Aleris Reports Second Quarter Results

Aleris International, Inc. reported results for the second quarter ended June 30, 2007.

Revenues for second quarter were $1.6 billion, compared with $1.0 billion in second quarter 2006, a 60 percent increase, driven primarily by the August 2006 acquisition of the downstream aluminum business of Corus Group plc.

The company also announced that it expanded its inventory hedging program to protect the company’s inventory program.

During its discussions , the company also noted that it is making progress on its growth initiatives, including its acquisitions of EKCO Products and Wabash Alloys.

Aleris reported that year-to-date, revenues were $3.2 billion compared with $1.9 billion last year, while EBITDA excluding special items increased 23 percent to $222.3 million from $181.1 million.

Commenting on Aleris's second quarter results, Steven Demetriou, chairman and CEO, said, "We continue to be pleased with the growth and development of Aleris during the second quarter of 2007. Though we were adversely impacted by destocking in our distribution segment and challenging housing and transportation segments in North America, we continue to make progress on the integration of the Corus Aluminum acquisition in Europe and cost reduction improvements throughout our global operations which resulted in record free cash flow during the quarter. We now expect to achieve $65 million in synergies related to Corus, an increase from our previous estimate of $45 million." Demetriou added.