Aleris in red despite stronger auto sales
Aug 05, 2014 | 04:44 PM
| Nathan Laliberte
NEW YORK Aleris International Inc. posted a net loss in the second quarter as a weaker mix of rolled products sales coupled with reduced rolling margins continued to offset significantly higher automotive volumes.
The Cleveland-based aluminum producer posted a net loss of $17.5 million for the three months ended June 30 vs. a net loss of $11.7 million in the same period last year despite revenue that increased 8.7 percent to $1.23 billion from $1.13 billion.
"Stronger overall volumes are confirming our expectation that demand would strengthen in 2014, particularly in our automotive business, which has grown significantly," chairman and chief executive officer Steven J. Demetriou said in a statement accompanying the earnings report. However, operational issues related to inefficiencies at several production facilities and compressed margins in rolled products prevented the company from "fully capitalizing on the improved demand and we are taking steps to address these issues," he said.....
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