COMMONWEALTH ALUMINUM EXPECTS TO REPORT SIGNIFICANTLY HIGHER SECOND QUARTER EARNINGS; COMPANY SETTLES UTILITIES TAX CASE.LOUISVILLE, Ky.--(BUSINESS WIRE)--May 30, 1995--Commonwealth Aluminum Corporation (Nasdaq/NM:CALC (tool, mathematics) Calc - An extensible, advanced desk calculator and mathematical tool written in Emacs Lisp by Dave Gillespie <daveg@synaptics.com>. Calc runs as part of GNU Emacs. ) today announced that it expects its earnings from operations for the second quarter ending June 30, 1995, to be well ahead of the level reported for the same period last year and substantially above the current consensus analysts' estimate for the quarter. Mark V. Kaminski, President of Commonwealth Aluminum, said the Company's sales volume is running at a record level. With continued strong demand for aluminum sheet products and improved material margins, Commonwealth expects to report operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before in excess of $1.05 per share for the quarter versus analysts' estimates ranging from $.70 to $.80 and earnings of $.52 reported in the second quarter of 1994. "To some extent, the increase in earnings we expect to report for the second quarter reflects unusual market conditions early in 1995," Kaminski explained. "We believe that uncertain primary aluminum prices prompted greater demand for our finished product than might otherwise have been the case. More important factors, however, have been our ability to manage our product mix to enhance overall material margins and reduce unit cost through increased volume. "Clearly, these unusual market conditions are somewhat of a break away from the expected trend; therefore, we believe our material margins for 1995 could peak in the second quarter," he continued. "Nevertheless, with primary aluminum prices coming off a high point and demand returning to normal levels, we believe the outlook for the second half of 1995 remains good, but our growth will not be at the unusual rate we anticipate reporting for the second quarter. Currently, our plant is operating at a record volume and, as a result, we expect to increase shipments of aluminum product to a range of between 610-620 million pounds for the year, up 8% from 570 million pounds in 1994." Kaminski also announced that the Company has reached a settlement with the Commonwealth of Kentucky pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to disputed utility taxes. As a result of the settlement, Commonwealth Aluminum will reverse a previous accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. and record an after-tax credit of approximately $2 million or $.19 per share in the second quarter. This credit is not included in the expected operating earnings for the quarter discussed above. Commonwealth Aluminum is one of North America's leading manufacturers of aluminum sheet for the transportation, construction and consumer durables Consumer durables Consumer products that are expected to last three years or more, such as an automobile or a home appliance. consumer durables See durable goods. end-use markets. The Company manufactures a variety of common alloy products in the form of aluminum sheet at its rolling mill rolling mill: see steel. in Lewisport, Kentucky Lewisport is a city in Hancock County, Kentucky, along the Ohio River. The population was 1,639 at the 2000 census. It is included in the Owensboro, Kentucky Metropolitan Statistical Area. Lewisport's mayor is Chad Gregory, and the constable is Danny Case. , one of the largest multi-purpose aluminum rolling mills in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . CONTACT: Commonwealth Aluminum Corp., Louisville W. Peter Day, 502/589-8125 |
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