International Inc. swung to a loss in the second quarter as
tight scrap and specification alloy spreads, an aerospace
inventory overhang and weaker-than-expected building and
construction demand dented results, it said Aug. 1.
Aleris recorded a net
loss of $11.7 million in the second quarter as revenue slipped
3.7 percent to $1.1 billion over the same period.
aluminum company said it expects scrap spreads in its North
American rolled products business to remain narrow in the third
quarter given weak London Metal Exchange prices for aluminum
and stubbornly weak aerospace demand (
amm.com, Aug. 1), as aircraft manufacturers
continue to chew through high levels of raw materials
But the company also
expects increased demand for value-added products from the
automotive sector and the North American building and
During a conference
call following the release of earnings results, Aleris
executives blamed the weak second-quarter showing from the U.S.
building and construction market on poor weather, and forecast
that the sector would ramp up in
the third quarter.
Aleris chairman and
chief executive officer Steven J. Demetriou said the company
performed well in the second quarter "despite continued
headwinds from metal and scrap spreads and sluggishness in the
global economy." The company expects "steady improvements" in
the second half of 2013 and into 2014, thanks largely to
forecast long-term growth in the aerospace and automotive
sectors, he said.
products business in Europe saw double-digit gains in shipping
volumes of heat exchangers, as well as plate and coil. "We
remain cautiously optimistic that these volumes bottomed out in
2012 and are now beginning to modestly rebound from cycle lows,
although pockets of soft demand still persist," Demetriou