Wise metals reports for quarter.Wise Metals, based in Baltimore Baltimore, city (1990 pop. 736,014), N central Md., surrounded by but politically independent of Baltimore co., on the Patapsco River estuary, an arm of Chesapeake Bay; inc. 1745. , has posted net income for the first quarter of 2006 of $3.5 million, which includes a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact for FAS 133 (Accounting for Derivative Instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. and Hedging Activities). This compares to a net loss of $6.2 million in the first quarter of 2005, which includes a $3.6 million unfavorable impact for FAS 133. After adjusting for FAS 133, the company's net loss in the first quarter of 2006 was $1.2 million. Wise lost $2.6 million in the first quarter of 2005. In a statement, the company attributes the difference between first quarter earnings for 2006 and 2005 to "the effects of increased conversion pricing and production improvements offset by increased natural gas costs of $5.5 million and increased interest expenses of $1.1 million." Shipments of Wise Metals Group's aluminum beverage can A beverage can is most often an aluminium can manufactured to hold a single serving of a beverage. Overview The early metal beverage can was made out of steel (similar to a tin can) and had no pull-tab. stock, other rolled aluminum products and scrap decreased 14 percent to 169.9 million pounds in the first quarter of 2006 compared to 196.5 million for the same period in 2005. However, shipments of scrap at Wise Recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. increased 9 percent in the first quarter of 2006 relative to the first quarter of 2005, and common alloy alloy (ăl`oi, əloi`) [O. Fr.,=combine], substance with metallic properties that consists of a metal fused with one or more metals or nonmetals. shipments increased 11 percent. The increase in scrap and common alloy shipments was offset by a decrease in can sheet shipment volumes, which Wise attributes to its customers' reduction in inventory quantities from year-end levels combined with the effects of slightly lower contractual volumes, which resulted from negotiations to improve pricing. "Unlike the just-ended first quarter of 2006 during which the metal ceiling on aluminum had essentially no effect on our ability to pass through metal costs to customers, our cost for aluminum in the second and third quarters will be in excess of the price ceilings," Wise Metals Group Treasurer Ken Stastny says. "These cost increases can only be partially offset by our use of recycled aluminum scrap and continued improvements in productivity. As a result, we expect to incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. increased losses in the second and third quarters but are positioning the company to meet cash flow requirements throughout this period," he adds. |
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