Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Businessweek Archives

Acx Accentuates The Positive

Inside Wall Street


What ACX Technologies (ACX) did was bold, if unusual: It took a special charge of $70 million, or $2.84 a share, in the first quarter on the aluminum division it wants to sell to a yet-to-be-determined buyer. Instead of hurting the shares, the news drove them up, from 17 to 20 3/4 in a few days.

Steve Braverman, a general partner at Redwood Asset Management, explains that the early write-off demonstrates that ACX management has come close to finding a buyer for the aluminum unit. That clears the way, he says, for ACX to focus on its two fast-growing, money-making divisions: Graphic Packaging, which makes paperboard, folding carton, and flexible packaging products, and Coors Ceramics, a producer of advanced ceramic products for structural and electronic applications. And Golden Aluminum makes thin-strip aluminum sheets used for can ends or lids, tabs, and bodies for aluminum beverage and food cans. Unloading this unit positions ACX, spun off by Adolph Coors in 1992, as a growth stock, says Braverman, who sees the stock hitting 30 in six months.

Goldman Sachs analyst Cornelius Thornton was quick to raise his earnings estimates after ACX took the first-quarter charge. He upped his 1996 figure from $1 to $1.40 a share, and his 1997 estimate from $1.30 to $1.70. ACX's long-term outlook has improved substantially, he says.BY GENE G. MARCIALReturn to top

Return to top

blog comments powered by Disqus