Aleris International, Inc., a company that engages in the recycle of aluminum and zinc and manufactures aluminum sheet, zinc oxide, and zinc dust, is among the many companies now enjoying the benefits of Six Sigma.
In the third quarter of 2005, it posted again significant financial results. Because of this, Management decided to continue with its Six Sigma initiatives. The following are some of the benefits and savings:
*Net income totaled $31.5 million or $1.01 per diluted share for the third quarter 2005 compared with a reported net loss of $0.3 million or $(0.02) per diluted share in the third quarter of 2004. A reduction in the expected 2005 effective tax rate contributed $0.17 per share.
*Third quarter 2005 adjusted earnings per share were $0.82 utilizing the previously forecasted tax rate and compared to $0.14 in the prior year on a pro forma basis.
*The Company’s growth strategy accelerated since the end of the second quarter with the August 31 completion of the Tomra acquisition, the October 3 completion of the ALSCO Holdings, Inc. acquisition and the proposed acquisition of selected assets of the Ormet Corporation announced November 7.
*Net debt was reduced by $17.6 million during the third quarter, including the utilization of $17.4 million of cash to acquire Tomra during the quarter. Strong cash flow from operations has driven down net debt by $85.8 million since December 31, 2004. Pro forma for the acquisition of ALSCO, net debt to EBITDA excluding special items on a last twelve month basis is 1.9x at September 30, 2005 compared with 3.0x at year-end.
Aleris Announces Significantly Improved 3Q 2005 Net Income of $31.5 Million
