Aleris reports $24 million net loss
in third quarter
Aleris International, Inc. reported results for
the third quarter of 2006 and for the nine months ended September
30, 2006.
Their third quarter net loss was $24.2 million,
or $0.78 per share, at an estimated tax rate of 37.0%, compared
with reported net income of $31.5 million, or $1.01 per share, in
the third quarter of 2005, based on an estimated tax rate benefit
of 8.2%. Last year's reported third quarter earnings per share would
have been $0.59 using the 2006 estimated tax rate.
Unfavorable special items recorded during the
quarter aggregated $104.0 million and included $24.3 million of
unrealized losses on derivatives, $53.7 million of charges related
to refinancing debt for the acquisition of the downstream business
of Corus Group plc (Corus Aluminum), $33.2 million of charges for
the non-cash impact of recording Corus assets at fair value, and
$2.6 million of restructuring and other charges; offset partially
by a $9.8 million gain on currency hedges.
Adjusted earnings per share was $1.26 in the third
quarter of 2006 at the estimated tax rate of 37.0%, compared with
adjusted earnings per share of $0.82 in the prior year's third quarter
using an adjusted effective 2005 tax rate of 8.75%. Adjusted to
the estimated 2006 tax rate, last year's adjusted earnings per share
would have been $0.58.
On August 1, 2006 Aleris completed the acquisition
of Corus Aluminum for a purchase price of $887 million. Simultaneously,
Aleris entered into new credit agreements, the proceeds from which
were used to fund the acquisition and refinance substantially all
of Aleris's existing indebtedness.
Aleris incurred charges in the third quarter of
$53.7 million related to the refinancing.
On August 8, 2006 Aleris announced that it had
entered into a definitive merger agreement under which Texas Pacific
Group (TPG) would acquire all of the outstanding stock of Aleris
for approximately $1.7 billion plus the assumption of, or repayment
of approximately $1.6 billion of debt.
The transaction continues on track as all regulatory
requirements have been met. Closing of the transaction is expected
at the end of 2006 or early in 2007. |
