March 03, 2015 6:12 PM ET

Metals and Mining

Company Overview of Aleris Corporation

Company Overview

Aleris Corporation manufactures and sells aluminum rolled and extruded products primarily in North America, Europe, and China. The company operates through Rolled Products North America, Rolled Products Europe, Rolled Products Asia Pacific, Extrusions, Recycling and Specification Alloys North America, and Recycling and Specification Alloys Europe. It offers rolled aluminum and coated products for the building and construction, distribution, transportation, and consumer durables sectors; and for aerospace plate and sheet, brazing sheet, automotive sheet, and heat treated plate for engineering uses, as well as for the packaging industries. The company also provides soft and hard alloy extruded...

25825 Science Park Drive

Suite 400

Cleveland, OH 44122

United States

Founded in 1985

7,200 Employees

Phone:

216-910-3400

Fax:

216-910-3650

Key Executives for Aleris Corporation

Chairman, Chief Executive Officer and Chairman of Executive Committee
Age: 56
Chief Financial Officer, Executive Vice President and Treasurer
Age: 40
Vice President of Operations
Age: 53
Executive Vice President and Chief Executive Officer of Rolled Products North America
Age: 47
Executive Vice President and Chief Executive Officer of Europe & Asia Pacific
Age: 57
Compensation as of Fiscal Year 2014.

Aleris Corporation Key Developments

Aleris Corporation Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2014; Provides Earnings Guidance for the Year 2014 and Capital Expenditures Guidance for the Year Ending December 31, 2014

Aleris Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2014. For the quarter, the company reported revenues of $1,277.5 million compared to $1,073.4 million a year ago. Operating income was $39.7 million compared to $24.8 million a year ago. Income before income taxes was $24.6 million compared to loss before income taxes of $5.8 million a year ago. Net income attributable to the company was $26.5 million compared to net loss attributable to the company of $7.3 million a year ago. Total adjusted EBITDA was $82.7 million compared to $67.6 million a year ago. Net cash used in operating activities was $29.3 million compared to net cash provided by operating activities of $33.5 million a year ago. Payments for property, plant and equipment were $30.6 million compared to $40.6 million a year ago. For the nine months period, the company reported revenues of $3,557.9 million compared to $3,311.1 million a year ago. Operating income was $69.2 million compared to $77.2 million a year ago. Income before income taxes was $1.5 million compared to $1.7 million a year ago. Net loss attributable to the company was $8.6 million compared to $8.1 million a year ago. Total adjusted EBITDA was $206.7 million compared to $210.1 million a year ago. Net cash used in operating activities was $36.7 million compared to $17.3 million a year ago. Payments for property, plant and equipment were $109.0 million compared to $182.8 million a year ago. Adjusted EBITDA decreased to $207 million from $210 million during the prior year period as a result of a weaker mix of products sold, which more than offset a 4% increase in overall volumes, and lower rolling margins, as well as operational issues and harsh winter weather which limited ability to offset inflation with productivity gains. The company estimates fourth quarter 2014 segment income and adjusted EBITDA will be higher than the fourth quarter of 2013. Factors influencing anticipated fourth quarter 2014 performance compared to the prior year include: improved building and construction volumes; demand for auto body sheet is expected to continue to increase; aerospace sales mix and margin pressures; competitive imports negatively impacting margins; and improved scrap flow and spreads. Capital expenditures during the fourth quarter of 2014 are expected to be higher than the fourth quarter of 2013 and the previous quarters of 2014 primarily due to the auto body sheet investment in Lewisport, Kentucky. The company currently estimates capital spending of $185 million for the year ending December 31, 2014.

Aleris Breaks Ground on $350 Million Automotive Expansion in Lewisport, Kentucky

Aleris on Oct. 29, 2014 broke ground on an expansion of its facility in Lewisport, Kentucky. The company is investing $350 million to equip the facility with additional heat treatment and finishing capabilities to produce wide aluminum auto body sheet for the automotive industry. The investment positions Aleris to meet anticipated significant growth in North American automotive demand as the industry pursues broader aluminum use for the production of lighter, more fuel-efficient vehicles. Aleris is currently a leading supplier to the European premium auto industry, which has led the transition to aluminum driven by tighter emissions standards. The company expects to begin construction on the project this fall, with a goal of shipping automotive body sheet material to customers by early 2017. When fully operational, the new facility will allow for the production of 480 million pounds of aluminum auto body sheet annually. The company's investment will include the addition of heat treatment and finishing capabilities, including a new wide cold mill, two continuous annealing lines and an automotive innovation center. Including Lewisport, the company has 11 rolled aluminum products facilities in North America, the majority of which serve building & construction, truck-trailer, and metal distribution customers. Upon completion of the facility's upgrade, Lewisport will be the company's first site in North America that is equipped with aluminum auto body sheet finishing capabilities.

Aleris Announces Leadership Changes, with Effect from November 1, 2014

Aleris announced that Roeland Baan, who currently leads the company's businesses in Europe and Asia Pacific, will become executive vice president, CEO of Asia Pacific to help accelerate the ramp-up of the company's aluminum plate mill in Zhenjiang, China and determine the next phase of investment for that business. Ingrid Jorg, senior vice president and general manager of Rolled Products Europe, has been promoted to executive vice president and CEO of Rolled Products Europe. Both will report directly to Chairman and CEO Steve Demetriou. The Aleris global technology and aerospace organizations along with the Extrusions business will also report directly to Baan. Jorg will continue to oversee the global automotive segment for the company. The new roles will take effect November 1, 2014.

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