Commonwealth Sees Lower-than-expected Third Quarter Earnings.

LOUISVILLE, Ky.--(BUSINESS WIRE)--Sept. 30, 1999--

Commonwealth Industries, Inc. (Nasdaq/NM:CMIN) (the "Company") today announced it expects earnings for the third quarter of 1999 to be below the consensus analyst estimate of $0.44 per share. The Company expects actual results to be $0.28 to $0.32 below the consensus and will report full results for the third quarter on or about October 18, 1999.

The anticipated shortfall in earnings is due primarily to a reduction in metal margins in the aluminum business unit. The majority of the margin reduction is attributable to the effects of the Company's last-in, first-out (LIFO) method of inventory accounting during the recent rise in metal prices. Under the LIFO method of accounting, the cost of the most recently purchased metal flows through the income statement. During a period of rising prices, the most recently purchased metal is the highest cost metal.

Commenting on the announcement, Mark V. Kaminski, President and Chief Executive Officer, stated, "During the third quarter we continued essentially on track to return our aluminum business unit performance to 1997 levels. In January of this year the Company elected to adopt the LIFO method of accounting for all aluminum inventories. While we continue to view this as the preferable method, one of its results is that a portion of the increase in aluminum inventory value created during the past quarter will be reflected as an increase of approximately $5.0 million to our LIFO inventory reserve."

Commenting on the effects of Hurricane Floyd on its East Coast Alflex operations, Kaminski noted, "Our Alflex facility in Rocky Mount, North Carolina escaped damage from flood and wind, but has not escaped the aftermath of the devastation which has befallen our employees and the community at large and which disrupted transportation of finished goods and raw materials to and from our facility. We have undertaken a corporate-wide effort, headed by Roddy Macdonald, President of Alflex, to assist our employees in their efforts to deal with this catastrophe. Commonwealth will likely suffer some economic loss as a result of Hurricane Floyd, but we do not consider this significant at the present time."

Commonwealth Industries is one of North America's leading manufacturers of aluminum sheet for distributors and the transportation, construction and consumer durables end-use markets. The Company has direct-chill casting facilities in Kentucky one of the largest multi-purpose aluminum rolling mills in North America - and continuous casting mini-mills in Ohio and California. The Company is also a leading manufacturer of innovative electrical wiring products through its Alflex operations in California and North Carolina.

Certain statements set forth above, including, but not limited to, statements containing the words "anticipates," "expects," "will," "may," "sees" and similar words constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which the Company is unable to predict or control, that may cause the Company's actual results or performance to materially differ from any future results or performance expressed or implied by such forward-looking statements. These statements involve risks, uncertainties and other factors detailed from time to time in the Company's filings with the Securities and Exchange Commission. Such factors may include, without limitation, the effect of global economic conditions, the impact of competitive products and pricing, product development and commercialization, availability and cost of critical raw materials, the rate of technology change, product demand and market acceptance risks, capacity and supply constraints or difficulties, the effects of Y2K on the Company and third parties, and other risks as detailed in the Company's various filings with the Securities and Exchange Commission.