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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.
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.
| 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.
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.
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 | ||||||||||||||||||||
