Reuters
Noranda Aluminum profit beats Street due to high demand
Edited by : AL CIRCLE
1 min read
Noranda Aluminum Holding Co reported second-quarter results that beat analysts' estimates as higher shipments of aluminum and flat-rolled products offset lower prices.
Aluminum prices on the London Metal Exchange dropped about 20 percent in the second quarter due to high inventories, prompting Wall Street analysts to lower their original profit estimates on companies such as Alcoa Inc and Noranda.
Second-quarter net profit fell to $25.3 million, or 36 cents per share, down from $47.4 million, or 69 cents a share, a year ago. Excluding items, the company earned 11 cents.
Second-quarter revenue fell 12 percent to $371.7 million, but rose 5 percent from the first quarter on higher shipments.
Analysts on average had expected a second-quarter profit of 9 cents a share on revenue of $355.21 million, according to Thomson Reuters I/B/E/S.
Noranda operates a mine in Jamaica that produces bauxite, which is then refined into alumina at its Gramercy, Louisiana plant. The alumina is then smelted into aluminum at its smelter near New Madrid, Missouri.
Shares of the company, which has a market value of $425.55 million, closed at $6.37 on Tuesday on the New York Stock Exchange.
Aluminum prices on the London Metal Exchange dropped about 20 percent in the second quarter due to high inventories, prompting Wall Street analysts to lower their original profit estimates on companies such as Alcoa Inc and Noranda.
Second-quarter net profit fell to $25.3 million, or 36 cents per share, down from $47.4 million, or 69 cents a share, a year ago. Excluding items, the company earned 11 cents.
Second-quarter revenue fell 12 percent to $371.7 million, but rose 5 percent from the first quarter on higher shipments.
Analysts on average had expected a second-quarter profit of 9 cents a share on revenue of $355.21 million, according to Thomson Reuters I/B/E/S.
Noranda operates a mine in Jamaica that produces bauxite, which is then refined into alumina at its Gramercy, Louisiana plant. The alumina is then smelted into aluminum at its smelter near New Madrid, Missouri.
Shares of the company, which has a market value of $425.55 million, closed at $6.37 on Tuesday on the New York Stock Exchange.
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