Noranda Aluminum Holding Corporation announced results for Q2 and first 6 months of 2011.
Noranda reported Q2 2011 net income of USD 47.4 million compared to Q2 2010 net income of USD 6.9 million. Excluding special items, Noranda reported Q2 2011 net income of USD 31.2 million. Excluding special items Q2 2010 net income was USD 10.9 million.
Noranda reported first 6 months of 2011 net income of USD 85.7 million compared to first 6 months of 2010 net income of USD 6.8 million. Excluding special items Noranda reported first 6 months of 2011 net income of USD 55.0 million. Excluding special items, first 6 months of 2010 net income was USD 12.9 million.
Sales for Q2 2011 were USD 426.3 million compared to USD 394.6 million in Q1 2011 and USD 334.9 million in Q2 2010.
1. Compared to Q1 2011, Q2 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.
2. Compared to Q2 2010, Q2 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 Q2 segment profit was USD 88.5 million compared to USD 82.1 million in Q1 2011 and USD 62.5 million in Q2 2010.
1. Compared to Q1 2011, Q2 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.
2. Compared to Q2 2010, Q2 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.
Mr Layle K Smith president and CEO of Noranda said that "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. 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."
