Aleris reported a net loss of US$33 million in Q1 2019 compared to net income of US$5 million in Q1 2018

Aleris Corporation reported results for Q1 2019 ended March 31 on May 8. The company reported a net loss of US$33 million compared to net income of $5 million in Q1 2018. The company reported a record first quarter adjusted EBITDA of US$85 million compared to US$54 million in 2018. Adjusted EBITDA was positively impacted by improved rolling margins and favourable metal spreads.

Commenting on the results, Sean Stack, Aleris Chairman and CEO said, "We are off to a strong start this year with record first quarter Adjusted EBITDA, significant growth in aerospace and continued growth in commercial shipments from our new automotive assets in North America."

“With our multi-year aerospace agreements in place and committed automotive volumes in North America, we expect to continue this momentum in the second quarter," he added.

Increased global automotive and global aerospace shipments also lifted the EBITDA in Q1 2019. Stronger dollar and decreased start-up costs also benefitted the EBITDA. These benefits were more than offset by unrealized gains, increase in tax, interest expense and merger costs.

North America segment income increased to $57 million Q1 2019 from $41 million in Q1 2018. Segment Adjusted EBITDA increased to $50 million from $34 million in Q1 2018, mostly driven by improved rolling margins combined with favourable metal spreads and scrap availability. Increased automotive volume also benefitted the EDITDA.

Europe segment income increased to US$37 million in Q1 2019 from US$28 million in Q1 2018. Segment Adjusted EBITDA increased to $36 million in Q1 2019 from $27 million in Q2 2018, driven by favourable product mix and stronger dollar.

Asia Pacific segment income increased to US$8 million in Q1 2019 from $2 million in Q1 2018. Segment Adjusted EBITDA increased to $9 million from US$2 million in Q1 2018. 

The company expects the Q2 2019 segment income to be higher sequentially. Global aerospace volumes are expected to increase driven by the new multi-year contracts. They are also positive about favourable metal spread and rolling margins.

The company press release also confirmed that the acquisition by Novelis Inc., a subsidiary of Hindalco Industries Limited is expected to close within fifteen months from the date of the definitive agreement, subject to customary regulatory approvals and closing conditions.

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