• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Noranda Aluminum Holding Corporation Reports Its Fourth Quarter and Fiscal Year 2007 Financial Results

Posted on: Thursday, 10 April 2008, 09:00 CDT

Noranda Aluminum Holding Corporation ("Noranda" or the "Company") announced its financial results for the fourth quarter and fiscal year ended December 31, 2007.

Highlights for the fourth quarter and full year include the following:

Revenues of $1.4B, net income of $22.4M and Adjusted EBITDA of $309.4M for the year

Revenues of $299.0M, net income of $2.5M and Adjusted EBITDA of $62.6M for the fourth quarter

Achieved annual record production of 562M lbs at the New Madrid smelter versus 559M lbs for the 2006 year

Achieved quarterly record production of 142.5M lbs at the smelter versus 141.3M lbs in the 2006 fourth quarter

Generated $203.0M in Cash from Operating Activities for the year

Increased Aluminum hedges to 50% of forecasted production through 2012, including hedges entered into since year-end

Reached third consecutive five-year labor agreement with union employees at New Madrid in August 2007

Appointed Layle K. "Kip" Smith as President and CEO of the Company effective March 3, 2008

Fourth Quarter Results

Fourth quarter sales were $299.2 million, a 7.9% decrease from the $324.8 million reported for the same quarter in 2006. Operating income for the quarter was $17.4 million compared with $50.7 million reported for the fourth quarter in 2006. The decrease was primarily due to an 8% decline in the average Midwest price for primary aluminum to $1.15 and a 9% decrease in shipment volumes in the downstream business

Adjusted EBITDA decreased to $62.6 million for the fourth quarter relative to $81.1 million reported for the same period last year, as a result of the pricing and volume effects described above ,which were partly offset by lower power costs.

Kip Smith, the Company's President and CEO, stated, "Overall, we are pleased with our business performance. The record production levels attained at our New Madrid smelter for the three and twelve months ended December 31, 2007, are especially satisfying. The Gramercy alumina refinery operated at planned levels, excepting the 2007 first quarter, which was impacted by operating and electrical problems. The St. Ann bauxite mine shipments in 2007 were approximately at 2006 levels. Although LME aluminum prices declined during the fourth quarter, our aluminum hedges and lower seasonal power costs cushioned the impact of this decline on our cash flow."

"Downstream shipment volumes in the fourth quarter of 2007 were down 21.0% compared to the previous quarter reflecting normal seasonality. Downstream shipment volumes were down 8.5% from the fourth quarter in 2006 because of softness in the housing market which impacted our HVAC product line. We continue to examine every opportunity to maximize volumes and minimize unit costs at all of our mills."

Effective March 3, 2008, Mr. Layle K. "Kip" Smith, age 53, was named President and CEO of the Company, as well as being appointed a board member. Mr. Smith started his career in speciality and industrial products companies in 1977. Nearly twenty years of his experience was with The Dow Chemical Company in various international, financial and general management positions. Mr. Smith left Dow to pursue opportunities in the power industry and thereafter joined Resolution Performance Products, an Apollo portfolio company that is now part of Hexion Specialty Chemicals. The Company also announced the retirement of Mr. William Brooks as President and Chief Executive Officer of the Company. Mr. Brooks was appointed Chairman of the Board of Directors.

Full Year Results

Sales increased 6.3% to $1,395.1 million for the year ended December 31, 2007, relative to sales of $1,312.7 million reported for the year ended December 31, 2006. The increase was primarily due to a 5.4% increase in shipment volumes in the upstream business and a 3.1% increase in the average Midwest prices for primary aluminum, offset by a 9.2% decrease in annual shipment volumes in the downstream business.

Operating income of $147.0 million was recorded for 2007, a 25.5% decrease from the $205.9 million reported for 2006. The 2007 operating income was impacted by higher depreciation expense, resulting from the allocation of costs associated with the acquisition of Noranda Aluminum Inc. by the affiliates of Apollo Management, L.P. in May 2007.

Adjusted EBITDA increased to $309.3 million, or 4.4%, for the year ended December 31, 2007, from the $296.3 million recorded for the year ended December 31, 2006. The 2007 increase reflected increased sales prices and volumes in the upstream business, which more than offset lower downstream volumes and higher raw materials costs.

During the quarter and subsequent to year end, the Company entered into additional forward aluminum sales contracts. Including the most recent hedges, the Company has hedged approximately 50% of forecasted production through 2012 at prices which are attractive compared with the company's expected cost of producing primary aluminum.

The Company's $250.0 million revolving credit facility remained undrawn at December 31, 2007, with cash-on-hand of $75.6 million. Total debt at year-end was $1,151.7 million. The Company's net debt to EBITDA ratio at year end was 1.13x, 2.77x and 3.48x at the Senior Secured Level, Senior Debt and the Holdco level, respectively.

Kip Smith added, "We are proud of our 2007 results. We achieved strong financial results for the year, record performance at the smelter for the year 2007 and delivered solid results from the Joint Ventures for the last three quarters of 2007. We believe that we are well positioned to build on this foundation of success. We have a five year labor contract in place at our New Madrid smelter, a secure supply of power and of alumina, and we have increased the level of our aluminum hedges. When considered with continuing strong global demand for aluminum and strengthening LME metal prices since year end, we believe Noranda Aluminum is well positioned to generate strong earnings and cash flow."

Noranda Aluminum Holding Corporation

Condensed Consolidated Balance Sheets

(in thousands)

Successor

Predecessor

December 31,2007

December 31,2006

$

$

As restated

ASSETS

Current assets:

Cash and cash equivalents

75,630

40,549

Accounts receivable

97,169

128,975

Inventories

180,250

177,393

Other current assets

34,336

28,770

Total current assets

387,385

375,687

Advances due from parent

--

10,711

Investments in affiliates

198,874

179,543

Property, plant and equipment, net

657,811

672,837

Goodwill

256,122

284,338

Other intangible assets, net

70,136

52,002

Other assets

80,216

41,625

Total assets

1,650,544

1,616,743

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY)

Current liabilities:

Accounts payable

Trade

32,505

66,509

Affiliates

27,571

54,339

Accrued liabilities

63,182

39,733

Deferred tax liability

22,355

13,456

Current portion of long-term debt due to third party

30,300

--

Total current liabilities

175,913

174,037

Long-term debt due to third party

1,121,372

--

Long-term debt due to related party

--

160,000

Pension and other long-term liabilities

141,914

63,356

Deferred tax liabilities

211,421

210,849

Total liabilities

1,650,620

608,242

Shareholders' Equity (Deficiency):

Share capital

216

1

Capital in excess of par value

11,767

953,653

Retained earnings

--

59,425

Accumulated other comprehensive loss

(12,059

)

(4,578

)

Total shareholders' equity (deficiency)

(76

)

1,008,501

Total liabilities and shareholders' equity (deficiency)

1,650,544

1,616,743

Noranda Aluminum Holding Corporation

Condensed Consolidated Statements of Operations

(in thousands)

Successor

Predecessor

Fourth QuarterEndedDecember 31,2007

Fourth QuarterEndedDecember 31,2006

$

$

As restated

Sales

299,166

324,802

Operating costs and expenses:

Cost of sales

266,620

271,804

Selling, general and administrative expenses

15,429

2,881

Other (recoveries) expenses, net

(311

)

(579

)

281,738

274,106

Operating income

17,428

50,696

Other expense (income)

Interest expense (income), net:

Parent and a related party

--

4,961

Third-party

25,513

(472

)

Loss on derivative instruments and hedging activities

(5,795

)

559

Equity in net income of investments in

affiliates

(4,672

)

(1,579

)

Other, net

--

62

15,046

3,531

Income before income taxes

2,382

47,165

Income tax (benefit) expense

(103

)

15,277

Net income

2,485

31,888

Noranda Aluminum Holding Corporation

Condensed Consolidated Statements of Operations

(in thousands)

Successor

Predecessor

Pre-predecessor

Period fromMay 18,2007 toDecember 31,2007

Period fromJanuary 1,2007 toMay 17,2007

Period fromAugust 16,2006 toDecember 31,2006

Period fromJanuary 1,2006 toAugust 15,2006

$

$

As restated

$

As restated

$

Sales

867,390

527,666

496,681

816,042

Operating costs and expenses:

Cost of sales

783,098

432,607

417,329

674,365

Selling, general and administrativeexpenses

24,071

8,751

5,668

10,097

Other (recoveries) expense, net

(454

)

(37

)

(557

)

(56

)

806,715

441,321

422,440

684,406

Operating income

60,675

86,345

74,241

131,636

Other expense (income)

Interest expense (income), net:

Parent and a related party

--

7,187

7,059

12,576

Third-party

67,243

(952

)

(732

)

96

(Gain) loss on derivative instruments and hedging activities

(12,497

)

56,467

5,452

16,632

Equity in net income of investments in

affiliates

(7,375

)

(4,269

)

(3,189

)

(8,337

)

Other, net

--

--

42

45

47,371

58,433

8,632

21,012

Income before income taxes

13,304

27,912

65,609

110,624

Income tax expense

5,137

13,655

23,577

38,744

Net income

8,167

14,257

42,032

71,880

Noranda Aluminum Holding Corporation

Condensed Consolidated Statements of Cash Flows

(in thousands)

Successor

Predecessor

Pre-predecessor

Period fromMay 18,2007 toDecember 31,2007

Period fromJanuary 1,2007 toMay 17,2007

Period fromAugust 16,2006 toDecember 31,2006

Period from

January 1,2006 toAugust 15,2006

$

$

$

$

Cash provided by operating activities

160,791

41,169

107,811

81,875

INVESTING ACTIVITIES

Capital expenditures

(36,172)

(5,768)

(21,034)

(20,538)

Net increase in advances due from parent

--

10,925

(10,711)

--

Proceeds from disposal of equipment

--

--

--

25

Payments for the Apollo Acquisition

(1,161,519)

--

--

--

Investments in affiliates

--

--

--

--

Cash (used in) provided by investing activities

(1,197,691)

5,157

(31,745)

(20,513)

FINANCING ACTIVITIES

Proceeds from issuance of shares

216,130

--

--

--

Distribution to shareholders

(216,130)

--

--

--

Capital contributions from parent

--

101,256

--

--

Distributions to parent

--

(25,000)

--

--

Excess tax benefits from stock-based compensation

--

--

3,654

--

Payments for exercise of stock options

--

--

--

(7,428)

Net (decrease) increase in advances payable to parent

--

--

(24,202)

21,723

Deferred financing costs

(39,020)

--

--

--

Borrowings on long-term debt

1,227,800

--

--

73,000

Repayments on long-term debt

(76,250)

(160,000)

(40,000)

(125,000)

Cash provided by (used in) financing activities

1,112,530

(83,744)

(60,548)

(37,705)

Change in cash and cash equivalents

75,630

(37,418)

15,518

23,657

Cash and cash equivalents, beginning of period

--

40,549

25,031

1,374

Cash and cash equivalents, end of period

75,630

3,131

40,549

25,031

Noranda Aluminum Holding Corporation

Unaudited Supplemental Segment Information

(in thousands)

Successor

Predecessor

Three MonthsEndedDecember 31,2007

Three MonthsEndedDecember 31,2006

$

$

Upstream:

Sales

152,193

172,073

Operating income

14,289

46,307

Shipments (pounds)

122,260

122,451

Capital expenditures

14,987

12,211

Downstream:

Sales

146,973

152,729

Operating income

3,139

4,389

Shipments (pounds)

82,647

90,311

Capital expenditures

2,832

4,098

Successor

Predecessor

CombinedPredecessorand Successor

Predecessor

Pre-predecessor

CombinedPre-predecessorandPredecessor

Period fromMay 18,2007 toDecember 31,2007

Period fromJanuary 1,

2007 toMay 17,2007

Year EndedDecember 31,2007

Period fromAugust 16,2006 toDecember 31,

2006

Period fromJanuary 1,

2006 toAugust 15,2006

Year EndedDecember 31,2006

$

$

As restated

$

$

As restated

$

$

As restated

Upstream:

Sales

423,742

275,157

698,899

243,563

400,316

643,879

Operating income

55,826

78,194

134,020

65,697

121,461

187,158

Shipments

(in millions of pounds)

321.1

202.3

523.4

187.7

308.8

496.5

Capital expenditures

31,608

3,385

34,993

15,937

13,745

29,682

Downstream:

Sales

443,648

252,509

696,157

253,118

415,726

668,844

Operating income

4,849

8,151

13,000

8,544

10,175

18,719

Shipments

(in millions of pounds)

236.0

135.6

371.6

150.2

259.1

409.3

Capital expenditures

4,564

2,383

6,947

5,097

6,793

11,890

Restatement

During the process of preparing the 2007 annual financial statements, we concluded that certain errors identified subsequent to filing prior period financial statements were material to these prior periods. We have amended and restated our consolidated balance sheet at December 31, 2006 and our consolidated statements of income and cash flows for the periods from January 1, 2007 to May 17, 2007 and August 16, 2006 to December 31, 2006. The restatement corrects previously reported revenue related to bill and hold transactions, certain metal sales which were previously reported on a net basis and previously identified errors which were not initially corrected in the respective periods based on materiality. The restatement had no effect on cash flows from operating activities.

We have concluded previously reported revenue on bill and hold transactions should not have been recorded because we had not met all the revenue recognition criteria necessary to record revenue on such transactions. Consequently, the restatement corrects revenue improperly recorded on these bill and hold transactions. The impact of this restatement for the period January 1, 2007 to May 17, 2007 was to increase revenue and net income by $9,630 and $934, respectively. The impact of this restatement for the period August 16, 2006 to December 31, 2006 was to decrease revenue and net income by $11,262 and $2,002, respectively.

During 2007, we were required to purchase fixed quantities of metal under the terms of our forward contracts. We determined that certain quantities purchased under these contracts were not required to meet production and transferred title to a third party buyer. These transactions previously were reported on a net basis. We have concluded that EITF 99-19 "Reporting revenue gross as a principal vs. net as an agent" requires such transactions to be recorded on a gross basis. As such, we have increased revenue and cost of sales for the period January 1, 2007 to May 17, 2007 by $8,165 to reflect these transactions on a gross basis.

We also are restating our consolidated statements of income and cash flows for the periods from January 1, 2007 to May 17, 2007 and August 16, 2006 to December 31, 2006 for the impact of certain previously unadjusted differences. The impact of these items on net income was $413 and 2,964 for the periods January 1, 2007 to May 17, 2007 and August 16, 2006 to December 31, 2006, respectively. As previously noted, these unadjusted differences were not initially recorded because they were not deemed material.

EBITDA

EBITDA represents net income before income taxes, net interest expense and depreciation and amortization. We have provided EBITDA figures herein because we believe they provide investors with additional information to measure our performance. We use EBITDA as one criterion for evaluating our performance relative to our peers. We believe that EBITDA is an operating performance measure, and not a liquidity measure, that provides investors and analysts with a measure of operating results unaffected by differences in capital structures, capital investment cycles and ages of related assets among otherwise comparable companies.

Adjusted EBITDA

Certain covenants contained in the agreements governing the senior secured credit facilities and the notes restrict our ability to take certain actions. For example, under the Indentures the minimum pro forma Adjusted EBITDA to Fixed Charge ratio required to incur additional debt is, subject to certain exceptions specified therein, 1.75 to 1.0 for Noranda HoldCo and 2.0 to 1.0 for Noranda AcquisitionCo. We were in compliance with our debt covenants at December 31, 2007. These covenants also require us to calculate Adjusted EBITDA. We have provided Adjusted EBITDA figures herein because we believe they provide investors with additional information to evaluate our ability to meet debt covenants and incur additional debt. Adjusted EBITDA, as presented in accordance with our debt agreements, is EBITDA adjusted to eliminate management fees to related parties, one-time, non-recurring charges related to the use of purchase accounting, and other non-cash income or expenses, which are more particularly defined in our credit documents and the indentures governing the notes. Our credit documents and the indentures governing the notes require us to meet or exceed specified minimum financial performance thresholds in order to consummate certain acts, such as completing acquisitions, declaring or paying dividends and incurring additional indebtedness, and one of the more significant measures contained in our credit documents and the indentures governing the notes is Adjusted EBITDA.

EBITDA and Adjusted EBITDA are not measures of financial performance under GAAP and may not be comparable to similarly titled measures used by other companies in our industry. EBITDA and Adjusted EBITDA should not be considered in isolation from or as alternatives to net income, income from continuing operations, operating income or any other performance measures derived in accordance with GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. You should not consider our EBITDA or adjusted EBITDA as an alternative to operating or net income, determined in accordance with GAAP, as an indicator of our operating performance, or as an alternative to cash flows from operating activities, determined in accordance with GAAP, as an indicator of our cash flows or as a measure of liquidity.

The following tables reconcile net income to EBITDA and Adjusted EBITDA for the periods presented, as defined in the credit agreements:

Successor

Predecessor

(in thousands)

Three MonthsendedDecember 31,2007

Three MonthsendedDecember 31,2006

$

$

Net income

2,485

31,888

Income taxes

(103

)

15,277

Interest expense, net

25,513

4,489

Depreciation and amortization

27,515

22,895

EBITDA

55,410

74,549

Joint venture EBITDA(a)

3,435

2,506

LIFO expense(b)

(14,126

)

2,771

LCM adjustment(c)

5,533

-

Non-cash derivative gains and losses(d)

2,116

1,913

Non-recurring natural gas losses(e)

-

(1,354

)

Incremental stand-alone costs(f)

-

(680

)

Employee compensation items(g)

3,816

-

Non-recurring fees(h)

4,954

2,600

Other items, net(i)

1,474

(1,196

)

Adjusted EBITDA

62,612

81,109

Successor

Predecessor

CombinedPredecessorandSuccessor

Predecessor

Pre-predecessor

CombinedPre-predecessorandPredecessor

(in thousands)

Period fromMay 18,2007 toDecember 31,2007

Period fromJanuary 1,2007 to

May 17,

2007

Year endedDecember 31,2007

Period fromAugust 16,2006 to

December 31,2006

Period fromJanuary 1,2006 to

August 15,2006

Year endedDecember 31,2006

$

$

As restated

$

$

$

As restated

$

Net income

8,167

14,257

22,424

42,032

71,880

113,912

Income taxes

5,137

13,655

18,792

23,577

38,744

62,321

Interest expense, net

67,243

6,235

73,478

6,327

12,672

18,999

Depreciation and amortization

69,709

29,637

99,346

32,914

24,259

57,173

EBITDA

150,256

63,784

214,040

104,850

147,555

252,405

Joint venture EBITDA (a)

15,334

13,079

LIFO expense (b)

(5,556

)

5,663

LCM adjustment (c)

14,323

-

Non-cash derivative gains and osses (d)

53,962

7,453

Non-recurring natural gas losses (gains)(e)

14,631

Incremental stand-alone costs (f)

(2,700

)

(4,500

)

Employee compensation items (g)

10,361

2,561

Non-recurring fees (h)

6,040

800

Other items, net (i)

3,551

4,090

Adjusted EBITDA

309,355

296,182

(a) Our upstream business is fully integrated from bauxite mined by the St. Ann Bauxite Limited joint venture to alumina produced by the Gramercy Alumina LLC joint venture to primary aluminum metal manufactured by our aluminum smelter in New Madrid, Missouri. Our reported EBITDA includes 50% of the net income of the Gramercy Alumina LLC and St. Ann Bauxite Limited joint ventures, based on transfer prices that are generally in excess of the actual costs incurred by the joint venture operations. To reflect the underlying economics of the vertically integrated upstream business, this adjustment eliminates the following components of equity income to reflect 50% of the EBITDA of the joint ventures, for the following combined periods:

Successor

Predecessor

CombinedPredecessorandSuccessor

CombinedPre-predecessorandPredecessor

(in thousands)

Three MonthsendedDecember 31,2007

Three MonthsendedDecember 31,2006

Year endedDecember 31,2007

Year endedDecember 31,2006

$

$

As restated

$

$

As restated

Depreciation and amortization expenses

2,709

1,562

11,875

8,546

Net tax expense

807

11

3,183

3,600

Interest income

(81

)

(300

)

(331

)

(300

)

Non-cash purchase accounting

Adjustments

0

1,233

607

1,233

Total joint venture EBITDA

Adjustments

3,435

2,506

15,334

13,079

(b) We use the LIFO method of inventory accounting for financial reporting and tax purposes. To achieve better matching of revenues and expenses, particularly in the downstream business where customer LME pricing terms generally correspond to the timing of primary aluminum purchases, this adjustment restates EBITDA to the FIFO method of inventory accounting by eliminating the LIFO expenses related to inventory held at the smelter and downstream facilities. The adjustment also includes non-cash charges relating to inventories that have been revalued at fair value at the date of the Xstrata Acquisition and Apollo Acquisition and recorded in cost of sales during the periods presented resulting from the sales of inventories.

(c) Reflects adjustments to reduce inventory to the lower of cost, adjusted for purchase accounting, to market value.

(d) We use derivative financial instruments to mitigate effects of fluctuations in aluminum prices. We do not enter into derivative financial instruments for trading purposes. This adjustment eliminates the non-cash gains and losses resulting from fair market value changes of aluminum swaps.

(e) During 2006, as mandated by Falconbridge, we entered into natural gas swaps for the period between April and December 2006 in response to rising natural gas costs at the end of 2005. Natural gas prices, however, decreased in 2006, and as a result, we generated losses on the natural gas swaps. This adjustment eliminates the non-recurring losses incurred from the natural gas swaps.

(f) Reflects (i) the incremental insurance, audit and other administrative costs on a stand-alone basis, net of certain corporate overheads allocated by the former parent that we no longer expect to incur on a go-forward basis and (ii) the elimination of income from administrative and treasury services provided to Noranda Aluminum, Inc.'s former parent and its affiliates that are no longer provided.

(g) Represents stock compensation expense, re-pricing of stock options and bonus payment related to the Xstrata acquisition.

(h) Consists of acquisition, consulting, and registration fees.

(i) Represents the elimination of non-cash and non-recurring items such as stock option expenses, gains and losses from disposal of assets, non-recurring insurance recoveries, non-cash pension expenses, losses relating to GCA Leasing Holding, Inc., an entity retained by Xstrata in connection with the Transactions, payment of non-recurring bonus by the former parent company and the annual management fees to Apollo.

Forward-Looking Statements

This press release includes forward-looking statements which involve risks and uncertainties. All statements other than statements of historical fact included in this press release, including, without limitation, statements regarding the Company's estimated and projected earnings, margins, costs, expenditures, cash flows, growth rates and financial results or the Company's expectations regarding future industry trends are forward-looking statements. Forward-looking statements can be identified because they contain words such as "believes,""expects,""may,""should,""seeks,""approximately,""intends,""plans,""estimates," or "anticipates" or similar expressions that relate to management's strategy, plans or intentions. In addition, the Company, through its senior management, from time to time makes forward-looking public statements concerning expected future operations and performance and other developments. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, the Company's actual results may differ materially from those that were expected. Management derives many of its forward-looking statements from the Company's operating budgets and forecasts, which are based upon many detailed assumptions. While management believes that the assumptions are reasonable, management cautions that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect the Company's actual results. All forward-looking statements are based upon information available to management on the date of this press release.

Some of the factors management believes could affect the Company's results include: the Company's substantial indebtedness, and the possibility that the Company may incur more indebtedness; restrictive covenants in the Company's indebtedness that may adversely affect its operations; as a holding company, repayment of our debt is dependent on cash flow generated by the Company's subsidiaries; the cyclical nature of the aluminum industry and fluctuating commodity prices, which cause variability in earnings and cash flows; a downturn in general economic conditions, including changes in interest rates, as well as a downturn in the end-use markets for certain of products; losses caused by disruptions in the supply of power; changes in the relative cost of certain raw materials and energy compared to the price of primary aluminum and aluminum rolled products; the effectiveness of management's hedging strategies in reducing the variability of the Company's cash flows; unexpected issues arising in connection with the Company's joint ventures; the effects of competition in the Company's business lines; the relative appeal of aluminum compared with alternative materials; the Company's ability to retain customers, a substantial number of which do not have long-term contractual arrangements with us; the Company's ability to fulfill its business's substantial capital investment needs; the cost of compliance with and liabilities under environmental, safety, production and product regulations; natural disasters; labor relations (i.e., disruptions, strikes or work stoppages) and labor costs; unexpected issues arising in connection with our operations outside of the United States; the Company's ability to retain key management personnel; management's expectations with respect to acquisition activity, or difficulties encountered in connection with acquisitions, dispositions or similar transactions; the ability of the Company's insurance to cover fully potential exposures; the Company's lack of history as an independent company or financial statements that reflect operation as an independent company; unexpected costs incurred in separating the Company's business from Xstrata; limitations on operating the Company's business as a result of covenant restrictions under its indebtedness; and the ability of the Company's customers to satisfy their financial commitments.

Management cautions that the foregoing list of important factors may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this press release may not in fact occur. Accordingly, investors should not place undue reliance on those statements. Management undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

This press release includes certain non-GAAP financial measures as defined under SEC rules. As required by SEC rules, important information regarding such measures is contained throughout this press release.

Conference Call

Noranda has scheduled a conference call for Thursday, April 10, 2008 at 2:00 PM EDT. The conference call is accessible to the media and general public. To listen to the conference call, dial the appropriate number at least 10 minutes prior to the scheduled start of the call. U.S. participants should dial 1-888-459-5609, and international participants should call 1-973-321-1024. When prompted, use PIN number 36370476.

A rebroadcast of the call will be available starting approximately two hours after the conference call ends through midnight (EDT), Thursday, April 24, 2008. The replay of the call can be accessed by dialing 1-800-642-1687 from within the U.S. or 1-706-645-9291 for international callers. When prompted, enter PIN number 36370476.

About the Company

Noranda Aluminum Holding Corporation is a leading North American integrated producer of value-added primary aluminum products, as well as high quality rolled aluminum coils. The Company has two businesses, an upstream and downstream business. The primary metals, or upstream business, produces approximately 258,000 metric tons of primary aluminum annually. The rolling mills, or downstream business, is one of the largest foil producers in North America and a major producer of light gauge sheet products. Noranda Aluminum Holding Corporation is a private company owned by affiliates of Apollo Management, L.P. The information contained in this release is limited and management encourages interested parties to read the Company's financial reports and other information available on the Company's website at www.norandaaluminum.com.

Source: Business Wire

More News in this Category