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Ormet Says Financial Results Hurt by Hurricane Dean
Ormet Corp. (ORMT), the aluminum producer that emerged from bankruptcy 18 months ago, said results will be hurt ``in the near term'' because Hurricane Dean disrupted alumina shipments to its smelter in Hannibal, Ohio.
Ormet sold $35 million in notes and amended its credit line with lenders after metals prices had a ``dramatic drop'' and the hurricane delayed the startup of the smelter's sixth potline, the company said today in a statement.
``These agreements will provide us with the additional liquidity that we need to restart the sixth potline,'' Chief Executive Officer Michael Tanchuk said in the statement.
Ormet, based in Canonsburg, Pennsylvania, restarted the 254,000-ton-a-year smelter in December after signing a new power agreement with American Electric Power Co. The company expects to restart the sixth potline in the next couple of months, taking the facility back to full capacity.
Ormet shares fell $1, or 5.7 percent, to $16.50 at 12:49 p.m. in over-the-counter trading. The shares gained 33 percent this year through yesterday.
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