Noranda reports second quarter 2011 results

Business Wire Natural Resources News | July 27, 2011 | 12:33 pm Base Metals Europe Aluminum 

Noranda Aluminum Holding Corporation (NYSE: NOR) today reported results for second quarter and first six months of 2011.

“Our upstream integration and continuing focus on growth and productivity enabled us to convert higher second quarter aluminum prices and solid customer demand into sequential and year-over-year improvements in revenue, profitability, and liquidity,” said Layle K. (Kip) Smith, Noranda’s President and Chief Executive Officer. “These results validate our belief that our strategy of integration and cost independence from the LME, combined with our passionate focus on productivity and growth, are the foundation for short term results and longer term, sustainable value creation.”

Noranda reported second quarter 2011 net income of $47.4 million ($0.69 per diluted share), compared to second quarter 2010 net income of $6.9 million ($0.14 per diluted share). Excluding special items, Noranda reported second quarter 2011 net income of $31.2 million ($0.46 per diluted share). Excluding special items, second quarter 2010 net income was $10.9 million ($0.22 per diluted share).

Noranda reported first six months of 2011 net income of $85.7 million ($1.26 per diluted share), compared to first six months of 2010 net income of $6.8 million ($0.14 per diluted share). Excluding special items Noranda reported first six months of 2011 net income of $55.0 million ($0.81 per diluted share). Excluding special items, first six months of 2010 net income was $12.9 million ($0.27 per diluted share).

 Special items during second quarter and first six months 2010 and 2011 are outlined below (in millions):
Three months ended June 30, Six months ended June 30,
2010 2011 2010 2011
$ $ $ $
Increase (decrease) to net income Increase (decrease) to net income
Pre-tax impact of special items:
Restructuring (3.2 ) — (7.6 ) —
Loss on debt repurchase (2.5 ) — (2.6 ) —
Management agreement termination (12.5 ) — (12.5 ) —
Modification of stock options (3.2 ) — (3.2 ) —
Transaction related legal costs (5.2 ) — (5.5 ) —
Gain on hedging activities 20.6 24.3 22.3 46.1
Total pre-tax impact of special items (6.0 ) 24.3 (9.1 ) 46.1
Income tax impact of special items 2.0 (8.1 ) 3.0 (15.4 )
After-tax impact of special items (4.0 ) 16.2 (6.1 ) 30.7

Second Quarter 2011 Results

Sales for second quarter 2011 were $426.3 million, compared to $394.6 million in first quarter 2011 and $334.9 million in second quarter 2010.

  • Compared to first quarter 2011, second quarter 2011 sales growth is primarily the result of higher realized prices for aluminum and higher third-party shipment volumes in the flat rolled products segment.
  • Compared to second quarter 2010, second quarter 2011 sales growth is primarily the result of higher realized prices for aluminum and higher third-party shipment volumes in the bauxite, primary aluminum and flat rolled products segments.

Total second quarter segment profit was $88.5 million, compared to $82.1 million in first quarter 2011, and $62.5 million in second quarter 2010.

  • Compared to first quarter 2011, second quarter 2011 results reflect the favorable impact from higher LME aluminum prices and Midwest transaction premiums. The favorable impact of higher prices more than offset the impact from a seasonal peak power surcharge and higher input costs such as carbon-based products, energy, and chemical products, which were consistent with management’s expectations.
  • Compared to second quarter 2010, second quarter 2011 results reflect higher LME prices and Midwest transaction premiums, and the impact of the Company’s CORE productivity improvement and cost reduction initiatives. These favorable items more than offset the impact of higher input costs such as carbon-based products, energy, and chemical products.
Quarter First Six Months
Q2 2010 Q1 2011 Q2 2011 2010 2011
Key primary aluminum products segment metrics:
Average realized Midwest transaction price (per pound) $ 1.04 $ 1.18 $ 1.26 $ 1.04 $ 1.22
Integrated net cash cost for primary aluminum products (per pound shipped) $ 0.66 $ 0.66 $ 0.70 $ 0.69 $ 0.68
Total primary aluminum shipments (pounds, in millions) 146.5 143.0 144.0 267.3 287.0
Segment profit (loss) (in millions):
Bauxite $ 4.6 $ 6.4 $ 6.0 $ 12.3 $ 12.4
Alumina refining 19.1 22.9 27.6 25.8 50.5
Primary aluminum products 31.2 47.8 48.0 57.6 95.8
Flat rolled products 14.6 13.5 16.2 25.8 29.7
Corporate (7.3 ) (6.6 ) (7.2 ) (13.7 ) (13.8 )
Intersegment profit eliminations 0.3 (1.9 ) (2.1 ) (2.4 ) (4.0 )
Total $ 62.5 $ 82.1 $ 88.5 $ 105.4 $ 170.6

Bauxite. Segment profit in second quarter 2011 was $6.0 million, compared to $6.4 million in first quarter 2011, and $4.6 million in second quarter 2010.

Compared to first quarter 2011, second quarter 2011 segment profit reflected the offsetting effects of an improvement in bauxite prices, a small decrease in total shipments and a slight increase in cost per metric tonne shipped.

Compared to second quarter 2010, second quarter 2011 segment profit reflected an increase in third party shipments over the prior year, when the segment’s third party customer was unable to accept delivery of committed quantities.

Alumina refining. Segment profit in second quarter 2011 was $27.6 million, compared to $22.9 million in first quarter 2011 and $19.1 million in second quarter 2010.

Alumina segment profit results improved $4.7 million in second quarter 2011 compared to first quarter 2011. This improvement was driven by a $9.8 million favorable impact to revenue from LME-indexed smelter grade alumina sales, partially offset by the effects of increased costs for natural gas and chemical products and lower sales volumes.

Compared to second quarter 2010, second quarter 2011 alumina segment profit reflects a $9.4 million favorable impact to revenue from LME-indexed smelter grade alumina sales and CORE savings, partially offset by the effects of increased costs of bauxite, natural gas and chemical products and lower sales volumes.

Primary aluminum products. Segment profit in second quarter 2011 was $48.0 million, compared to $47.8 million in first quarter 2011, and $31.2 million in second quarter 2010.

Compared to first quarter 2011, second quarter 2011 primary aluminum results reflect a 6% increase in average price per pound offset by an 8% increase in cost per pound.

  • The increase in revenue per pound was driven by a higher realized Midwest transaction price.
  • On a stand-alone segment basis, cost per pound increased primarily because a rising LME increased the transfer price on alumina sold from Gramercy to New Madrid.
  • Consistent with previous years, second quarter 2011 primary aluminum segment results reflect one month seasonal peak power rates, or approximately $0.03 per pound, at the Company’s New Madrid smelter. Third quarter results will reflect the full impact of these seasonal peak power rates, or approximately $0.11 per pound in total. There are no seasonal peak power rates in first and fourth quarters.
  • Upward cost pressure for carbon-based inputs, such as coke, had a $0.03 impact on cost per pound relative to first quarter 2011. The Company continues to expect upward pressure on carbon-based products costs for the remainder of 2011.

On a stand-alone segment basis, primary aluminum segment profit in second quarter 2011 compared to second quarter 2010 was significantly impacted by increased realized prices and higher sales volume, partially offset by increased raw materials inputs costs, such as alumina, carbon-based products, chemical products, and energy costs.

Flat rolled products. Segment profit in second quarter 2011 was $16.2 million, compared to $13.5 million in first quarter 2011, and $14.6 million in second quarter 2010. Second quarter 2011 flat rolled products results reflect a continuation of strong seasonal demand patterns, as shipments increased 10% over first quarter 2011 while fabrication premiums and conversion costs both showed incremental improvement.

Corporate. Second quarter 2011 corporate costs were $7.2 million, compared to $6.6 million in first quarter 2011, and $7.3 million in second quarter 2010. These fluctuations are primarily due to variability in legal and consulting fees.

Net Income Reconciliation. The following table reconciles segment profit to net income, excluding the effects of special items.
Three months ended June 30, Six months ended June 30,
2010 2011 2010 2011
$ $ $ $
Total segment profit 62.5 88.5 105.4 170.6
Depreciation and amortization (25.1 ) (24.5 ) (51.2 ) (48.1 )
Last in, first out and lower of cost or market inventory adjustments (9.6 ) (9.0 ) (10.7 ) (19.2 )
Non-cash pension, accretion and stock compensation (2.6 ) (3.3 ) (6.2 ) (7.0 )
Restructuring, relocation and severance (0.2 ) (0.2 ) (0.7 ) (0.6 )
Consulting and sponsor fees 0.6 (0.1 ) (0.7 ) (0.4 )
Other, net (0.8 ) 1.2 1.3 (1.3 )
Operating income, excluding special items 24.8 52.6 37.2 94.0
Interest expense, net 8.6 5.5 17.8 11.2
Pre-tax income, excluding special items 16.2 47.1 19.4 82.8
Income tax 5.3 15.9 6.5 27.8
Net income, excluding special items 10.9 31.2 12.9 55.0
Earnings per share, excluding special items 0.22 0.46 0.27 0.81

Liquidity

At June 30, 2011, the Company had $84.8 million of cash and cash equivalents and $215.2 million of available borrowing capacity under its revolving credit facility.

Operating activities generated $55.5 million of cash in the second quarter 2011, compared to $21.1 million in first quarter 2011, and $118.4 million in second quarter 2010. Second quarter 2010 included $105.9 million of cash settlements received related to aluminum hedges.

  • In second quarter 2011, the Company reported $82.5 million of Adjusted EBITDA, which consists of $88.5 million of total segment profit less $6.0 million of cash payments on natural gas hedges.
  • During second quarter 2011, the Company made $13.5 million of pension funding, interest and other payments and $36.9 million of tax payments and generated $23.4 million from operating working capital.

Second quarter 2011 capital expenditures totaled $15.8 million, including $0.9 million of expenditures for the New Madrid capacity expansion and $1.1 million for the St. Ann port expansion projects.

On May 15, 2011, Noranda AcquisitionCo issued $8.9 million in AcquisitionCo Notes as payment-in-kind for interest due May 15, 2011. For subsequent periods after May 15, 2011, Noranda AcquisitionCo must pay all interest in cash.

The Company’s net debt (defined as debt less cash) to equity ratio was 1.0 to 1 at June 30, 2011, and its net debt (defined as debt less cash) to trailing twelve month Adjusted EBITDA ratio was 1.3 to 1.

NORANDA ALUMINUM HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollars in millions, except per share data and where noted)
(unaudited)
Three months ended June 30, Six months ended June 30,
2010 2011 2010 2011
$ $ $ $
Statements of operations data (unaudited, in millions):
Sales 334.9 426.3 636.4 820.9
Operating costs and expenses:
Cost of sales 291.0 353.1 555.9 681.4
Selling, general and administrative expenses 43.1 20.6 72.1 45.5
Total operating costs and expenses 334.1 373.7 628.0 726.9
Operating income 0.8 52.6 8.4 94.0
Other (income) expense:
Interest expense, net 8.6 5.5 17.8 11.2
Gain on hedging activities, net (20.6 ) (24.3 ) (22.3 ) (46.1 )
Loss on debt repurchase 2.5 — 2.6 —
Total other income (9.5 ) (18.8 ) (1.9 ) (34.9 )
Income before income taxes 10.3 71.4 10.3 128.9
Income tax expense 3.4 24.0 3.5 43.2
Net income 6.9 47.4 6.8 85.7
Net income per common share:
Basic 0.14 0.71 0.15 1.28
Diluted 0.14 0.69 0.14 1.26
Weighted-average common shares outstanding (in millions):
Basic 49.09 66.93 46.44 66.88
Diluted 50.10 68.32 47.08 68.22
Sales by segment (in millions):
Bauxite 27.6 36.4 55.2 74.5
Alumina refining 95.8 109.2 187.5 213.1
Primary aluminum products 161.7 192.6 295.1 373.4
Flat rolled products 140.8 173.7 266.6 325.1
Eliminations (91.0 ) (85.6 ) (168.0 ) (165.2 )
Total 334.9 426.3 636.4 820.9
Segment profit (loss) (in millions):
Bauxite 4.6 6.0 12.3 12.4
Alumina refining 19.1 27.6 25.8 50.5
Primary aluminum products 31.2 48.0 57.6 95.8
Flat rolled products 14.6 16.2 25.8 29.7
Corporate (7.3 ) (7.2 ) (13.7 ) (13.8 )
Eliminations 0.3 (2.1 ) (2.4 ) (4.0 )
Total 62.5 88.5 105.4 170.6
Financial and other data:
Average realized Midwest transaction price (per pound) 1.04 1.26 1.04 1.22
Integrated net cash cost for primary aluminum products (per pound shipped) 0.66 0.70 0.69 0.68
Third party shipments:
Bauxite (kMts) 333.7 617.9 822.2 1,234.0
Alumina refining (kMts) 170.4 156.0 342.6 322.0
Primary aluminum products (pounds, in millions) 113.1 129.3 208.2 259.2
Flat rolled products (pounds, in millions) 91.9 100.1 175.7 191.4
Intersegment shipments:
Bauxite (kMts) 726.3 608.4 1,254.3 1,269.0
Alumina refining (kMts) 127.9 132.1 229.2 257.0
Primary aluminum products (pounds, in millions) 33.4 14.7 59.1 27.8

 

 
NORANDA ALUMINUM HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(in millions, except par value)
(unaudited)
December 31, 2010 June 30, 2011
$ $
ASSETS
Current assets:
Cash and cash equivalents 33.8 84.8
Accounts receivable, net 131.6 149.6
Inventories, net 201.1 210.2
Taxes receivable — 2.9
Prepaid expenses 12.9 20.5
Other current assets 19.2 29.2
Total current assets 398.6 497.2
Property, plant and equipment, net 719.9 701.6
Goodwill 137.6 137.6
Other intangible assets, net 73.0 70.1
Other assets 85.6 87.9
Total assets 1,414.7 1,494.4
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable 95.7 134.0
Accrued liabilities 54.9 57.7
Taxes payable 4.8 —
Derivative liabilities, net 23.2 22.8
Deferred tax liabilities 48.5 52.2
Total current liabilities 227.1 266.7
Long-term debt 419.7 428.5
Long-term derivative liabilities, net 18.4 10.1
Pension and other post-retirement liabilities 116.0 115.5
Other long-term liabilities 57.9 55.8
Deferred tax liabilities 277.9 261.4
Common stock subject to redemption (0.2 shares at December 31, 2010 and at June 30, 2011) 2.0 2.0
Shareholders’ equity:
Preferred stock (25.0 shares authorized, $0.01 par value; no shares outstanding at December 31, 2010 and at June 30, 2011) — —
Common stock (200.0 shares authorized; $0.01 par value; 66.81 shares issued and outstanding at December 31, 2010, 67.21 shares issued and outstanding at June 30, 2011, including 0.2 shares subject to redemption at December 31, 2010 and June 30, 2011) 0.7 0.7
Capital in excess of par value 227.7 232.0
Retained earnings (accumulated deficit) (8.2 ) 77.5
Accumulated other comprehensive income 69.5 38.2
Total shareholders’ equity 289.7 348.4
Non-controlling interest 6.0 6.0
Total equity 295.7 354.4
Total liabilities and equity 1,414.7 1,494.4

 

 
NORANDA ALUMINUM HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
Three months ended June 30, Six months ended June 30,
2010 2011 2010 2011
$ $ $ $
OPERATING ACTIVITIES
Net income 6.9 47.4 6.8 85.7
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization 25.1 24.5 51.2 48.1
Non-cash interest expense 12.3 9.6 13.2 10.3
Last in, first out and lower of cost or market inventory adjustments 9.6 9.0 10.7 19.2
Loss on disposal of assets 0.4 0.4 1.9 1.5
Gain on hedging activities, net of cash settlements (17.3 ) (31.0 ) (4.5 ) (58.0 )
Settlements from hedge terminations, net 105.9 — 164.6 —
Loss on debt repurchase 2.5 — 2.6 —
Deferred income taxes (2.6 ) 5.2 (2.6 ) 5.4
Excess tax benefit related to share-based payment arrangements — (0.6 ) — (0.7 )
Stock compensation expense 3.6 1.5 4.0 3.5
Changes in other assets (7.4 ) (1.1 ) (7.7 ) (6.9 )
Changes in pension, other post-retirement liabilities and other long-term liabilities (6.2 ) (5.4 ) 4.3 (2.3 )
Changes in operating assets and liabilities:
Accounts receivable, net (5.5 ) 11.1 (32.4 ) (18.0 )
Inventories, net (11.6 ) (11.7 ) (14.5 ) (28.6 )
Taxes receivable and taxes payable (8.2 ) (19.1 ) (8.4 ) (7.1 )
Other current assets (6.5 ) (14.5 ) 16.8 (18.1 )
Accounts payable 12.9 24.0 19.7 40.4
Accrued liabilities 4.5 6.2 (6.7 ) 2.2
Cash provided by operating activities 118.4 55.5 219.0 76.6
INVESTING ACTIVITIES
Capital expenditures (14.8 ) (15.8 ) (27.8 ) (29.3 )
Proceeds from sale of property, plant and equipment 0.2 2.4 0.2 2.4
Cash used in investing activities (14.6 ) (13.4 ) (27.6 ) (26.9 )
FINANCING ACTIVITIES
Proceeds from issuance of common shares 82.8 0.6 82.9 0.6
Repayments on revolving credit facility — — (215.9 ) —
Repayment of long-term debt (186.4 ) — (193.9 ) —
Excess tax benefit related to share-based payment arrangements — 0.6 — 0.7
Cash provided by (used in) financing activities (103.6 ) 1.2 (326.9 ) 1.3
Change in cash and cash equivalents 0.2 43.3 (135.5 ) 51.0
Cash and cash equivalents, beginning of period 31.5 41.5 167.2 33.8
Cash and cash equivalents, end of period 31.7 84.8 31.7 84.8

 

 
NORANDA ALUMINUM HOLDING CORPORATION
SEGMENT RESULTS
(in millions)
(unaudited)
Three months ended June 30, 2010
Bauxite Alumina refining Primary aluminum products Flat rolled products Corporate Eliminations Consolidated
$ $ $ $ $ $ $
Sales:
External customers 10.2 55.8 128.1 140.8 — — 334.9
Intersegment 17.4 40.0 33.6 — — (91.0 ) —
Total sales 27.6 95.8 161.7 140.8 — (91.0 ) 334.9
Segment profit (loss) 4.6 19.1 31.2 14.6 (7.3 ) 0.3 62.5
Depreciation and amortization 2.6 5.0 12.1 5.2 0.2 — 25.1
Capital expenditures 1.4 2.6 7.7 2.7 0.4 — 14.8
Three months ended June 30, 2010
Bauxite Alumina refining Primary aluminum products Flat rolled products Corporate Eliminations Consolidated
$ $ $ $ $ $ $
Segment profit (loss) 4.6 19.1 31.2 14.6 (7.3 ) 0.3 62.5
Depreciation and amortization (2.6 ) (5.0 ) (12.1 ) (5.2 ) (0.2 ) — (25.1 )
Last in, first out and lower of cost or market inventory adjustments — — (6.9 ) (2.7 ) — — (9.6 )
Loss on disposal of assets — — (0.4 ) — — — (0.4 )
Non-cash pension, accretion and stock compensation (0.2 ) (0.2 ) (1.0 ) (0.7 ) (3.7 ) — (5.8 )
Restructuring, relocation and severance (3.0 ) — — — (0.3 ) — (3.3 )
Consulting and sponsor fees — — — — (17.1 ) — (17.1 )
Cash settlements on hedging transactions — — — 0.2 — — 0.2
Other, net (0.1 ) 0.1 0.1 (0.2 ) (0.2 ) (0.3 ) (0.6 )
Operating income (loss) (1.3 ) 14.0 10.9 6.0 (28.8 ) — 0.8
Interest expense, net 8.6
Gain on hedging activities, net (20.6 )
Loss on debt repurchase 2.5
Total other income (9.5 )
Income before income taxes 10.3

 

 
 
Three months ended June 30, 2011
Bauxite Alumina refining Primary aluminum products Flat rolled products Corporate Eliminations Consolidated
$ $ $ $ $ $ $
Sales:
External customers 17.8 60.5 174.3 173.7 — — 426.3
Intersegment 18.6 48.7 18.3 — — (85.6 ) —
Total sales 36.4 109.2 192.6 173.7 — (85.6 ) 426.3
Segment profit (loss) 6.0 27.6 48.0 16.2 (7.2 ) (2.1 ) 88.5
Depreciation and amortization 2.8 5.2 11.6 4.6 0.3 — 24.5
Capital expenditures 2.3 3.0 6.1 3.7 0.7 — 15.8
Three months ended June 30, 2011
Bauxite Alumina refining Primary aluminum products Flat rolled products Corporate Eliminations Consolidated
$ $ $ $ $ $ $
Segment profit (loss) 6.0 27.6 48.0 16.2 (7.2 ) (2.1 ) 88.5
Depreciation and amortization (2.8 ) (5.2 ) (11.6 ) (4.6 ) (0.3 ) — (24.5 )
Last in, first out and lower of cost or market inventory adjustments — — (3.6 ) (2.4 ) — (3.0 ) (9.0 )
(Gain) loss on disposal of assets 0.7 — (0.7 ) (0.4 ) — — (0.4 )
Non-cash pension, accretion and stock compensation (0.2 ) (0.2 ) (0.7 ) (0.6 ) (1.6 ) — (3.3 )
Restructuring, relocation and severance — (0.1 ) — (0.1 ) — — (0.2 )
Consulting and sponsor fees — — — — (0.1 ) — (0.1 )
Cash settlements on hedging transactions — — (0.2 ) (1.4 ) — — (1.6 )
Other, net 0.1 — (0.3 ) 0.1 (0.2 ) 3.5 3.2
Operating income (loss) 3.8 22.1 30.9 6.8 (9.4 ) (1.6 ) 52.6
Interest expense, net 5.5
Gain on hedging activities, net (24.3 )
Total other income (18.8 )
Income before income taxes 71.4

 

 
Six months ended June 30, 2010
Bauxite Alumina refining Primary aluminum products Flat rolled products Corporate Eliminations Consolidated
$ $ $ $ $ $ $
Sales:
External customers 25.1 109.7 235.0 266.6 — — 636.4
Intersegment 30.1 77.8 60.1 — — (168.0 ) —
Total sales 55.2 187.5 295.1 266.6 — (168.0 ) 636.4
Segment profit (loss) 12.3 25.8 57.6 25.8 (13.7 ) (2.4 ) 105.4
Depreciation and amortization 5.6 10.4 24.4 10.4 0.4 — 51.2
Capital expenditures 2.9 4.2 15.3 4.5 0.9 — 27.8
Six months ended June 30, 2010
Bauxite Alumina refining Primary aluminum products Flat rolled products Corporate Eliminations Consolidated
$ $ $ $ $ $ $
Segment profit (loss) 12.3 25.8 57.6 25.8 (13.7 ) (2.4 ) 105.4
Depreciation and amortization (5.6 ) (10.4 ) (24.4 ) (10.4 ) (0.4 ) — (51.2 )
Last in, first out and lower of cost or market inventory adjustments — — (6.6 ) (4.0 ) — (0.1 ) (10.7 )
Loss on disposal of assets — — (1.5 ) (0.4 ) — — (1.9 )
Non-cash pension, accretion and stock compensation (0.4 ) (0.8 ) (1.8 ) (1.2 ) (5.2 ) — (9.4 )
Restructuring, relocation and severance (3.1 ) (1.6 ) (1.9 ) (1.4 ) (0.3 ) — (8.3 )
Consulting and sponsor fees — — — — (18.7 ) — (18.7 )
Cash settlements on hedging transactions — — 0.1 (0.3 ) — — (0.2 )
Other, net — 2.1 — (0.2 ) (0.2 ) 1.7 3.4
Operating income (loss) 3.2 15.1 21.5 7.9 (38.5 ) (0.8 ) 8.4
Interest expense, net 17.8
Gain on hedging activities, net (22.3 )
Loss on debt repurchase 2.6
Total other income (1.9 )
Income before income taxes 10.3

 

 
Six months ended June 30, 2011
Bauxite Alumina refining Primary aluminum products Flat rolled products Corporate Eliminations Consolidated
$ $ $ $ $ $ $
Sales:
External customers 34.6 121.6 339.6 325.1 — — 820.9
Intersegment 39.9 91.5 33.8 — — (165.2 ) —
Total sales 74.5 213.1 373.4 325.1 — (165.2 ) 820.9
Segment profit (loss) 12.4 50.5 95.8 29.7 (13.8 ) (4.0 ) 170.6
Depreciation and amortization 4.4 10.4 23.3 9.4 0.6 — 48.1
Capital expenditures 5.4 5.3 12.2 5.7 0.7 — 29.3
Six months ended June 30, 2011
Bauxite Alumina refining Primary aluminum products Flat rolled products Corporate Eliminations Consolidated
$ $ $ $ $ $ $
Segment profit (loss) 12.4 50.5 95.8 29.7 (13.8 ) (4.0 ) 170.6
Depreciation and amortization (4.4 ) (10.4 ) (23.3 ) (9.4 ) (0.6 ) — (48.1 )
Last in, first out and lower of cost or market inventory adjustments — — (8.4 ) (8.3 ) — (2.5 ) (19.2 )
(Gain) loss on disposal of assets 0.7 — (1.2 ) (1.0 ) — — (1.5 )
Non-cash pension, accretion and stock compensation (0.3 ) (0.3 ) (1.4 ) (1.2 ) (3.8 ) — (7.0 )
Restructuring, relocation and severance — (0.2 ) (0.2 ) (0.1 ) (0.1 ) — (0.6 )
Consulting and sponsor fees — — — — (0.4 ) — (0.4 )
Cash settlements on hedging transactions — — (0.4 ) (2.4 ) — — (2.8 )
Other, net — (0.2 ) (0.2 ) — (0.2 ) 3.6 3.0
Operating income (loss) 8.4 39.4 60.7 7.3 (18.9 ) (2.9 ) 94.0
Interest expense, net 11.2
Gain on hedging activities, net (46.1 )
Total other income (34.9 )
Income before income taxes 128.9

 

 

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