Aleris Reports One-Time Losses

Aleris International Inc., Beachwood, Ohio, has reported third quarter 2006 results that include “unfavorable special items” totaling more than $100 million.

The company’s third quarter net loss was $24.2 million, compared with reported net income of $31.5 million for the same quarter last year.

According to a release issued by the consumer of aluminum and zinc scrap, “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 [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.”

The results may be among the last to be reported by the firm, which in August entered into a definitive merger agreement through which privately held Texas Pacific Group will acquire Aleris for approximately $1.7 billion.

According to the Aleris news release, “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.”

Aleris itself resulted from the December 2004 merger of Imco Recycling Inc. and Commonwealth Industries Inc. Subsequently, Aleris has made several acquisitions, including those of Tomra Latasa Reciclagem, Alsco Holdings Inc., Alumitech Inc., selected assets of Ormet Corp. and the Corus Aluminum assets.