue',Helvetica,sans-serif; color: #ffffff; background: #bd081c url('data:image/svg+xml;base64,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') no-repeat scroll 3px 50% / 14px 14px; position: absolute; opacity: 1; z-index: 8675309; display: none; cursor: pointer;">Save</span></p>