7:38AM Noranda Aluminum reduces quarterly dividend to $0.01 per share from $0.04 per share (NOR) 2.83 : "In the context of the current aluminum price environment, we have undertaken a strategic review of our capital allocation. The conclusion of this review is a decision to retain more of our cash to make accretive investments in our business and maintain a strong balance sheet in the face of below average LME levels. Accordingly, we have decided to reduce our quarterly dividend in support of these strategic objectives and remain committed to the prudent return of capital to shareholders."
Agreed. At current pps, the annual yield was at about 6%. Now it will be about 2%. The cash will now be employed even more so on capital equipment (already in full swing at the main plant) and value-added initiatives. Coupled with industry trends, NOR should be a $5 stock within the next 52 weeks. JMHO
I just don't understand why NOR would go through the trouble to distribute a $700K dividend. If it's to avoid the headline "Noranda Eliminates Dividend", then management's got way too much free time. Let's see what Kip has to say today.
Third Quarter 2013 Highlights
Operating activities provided $26.1 million of cash flow, compared to $16.8 million provided in second quarter 2013 and $4.5 million provided in third quarter 2012
Total segment profit was $11.0 million , compared to $25.0 million in second quarter 2013 and $10.1 million in third quarter 2012
Excluding special items, diluted EPS was a loss of $0.30 , compared to a loss of $0.16 in second quarter 2013 and a loss of $0.16 in third quarter 2012
Reported diluted EPS was a loss of $0.27 , compared to a loss of $0.18 in second quarter 2013 and income of $0.05 in third quarter 2012
Primary aluminum shipments were 149.0 million pounds, compared to 148.0 million pounds in second quarter 2013 and 138.8 million pounds in third quarter 2012
At September 30, 2013 , cash and cash equivalents totaled $63.9 million , and available borrowing capacity under the Company's asset-based revolving credit facility was $120.0 million
Franklin, Tennessee – October 30, 2013 – Noranda Aluminum Holding Corporation (NYSE: NOR) today reported results for third quarter 2013 .
"We are proud to report another quarter of solid financial results and reliable operational performance," said Layle K. “Kip” Smith, Noranda's President and Chief Executive Officer. "We continue to see stable overall demand for our key aluminum products and to realize the positive impact of our actions to drive profitability and free cash flow in today's environment. During the third quarter we generated over $6 million in net cash, despite seasonal peak power premiums and further declines in aluminum prices, and continue to believe in the industry's long-term fundamentals."
"Having surpassed our previous $140 million CORE productivity target during second quarter 2013, we are pleased to announce a new CORE productivity program that targets $225 million of savings from 2014 to 2016. The program includes both a portfolio of traditional small and medium sized projects as well as certain more transformational initiatives that will collectively enhance our profitability and cash flow and create significant shareholder value. We are excited about the opportunities this program creates for Noranda and remain committed through the cycle to making accretive investments in our integrated platform, maintaining a strong balance sheet and prudently returning capital to shareholders."
Third Quarter 2013 Results
Excluding special items, Noranda's third quarter 2013 results were a net loss of $20.3 million ( $0.30 loss per diluted share), compared to a net loss of $10.6 million ( $0.16 loss per diluted share) in second quarter 2013 and a net loss of $10.8 million ( $0.16 per diluted share) in third quarter 2012 . Reported third quarter 2013 results were a net loss of $18.2 million ( $0.27 loss per diluted share), compared to a second quarter 2013 net loss of $12.3 million ( $0.18 loss per diluted share) and third quarter 2012 net income of $3.8 million ( $0.05 per diluted share).
Sales for third quarter 2013 were $339.9 million , compared to $352.0 million in second quarter 2013 and $336.8 million in third quarter 2012 .
Sequentially (comparing third quarter 2013 to second quarter 2013 ), sales decrease d $12.1 million , $9.0 million of which was due to lower third quarter 2013 prices, primarily due to a decline in LME aluminum prices. The remaining portion of the sequential sales decline was attributable to a 2.2% decrease in Flat-Rolled Products segment volumes, as moderate summer temperatures created a shorter selling season for finstock products used in HVAC applications.
Year-over-year (comparing third quarter 2013 to third quarter 2012 ), sales increase d $3.1 million . This improvement was primarily driven by a $14.3 million impact from improved volumes in the Alumina, Primary Aluminum, and Flat-Rolled Products segments, which more than offset the effects of lower prices in those segments. Improved volumes in the Alumina, Primary Aluminum, and Flat-Rolled Products segments reflected the effectiveness of the Company's CORE productivity program at eliminating production variability issues experienced in the third quarter 2012 which negatively impacted volumes in those segments.
Total third quarter 2013 segment profit was $11.0 million , compared to $25.0 million in second quarter 2013 and $10.1 million in third quarter 2012 .