COMMONWEALTH INDUSTRIES ANTICIPATES LOWER THIRD QUARTER RESULTS.LOUISVILLE, Ky.--(BUSINESS WIRE)--Aug. 25, 1997--Commonwealth Industries, Inc. (Nasdaq/NM: CMIN Cmin Trough serum concentration, see there ) today announced that, primarily because of adverse market pricing conditions, the Company expects to report results for the third quarter of 1997 that will be substantially below the current consensus analyst earnings estimate of $.43 per share. Commonwealth plans to report third quarter results on October 15, 1997. While it is too early for the Company to predict with precision its third quarter results, it has become apparent in recent weeks that third quarter sales are being adversely affected by weaker pricing trends. As a result, Commonwealth expects its material margins to decline in excess of $0.01 per pound from the level experienced in the second quarter of this year, which in turn was down from the first quarter of 1997. Rather than meet lower prices, the Company decided to forego orders in several instances and to maintain its selling prices on the basis that they are justified by the Company's superior service, including its ability to satisfy the demand for shorter lead times. Partly as a result of not lowering its selling prices, the Company had lower shipments than anticipated in July. As a result, shipment volumes are expected to decline 5% to 10% in the third quarter versus the second quarter of 1997. As part of the Company's efforts to establish pricing leadership, Commonwealth initiated a price increase on August 19 of between $0.02 and $0.03 per pound effective for all orders deliverable in November 1997 and thereafter. The price increase applies to all of the Company's aluminum sheet products in all markets. The expected lower sales volumes in the third quarter are also due to some unplanned equipment outages. In particular, Commonwealth incurred unexpected delays in restarting its 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. hot mill following planned maintenance downtime in late June. For a short time following the restart of this mill, the Company also rejected an abnormally high number of products which did not meet specified tolerances. These delays and ensuing en·sue intr.v. en·sued, en·su·ing, en·sues 1. To follow as a consequence or result. See Synonyms at follow. 2. To take place subsequently. product reject problems cost the Company an estimated 3-4 million pounds of production. In addition, the Company experienced two unplanned cold mill outages at its Uhrichsville, Ohio Uhrichsville is a city in Tuscarawas County, Ohio, United States. The population was 5,662 at the 2000 census. Geography Uhrichsville is located at (40.395208, -81.349226)GR1. plant, which resulted in foregone fore·gone v. Past participle of forego1. adj. Having gone before; previous. Usage Note: The word foregone has recently developed a new meaning as a truncation of the phrase production estimated at 2-4 million pounds. Commonwealth Industries is one of North America's leading manufacturers of aluminum sheet for distributors and 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 has direct-chill casting facilities in Kentucky - 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. - and continuous casting Continuous casting is a refinement of the casting process for the continuous, high-volume production of metal sections with a constant cross-section. It allows lower-cost production of metal sections with better quality, due to finer control through automation of the casting mini-mills in Ohio and California. Commonwealth also is a leading manufacturer of innovative electrical wiring Electrical wiring in general refers to insulated conductors used to carry electricity, and associated devices. This article describes general aspects of electrical wiring as used to provide power in buildings and structures, commonly referred to as building wiring. products through its Alflex operations in California. CONTACT: Commonwealth Industries, Louisville William G. Toler, 502/589-8100 |
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