Commonwealth Posts Decline for Quarter

Commonwealth Industries, Inc. announced results for the first quarter. Net sales for the first quarter declined 4 percent to $212.0 million from $221.9 million in the same period last year.

Gross profit for the quarter fell 12 percent to $9.3 million from $10.5 million in the year-earlier quarter, while the operating loss increased to $3.2 million from $0.7 million in the same period last year.

The net loss for the first quarter of 2003 was $6.5 million, compared with a net loss of $4.4 million in the prior-year period.

Commonwealth's aluminum shipments fell 12 percent to 183.7 million pounds in the first quarter of 2003 compared with 209.5 million pounds in the year-earlier period, while shipments of electrical conduit products declined 9 percent to 114.9 million feet versus 126.0 million feet in the first quarter of 2002.

Mark V. Kaminski, president and CEO, said, "While we had anticipated a challenging first quarter, we were disappointed by the continued weakness in Alflex's key markets, particularly commercial construction, and its impact on the financial results for both Alflex and Commonwealth Industries as a whole. At the same time, we were pleased to see our aluminum business increase its profitability during the quarter, a noteworthy accomplishment considering the reduction in sales volume that resulted from ongoing economic uncertainties."

The company's gross profit margin for the first quarter declined to 4.4 percent from 4.8 percent in the year-earlier period, reflecting an improvement in its aluminum business unit, which offset a lower gross profit margin in its electrical products business unit. The gross profit margin for the aluminum business increased to 3.7 percent in the first quarter of 2003 from 2.6 percent in the same period last year, aided by firmer pricing, lower primary metal costs, and better scrap availability.