Aleris Q4 and Full-year 2015 results reflect demand growth for aerospace & automotive products

Aleris Corporation today reported results for the three months and year ended December 31, 2015. Except as otherwise indicated, all amounts reflect the divested recycling and extrusions businesses as discontinued operations.

Fourth Quarter Summary

• Adjusted EBITDA of $39 million, in line with the fourth quarter of 2014
• Global automotive volumes up 33 percent compared to prior year
• Global aerospace volumes up 15 percent compared to prior year
• Solid productivity savings in North America and Europe
• Challenging metal spread environment caused by continued depressed aluminum price
• Lower year-over-year North America building and construction volumes
• Stronger U.S. dollar positively impacted Europe profitability
• Positive Adjusted EBITDA generated by Asia Pacific

Full Year Summary

• Adjusted EBITDA of $223 million, up 26 percent compared to 2014
• Completed divestitures of recycling and extrusions businesses for $583 million of net proceeds
• Global automotive volumes up 25 percent compared to the prior year
• Global aerospace volumes up 12 percent compared to the prior year
• Stronger U.S. dollar positively impacted Europe profitability
• Liquidity of $435 million as of December 31, 2015; paid down $125 million of Senior Notes

First Quarter 2016 Outlook

Aleris' year-over-year performance is expected to be moderately lower than prior year, but moderately higher after excluding $10 million related to both first quarter of 2015 currency exchange gains and the impacts of tighter metal spreads in 2016. The company's global automotive and aerospace volumes are expected to exceed prior year. Order patterns are forecasted to be trending favorably in North America and Europe, and Aleris Operating System is expected to drive favorable productivity.

Aleris President and CEO Sean Stack said, "A better than projected fourth quarter caps off a strong 2015, during which we completed the transformation of Aleris into a global rolled products company, a strategy that has been validated by demand growth for both our aerospace and automotive products which has led to enhanced profitability and improved overall performance."

"With the successful implementation of our growth projects in Europe and Asia Pacific, and the progress we've made on our automotive expansion project in the U.S., we are well-positioned to continue to meet the projected increase in demand from these high-value industries as well as the building and construction industry in North America," Sean Stack added.

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