The tool calculates income gains after users input information related to cost of aluminum per pound, cans missed per minute, hours worked per day, days worked per week and weeks worked per year. It can be accessed by clicking here.
“Reclaiming aluminum cans typically involves the use of an eddy current magnetic separator, which repels the can as it passes through the magnetic field. In this way, the aluminum is ‘thrown’ and separated from the rest of the waste stream for recycling,” IMI explains in a press release.
The company continues, “As eddy current separators can vary in their magnetic field strength, overall design, and years in use, the tool aims to help users identify what the inefficiencies of their current equipment may be costing them. Taking into account factors such as number of cans missed in 60 seconds, the current price of aluminum and the number of hours the line runs, managers can better assess their current productivity and evaluate the payoff on the investment in new equipment.”]]>
SWANA will award up to $25,000 in scholarships to students in 2018. SWANA’s 45 chapters forward local candidates to the Grant H. Flint scholarship program and provide local scholarships their individual areas.
“Supporting the education of students with the intention of attracting them to the solid waste and resource management industries has long been a SWANA mission,” Darryl Walter, SWANA’s director of membership, says. “This is another high impact program that allows SWANA and its chapters to support students in their college and graduate efforts. We look forward to awarding scholarships to deserving applicants for 2018.”
Applications are accepted at three levels:
- Category I: High school seniors
- Category II: Undergraduate juniors or seniors pursuing a degree in a field related to solid waste management
- Robert P. Stearns/SCS Engineers: Full-time students entering or in graduate studies in a related area
To be eligible, high school students must be the children or grandchildren of current SWANA members. College and graduate students must be either be a SWANA member or be sponsored by a SWANA member.
SWANA offers free membership for students enrolled at the undergraduate or graduate level with the goal of developing the next generation of professionals, the association says.
Scholarship applications are available through SWANA chapters and must be received by individual chapter scholarship chairpersons by May 1, 2018, to be considered for funding.
Applications for use by at-large members are posted on the SWANA website.
For more information about the Grant H. Flint scholarship awards program or for chapter contacts, please email SWANA Deputy Executive Director Sara Bixby.]]>
The company turned its best practices into a universal tool for running a successful recycling and waste reduction program. The RubiconMethod uses an acronym, DIVERT (Determine Initiate Vocalize Eliminate Roll-out Track) and builds upon the classic mantra “reduce reuse recycle” by focusing on the “how” associated with implementing waste reduction and recycling best practices, says Rubicon.
The guide addresses commonly overlooked steps such as:
- consistent placement of side-by-side bin stations with picture-based signage such as Recycle Across America’s (RAA’s) standardized labels to reduce contamination and increase recycling;
- usage of different colored liners (i.e., bags) for landfill (black), recycling (clear) and organic (green) bins to ensure materials end up in the correct stream when collected by custodial staff; and
- eliminating waste from the start such as food, disposable tableware and individually packaged goods.
“The RubiconMethod reflects our mission as a certified B Corp. committed to solving the global issue of waste. In order to make the impact we desire, Rubicon chose to share its best practices with the world,” says David Rachelson, vice President of sustainability at Rubicon. “Most businesses want to start a recycling program, but have challenges navigating the complexities associated with keeping materials out of landfills and changing behaviors.”
Mitch Hedlund, RAA’s executive director, adds, “At Recycle Across America, our mission is to help recycling become economically viable and we’re doing this by implementing a nonprofit standardized label solution for bins, which makes it easy for people to begin to ‘recycle right,’ wherever they might be. The chronic confusion at the recycling bin has been crippling the economics of recycling. The RubiconMethod is providing organizations of all sizes with a simple list of best practices to create successful and thriving recycling programs. This guidance is desperately needed.”
To download the practical guide to implementing the RubiconMethod, visit www.rubiconglobal.com/sustainability-guide.
Rubicon Global says it works with businesses, organizations and local governments across the United States and in select international markets to find new efficiencies and cost savings in their waste streams and to develop new ways to reduce, reuse and recycle materials. As a Certified B Corp., Rubicon says its mission is to solve the global issue of waste and create a more circular economy.
General Kinematics says in a press release announcing the product line, “Have you experienced downtime? Even the smallest amount can be a financial drain. This year General Kinematics is ending the cycle of downtime with Barrier. The newest release from General Kinematics provides three levels of equipment tracking that can be customized to your process.”
The company says using data Barrier provides helps companies to better maintain their equipment and avoid downtime.
Apex is a device that can fit in the user’s pocket to travel with the maintenance team and can be placed on any vibratory equipment to track vibrations, strokes, frequencies and other traits, says General Kinematics. Apex connects with General Kinematics’ free smartphone app and opens into a smart device, allowing users to view their equipment’s data in real time.
The company says highlights of Apex include planning maintenance schedules based on real data; replacing parts prefailure, saving money; and easily sending data to General Kinematics’ field service team.
Vertex is capable of monitoring equipment 24/7, transmitting this data to the user’s personal Barrier Portal. The Vertex can send text alerts to the user’s phone to warn if anything is amiss. It detects potential overload conditions, lower performance rates and more.
General Kinematics says highlights of Vertex include being alerted the moment an issue arises as well as its 24/7 equipment monitoring.
Nomadx is an all-new segment of General Kinematics’ field service department that is dedicated to monitoring and analyzing equipment performance data, says the company.
“Our nomadic field service team will assist you with analyzing your data, monitoring your equipment and implementing maintenance to keep your equipment running smoothly around the clock,” General Kinematics says.
Highlights of Nomadx include having experienced professionals available to analyze data; helping to solve process or production throughput issues; and data management.]]>
The increase in net income, excluding special items, is mainly because of a 20 percent increase in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to a record $305 million in the third quarter of fiscal 2018 compared with the prior year. Novelis says this increase reflects higher shipments and its strategy to deliver a more favorable product mix with higher automotive shipments and increased operational efficiencies. Adjusted EBITDA reached $383 per ton in the quarter, according to Novelis.
Net sales increased 33 percent from the prior year to $3.1 billion for the third quarter of fiscal 2018, driven by higher average aluminum prices, higher total shipments and a favorable impact from the strategic portfolio shift to higher-conversion premium products, the company says. Shipments of flat-rolled products increased 6 percent to 796 kilotonnes. Automotive sheet shipments increased 12 percent year over year as production has ramped up to meet customer demand.
Steve Fisher, president and CEO of Novelis, says, “Following another quarter of record-setting financial results, we are making strategic investments to grow with our customers and advance the continued penetration of aluminum sheet in the broad automotive market of competing materials. These investments, coupled with the most advanced manufacturing processes and largest footprint in the industry, solidify our global leadership position and strengthen our diverse portfolio of lightweight, high-strength aluminum solutions."
The company recently announced plans to expand its production footprint in the U.S. by investing approximately $300 million in automotive finishing capacity in Guthrie, Kentucky. Novelis also has agreed to acquire operating facilities and manufacturing assets for €200 million ($247 million) at its Sierre, Switzerland, plant that have historically been leased.
Novelis reported free cash flow of $79 million for the third quarter of fiscal 2018, including $54 million of capital expenditures. Year-to-date free cash flow has improved $74 million over the prior year, Novelis says, primarily a result of higher adjusted EBITDA, lower cash interest payments because of refinancing savings and lower metal price lag, partially offset by higher taxes and working capital requirements because of rising aluminum prices.
"Record Adjusted EBITDA for the second consecutive quarter has put us on track to achieve record free cash flow this fiscal year and is providing the financial flexibility to reduce net debt and seek strategic investments, particularly in the growing automotive segment," says Devinder Ahuja, senior vice president and chief financial officer for Novelis.
As of Dec. 31, 2017, the company reported a liquidity position of $1,724 million.
During the third quarter of fiscal 2018, Novelis recorded a net $18 million noncash income tax benefit for the remeasurement of deferred tax assets and liabilities in accordance with the recently enacted U.S. tax reform. The tax benefit attributable to the common shareholder is $34 million, as $16 million of tax expense is attributable to noncontrolling interest related to Logan Aluminum as reflected in the net loss attributable to noncontrolling interests in our financial statements. Novelis says it does not expect other provisions of the act to have a material impact on fiscal 2018.
The company says it expects to be on the upper end of its previously guided fiscal 2018 adjusted EBITDA range of $1,150 million to $1,200 million. It also says it expects fiscal 2018 free cash flow to be on the lower end of its previously guided range of $400 million to $450 million, driven by the impact of higher aluminum prices. The recently announced automotive investments in the U.S. and Switzerland will not impact fiscal 2018 free cash flow.]]>
Marty Bryant, chief executive officer of Wastequip, says, “We want to thank Centerbridge Partners for their invaluable partnership over the last five years. Centerbridge’s support has been instrumental in strengthening Wastequip’s position as the largest and most trusted supplier in the waste equipment industry with leading brands, top quality products and world-class customer service.”
Kyle Cruz, senior managing director at Centerbridge, says, “Over the past five years, we partnered with Marty and his team to improve the performance and competitiveness of the company. We are proud of their success and believe that Wastequip is well-positioned for the future.”
Bryant adds, “As we transition into this next stage of our company’s life, we couldn’t be more excited to partner with a firm like H.I.G. The resources and industry knowledge that H.I.G. brings will allow us to accelerate our growth plan. With this partnership, we are confident we will grow our already industry-leading position and, most importantly, continue to satisfy the needs of our customers.”
“We are very excited to partner with Marty and the rest of the Wastequip team,” says Tenno Tsai, managing director at H.I.G. “The company’s diverse product portfolio, customer base and nationwide footprint uniquely position it to capitalize on growth opportunities. We look forward to supporting Wastequip’s next phase of growth by investing in new product development, geographic expansion and complementary acquisitions.”
Wastequip’s existing management team will continue to run the business, according to a news release issued by Wastequip.
The transaction is subject to customary closing conditions. Wastequip says it expects the purchase to be completed by the end of the first quarter of 2018.
Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are providing committed financing for the transaction. Barclays acted as lead financial advisor, Moelis & Co. LLC acted as financial advisor, and Milbank, Tweed, Hadley & McCloy LLP provided legal advice to Wastequip in the transaction. Houlihan Lokey acted as financial advisor, and Ropes & Gray LLP provided legal advice to H.I.G.]]>
CalRecycle mandates commercial recycling and commercial organics recycling. The mandate applies to businesses (including public entities) that generate 4 cubic yards or more of commercial solid waste or organics per week and multifamily residential dwellings of five units or more.
SCS will study the city’s current solid waste and recycling programs and the existing residential collection contract to identify opportunities for improvement. SCS also will analyze disposal reporting system data to identify local commercial haulers and develop an approach to ensure compliance and monitoring.
SCS then will work with CalRecycle to develop a plan for annual monitoring of businesses regarding their recycling activities and help El Segundo educate local businesses on recycling and diverting organic waste.
“We are working in partnership with the city of El Segundo to improve its waste and recycling programs,” says Michelle Leonard, vice president with SCS Engineers. “The recommendations and solutions we develop will help the city meet existing and future requirements for residential and commercial waste management.”]]>
"Novelis is proud to offer our unrivaled production capabilities and extensive technical expertise to one of the world's most iconic vehicles," says Marco Palmieri, senior vice president and president of Novelis North America. "We work alongside our customers from program development to launch to meet the industry's evolving needs."
By incorporating aluminum into this design, FCA US joins a number of automakers that are turning to aluminum for the benefits they see in vehicle performance, agility and safety, Novelis says. Thanks in part to lightweight aluminum from Novelis, Jeep enthusiasts also will find it easier to remove the doors, which will be 14 pounds lighter compared with previous models.
"Novelis aluminum offers a safe, sustainable and cost-effective way to lightweight vehicles," says Ganesh Panneer, vice president and general manager, automotive, Novelis North America. "Automotive aluminum applications result in better performance and agility, increased fuel economy and reduced carbon emissions."
Aluminum supply for the all-new, next-generation Wrangler will be sourced from Novelis' facilities in Oswego, New York, and Kingston, Ontario.
Demand for automotive aluminum is expected to rise according to the 2017 Ducker Worldwide survey that projects aluminum content in North American passenger vehicles, particularly light trucks and SUVs, will increase 42 percent from its 2015 level by the year 2028.
Today, more than 200 different vehicle models feature Novelis aluminum, according to the company.]]>
“Our new waste treatment facility is an important part of Levenseat’s ongoing plans to provide the most innovative and economical solutions to managing waste,” Angus Hamilton, director at Levenseat Ltd., says. “The material recycling facility will allow us to maximize recovery of valuable material from municipal solid waste and prepare the remaining waste into a fuel for our energy-from-waste facility. The ultimate goal is to achieve a 98 percent diversion from landfill; Machinex has been key to helping us achieve this, and we are happy to be working with them again on the design and installation of our container recycling facility.”
“What we achieved for Levenseat at their waste treatment facility represents an important part of the future of our industry,” says Jonathan Menard, executive vice president, sales and strategic positioning, Machinex. “Turning waste into energy and removing recyclables is an environmental and economical solution for many large cities and regions, not only in Europe but all around the world.”
The system is processing 42 metric tons of material per hour and it will produce a minimum of 100,000 metric tons per year of refuse-derived fuel (RDF) as a feedstock for the adjacent Levenseat Power Plant. The system also is designed to maximize the recovery of high-value recyclables (such as paper, cardboard, plastic, metal and wood), Machinex says. Additionally, it produces a solid recovered fuel (SRF) stream from the super-light and high-calorific nonrecyclables.
To meet the objectives of the plant, Machinex says it installed shredders, a trommel, air separators, Mach Ballistic separators, Mach Hyspec optical sorting units for plastic and paper, one belt dryer and two Machinex single-ram balers. One of the balers is used for recyclables, while the second baler is dedicated to handling RDF and SRF. Machinex developed this baler specifically for the waste-to-energy industry and it incorporates a plastic twine tying system and bale wrapping.
To increase and assure the quality of RDF recovered from the stream of fines, which includes wet organic material, belt drying technology from the Austrian company Andritz was selected. The continuous dryer is self-sustainable and uses heat generated by the waste-to-energy plant adjacent to the MRF, Machinex says.
Machinex also is installing a container sorting facility next to the waste treatment plant on the Levenseat waste and recycling management site that should be operational in February 2018. The 13-ton-per-hour system will treat 27,000 metric tons of containers from dual-stream collection that includes almost 50 percent glass, according to the equipment make and integrator. The main goals of the new plant are removing the glass efficiently by breaking it into small fragments and recovering the maximum amount of recyclables, including ferrous, nonferrous, aseptic and plastic containers, from the waste stream.]]>
The event will start on the afternoon of April 23rd with a three-hour workshop examining global aluminum demand factors. That session will feature in-depth presentations from CRU analysts Paul Williams, Eoin Densmore and Henry Van.
The following two days, topics discussed will include aluminum’s supply side, profitability, pricing, trade situation, downstream applications and raw materials supply factors.
In addition to CRU analysts offering insight, executives from the following companies and organizations will be making presentations and taking part in panel discussions:
- Hydro, Norway;
- CHALCO, China;
- RUSAL, Russia;
- Braidy Industries, United States;
- Assan Alüminyum, Turkey;
- SALCO, Iran; and
- Hammerer Aluminium Industries, Austria.
Officers from global and national trade organizations also will serve as presenters and panelists at the three-day event, which is being hosted at the Jumeirah Carlton Tower in London’s Knightsbridge neighborhood.
More information on the event, including how to register, can be found on this Web page.]]>
“Plastic materials and products should be allowed to compete on a level playing field for the improvement projects that will eventually form the president’s infrastructure plan. Plastic materials can perform as well or better than more traditional materials and often at a fraction of the cost to the American taxpayer.
“Furthermore, we urge policymakers not to overlook the nation’s recycling facilities when it comes to what needs upgrading. This push to rebuild our nation’s infrastructure presents a unique opportunity to increase the amount of plastic our country recycles and to facilitate growth in the market. A national effort to upgrade these facilities would both support business and employment growth in recycled plastics while simultaneously reducing waste.
“Finally, our industry shares the president’s support for strong, mutually beneficial trade agreements. The North American plastics industry has been in lockstep when it comes to enhancing the benefits of the North American Free Trade Agreement (NAFTA), and we look forward to working with the administration and the Congress to ensure that this and other trade agreements are as strong as they can possibly be.”
PLASTICS, formerly SPI, supports the entire plastics supply chain, representing nearly 1 million workers in the $418 billion U.S. industry. Since 1937, PLASTICS says it has been working to make its members and the industry more globally competitive while advancing recycling and sustainability.
Ingle will be responsible for driving Unifi’s eco-friendly efforts and initiatives and will establish a singular sustainability mission for the company.
“We look forward to Eddie’s leadership in continuing to grow Unifi’s global sustainability strategy,” says Kevin Hall, Unifi chairman and CEO. “Everything Unifi does is done with an environmental mindset and through the lens of ‘for the good of tomorrow.’ Promoting Eddie to this position should allow Unifi to accelerate our sustainability goals and focus on further developing the company as a sustainability thought leader.”
Ingle began his career at Unifi’s operations in Letterkenny, Ireland, in 1986 and moved to Winston-Salem, North Carolina, in 1991 to work for Unifi in the U.S. Over the years, he has held numerous leadership positions.
“Unifi’s passion for recycling and sustainability has always been a point of pride for me,” Ingle says. “My goal moving forward is to collaborate across the company and industry to develop sustainable solutions that create value for Unifi, our customers and consumers.”
Unifi is a global textile provider and one of the world’s leading innovators in manufacturing synthetic and recycled performance fibers. Through Repreve, one of Unifi’s proprietary technologies and the global leader in branded recycled performance fibers, Unifi has transformed more than 10 billion plastic bottles into recycled fiber for new clothing, shoes, home goods and other consumer products.]]>
The companies will operate under the name Timberline Disposal & Recycling, based in Silverthorne, Colorado. Mountain Waste & Recycling, which began as an independent company in the Roaring Fork Valley near Aspen, also owns Vail Honeywagon, and the company says it tends to be more attuned to the needs of mountain customers.
With this merger, Mountain Waste & Recycling President Scott Eden says competition has become easier and more effective.
“Competition typically serves to contain prices, but the competition needs to be effective,” says Eden. “These companies and their customers will now benefit from increased purchasing powers and operating efficiencies.”
Some redundant truck routes will be eliminated, and there will be no employee layoffs, according to the company. Mountain Waste says its ongoing growth will require that the company retain the services of all its employees.
“Customers will begin to experience an expanded, robust line of services, including construction dumpsters, pick-up of organics, portable restrooms, special event sustainability services and more, all under one company umbrella,” says Eden.
Terms of the merger, including purchase price, were not disclosed. Two of the top executives of the merging companies will remain investors with Mountain Waste, and Eden says Mountain Waste will rely on them for suggestions about ways to enhance the companies’ reputations for customer service.
Customers of the three merging companies should continue to set their recycling and trash out for collection on the same days as they always have, and customers should pay their bills in the same ways, until further notice. Signage and other branding will be incorporated on a gradual basis. Eventually, customers of all three companies will have one phone number and one website with a single point for online payment.
Mountain Waste & Recycling is a material management company, with operating divisions throughout Colorado, including Pro Disposal & Recycling, which operates more than 50 trucks in the Denver metro area, serving residential and commercial customers. Mountain Waste also offers waste, recycling and compost services in the Roaring Fork Valley, covering from Aspen to Battlement Mesa. Subsidiaries include Vail Honeywagon, operating in Vail Valley; and Timberline Disposal & Recycling, operating in Summit and Clear Creek counties. The companies offer services for construction sites, special events and other situations where materials management is an issue, and where customers want to prioritize diversion from landfills, improve sustainability and promote proactive environmentalism.]]>
Bonnell is a graduate of the Broad School of Business at Michigan State University and recently worked in the Wealth Management Advisory Department of Plante Moran, Auburn Hills, Michigan.
Previously as an intern at PG, Bonnell developed a strong understanding of credit risk analysis and the credit decision process with specialized focus on the metals industry, the company says. In his new position, he will be responsible for business development and sales in North America across a broad spectrum of the metals industry.
ProfitGuard is a credit reporting service for the metals industry. Founded in 2000, ProfitGuard provides a credit management platform from which clients can access timely and reliable credit, financial and trade payment information through a simple annual subscription, the company says.]]>
The first phase of the program started in January 2018. The project is aimed at combating what Nashville Mayor Megan Barry identifies as significant glass bottle waste after she toured local restaurants, the report says.
Public Works predicts about two-thirds of the downtown Nashville area’s more than 6,600 tons of collected trash in 2017 was glass.
“Lower Broadway has become an international tourist destination, and long-neck bottles are now synonymous with the honky-tonk experience,” says Barry. “For too long, we’ve had to throw away glass that could have been recycled and repurposed. This program is like no other, and we are excited to lead the charge toward a more sustainable city.”
Sharon Smith, assistant director at Metro Public Works, told Fox 17, “Last fiscal year, a record of more than 6,600 tons of trash was produced downtown, and we estimate that about two-thirds of that was glass. This will take a significant amount of glass out of the waste stream, where we’re not sending it all to the landfill anymore.”
Public Works is using two new trucks to pick up glass bottles twice a day, seven days a week, Fox 17 reports. The department says it is researching ways to reuse and recycle the glass locally.
Nashville's record tourism has contributed to the trash accumulation, according to Barry.]]>
Massachusetts removes language to impose a fee on paper bag sales under its proposed plastic bag ban
The bill also would ban paper bags that are not made of recycled materials and would direct the Department of Environmental Protection to write regulations to enforce the policy.
The committee vote is only an initial step toward legislation potentially reaching the floor of the Massachusetts House or Senate, according to the report.
The legislation would ban stores from providing single-use plastic bags starting Aug. 1, 2019. While the bill would not preempt cities and towns from further limiting single-use carryout bags, it would render any ordinances or bylaws in place before enactment of the bill "null and void,” the Daily News of Newbury reports.
The bill drops language that would have required stores to charge a fee for recycled paper carryout bags. Marblehead Rep. Lori Ehrlich and Acton Sen. Jamie Eldridge, both Democrats, sponsored the redrafted bill.
Lenox Rep. Smitty Pignatelli, one of the committee chairs, tells the paper he "didn't feel comfortable" with the mandatory fee, adding that retailers could build the cost of giving out recycled paper bags into their business models.
H 2121 would allow stores to continue bagging fruit in handle-free plastic bags, permits bags used over clothes by dry-cleaners and allows pharmacies to provide medication in a paper bag.
Washington-based American Forest & Paper Association (AF&PA) President and CEO Donna Harman issued the following statement in response to the Massachusetts Joint Committee on Environment, Natural Resources and Agriculture’s passage of H 2121:
“Paper is not part of the problem communities are trying to solve. The amended bill is a recognition that a paper bag fee undermines an environmentally responsible option to plastic shopping bags. Paper bags represent a sustainable packaging option for consumers who need carryout bags.”
The Massachusetts Senate previously passed a plastic bag ban via the budget, but the policy has never cleared the House, the Massachusetts Sierra Club tells the Daily News of Newbury.]]>
Ironwood, which made its original investment in Gold Medal Environmental in 2015, says the New Jersey company was sold to Kinderhook Industries, which invested in a partnership with BioHiTech Global. BioHiTech is a Chestnut Ridge, New York-based developer of waste management technologies. Kinderhook is a New York, New York-based private investment firm that manages more than $2 billion of committed capital.
Gold Medal services regions of Pennsylvania, New Jersey and Delaware. The company offers a complete range of integrated services to thousands of customers in those regions, serving residential, institutional, commercial and industrial locations. Gold Medal offers collection, recycling, disposal and dumpster rental services 24/7.
“We are proud to have recognized the growth potential for Gold Medal and provided the resources required to get the company to the next level. The company is well-positioned for strong growth in the densely populated Philadelphia and southern New Jersey markets,” says Dickson Suit, Ironwood Capital managing director. “We are pleased with our hand off to Kinderhook/BioHiTech and confident of their ability to execute on their vision of a next-generation sustainable environmental services company.”
Metso says the deliveries cover its metal recycling product portfolio, including shears, balers and shredders. A number of the orders were for scrap shears, ranging from the small and midsized N-series shears to the heavy-duty EtaCut scrap shears, which are designed especially for scrap yards, steelworks and foundries.
"I am proud to say that Metso is a known and trusted supplier among metal recycling customers globally,” says Uffe Hansen, president of the recycling business at Metso. “Our product offering is one of the most comprehensive in the industry, and our market position is strong. During 2017, the global metal recycling market started to recover after the prolonged downturn, and customers are starting to invest to improve process efficiency and productivity. The improved scrap prices have been instrumental in that.”
Metso is not disclosing the total value of the orders or its customers’ names.
Metso says its product offering for metal recycling covers a wide range of equipment for the fragmentation, compaction and separation of virtually every type of metal scrap. Through the Lindemann, Texas Shredder and N-Series product lines, Metso offers a full range of preshredders, shredders, shears, balers and briquetters, along with the capability to develop custom solutions for customers' ferrous and nonferrous scrap separation processing needs. Metso says its equipment is “designed with state-of-the-art technology and the highest safety standards to help drive sustainable improvements in performance and profitability in our customers' businesses.”
In June 2017, Metso was recognized as the Scrap Equipment Provider of the Year by American Metal Market.
The company says it saw a net loss in the fourth quarter of $727 million, or $1.51 per share. These results include $879 million in special items, principally arising from impairments of goodwill in the forgings and extrusions business and assets in the Latin America extrusions business, the impact of U.S. tax reform and reduction of liabilities for a contingent earn-out and a separation-related guarantee. For the full year, it reported a net loss of $74 million, or 28 cents per share.
Excluding special items, fourth quarter 2017 adjusted income was $152 million, or 31 cents per share, driven by net cost savings and higher volumes, which were partially offset by unfavorable product pricing and mix, Arconic says. Excluding the impact of special items, full-year adjusted income was $618 million, or $1.22 per share.
Fourth quarter 2017 consolidated adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $436 million, up 54 percent year over year. Consolidated adjusted EBITDA excluding special items was $446 million, a 24 percent increase year over year. Consolidated adjusted EBITDA margin excluding special items was 13.6 percent, up 150 basis points year over year, including a 190 basis point negative impact of higher aluminum prices, last-in-first-out (LIFO) and metal lag, the company says.
Full-year 2017 consolidated adjusted EBITDA was $1.8 billion, up 17 percent year over year. Consolidated adjusted EBITDA excluding special items was $1.9 billion, up 9 percent year over year. Consolidated adjusted EBITDA margin excluding special items was 14.3 percent, Arconic says, up 60 basis points year over year, including a 110 basis point year-over-year negative impact of higher aluminum prices, LIFO and metal lag.
Arconic says it continued its cost reduction progress, delivering net cost savings of $68 million, or 2.1 percent of revenue, in the fourth quarter and net cost savings of $232 million, or 1.8 percent of revenue, for the full year. The company also reports an improvement of $111 million year over year in selling, general and administrative expenses (SG&A) excluding special items.
“In 2017, Arconic made progress on growing revenue and profits and taking out cost,” Chief Executive Officer Chip Blankenship says. “However, a significant opportunity for improvement remains. Our challenge is to reinforce strengths, close gaps and identify new opportunities. My goal is to ensure that all of our businesses execute consistently and deliver outstanding returns for our shareholders.”
He adds, “Arconic has foundational strengths and incredible potential. I am convinced that if we stay focused on four priorities—customers, people, operational excellence and technology—we will deliver on Arconic’s potential.”
In the fourth quarter 2017, cash from operations was $612 million, cash used for financing activities totaled $45 million and cash used for investing activities was $236 million. Free cash flow for the quarter was $376 million. In 2017, Arconic redeemed $1.25 billion of debt, ending the year with debt of $6.8 billion and cash on hand of $2.15 billion. Cash from operations in 2017 was $701 million. Free cash flow for the year was $105 million, according to the company.
For the fourth quarter, Arconic’s Engineered Products and Solutions (EP&S) segment reports revenue of $1.5 billion, an increase of 6 percent year over year, and adjusted EBITDA of $296 million, up $31 million year over year. Increased aerospace volume in engines and airframes coupled with strong net cost savings more than offset unfavorable price and mix, the company says. The adjusted EBITDA margin was 19.9 percent, up 110 basis points year over year.
Continuing Arconic’s efforts to lower its cost profile, EP&S consolidated its organizational structure, collapsing four business units into three and reducing layers. The company says these changes are expected to save approximately $15 million in 2018 and create a streamlined organization to accelerate progress and deliver for customers and shareholders.
For the full year, EP&S saw revenue of $5.9 billion, up 4 percent year over year. It saw adjusted EBITDA of $1.2 billion, up 2 percent year over year, and an adjusted EBITDA margin of 20.6 percent, down 30 basis points year over year.
Its Global Rolled Products (GRP) segment reports revenue of $1.2 billion, an increase of 15 percent year over year, for the fourth quarter of 2017. Organic revenue was up 7 percent. Adjusted EBITDA was $124 million, up $8 million year over year, driven by strong automotive volume and net cost savings, partially offset by reduced aerospace wide-body build rates, airframe destocking, pricing pressure in regional specialties and the planned Tennessee Packaging ramp down, according to the company. The adjusted EBITDA margin was 10 percent, down 80 basis points year over year, driven by a 160 basis point negative impact of higher aluminum prices.
For the full year, the GRP segment saw revenue of $5 billion, up 3 percent year over year, while organic revenue was up 5 percent year over year. GRP saw adjusted EBITDA of $599 million, up 4 percent year over year, and an adjusted EBITDA margin of 12 percent, up 10 basis points year over year, including a 140 basis point negative impact of higher aluminum prices.
The company’s Transportation and Construction Solutions (TCS) segment delivered revenue of $518 million, an increase of 14 percent year over year. Organic revenue was up 8 percent. Adjusted EBITDA was $84 million, up $9 million year over year, as higher volume and cost reductions more than offset headwinds, including unfavorable price and mix and higher aluminum prices. Adjusted EBITDA margin was 16.2 percent, down 20 basis points year over year, including a 170 basis point negative impact of higher aluminum prices.
For the full year, the TCS segment saw revenue of $2 billion, up 10 percent year over year, and organic revenue up 7 percent year over year. Its adjusted EBITDA was $321 million, up 10 percent year over year, and an adjusted EBITDA margin of 16.2 percent, up 10 basis points year over year, including a 120 basis point negative impact.
To further enhance the company’s financial position and return capital to shareholders, Arconic’s board of directors has authorized a share repurchase program of up to $500 million of its outstanding common stock and a $500 million early debt reduction. Under the share repurchase program, the company may repurchase shares from time to time, in amounts, at prices and at such times as the company deems appropriate. Repurchases will be subject to market conditions, legal requirements and other considerations, Arconic says. The company is not obligated to repurchase any specific number of shares or to do so at any particular time, and the share repurchase program may be suspended, modified or terminated at any time without prior notice. Arconic currently has approximately 483 million shares of common stock outstanding.
In addition, Arconic says it intends to redeem in March 2018 all of its outstanding 5.72 percent notes due in 2019 in accordance with the terms of the notes and the indenture, dated Sept. 30, 1993, between Arconic and The Bank of New York Mellon Trust Co. N.A. as trustee. As of Feb. 5, 2018, the aggregate outstanding principal amount of the notes is $500 million.
Blankenship, who officially joined the company Jan. 15, has initiated a review of Arconic’s strategy and portfolio. The company says it expects to complete this review by the end of the year.
As part its drive to reduce corporate overhead, Arconic has announced that it will relocate its global headquarters in 2018 out of New York City to a more cost-effective location. The company says it expects to complete the move by the end of 2018.]]>
According to a new study by Cleveland-based research firm The Freedonia Group, by 2021 metal panels will make up 18 percent of siding demand for commercial buildings, giving it the second largest share in that market.
Writes The Fredonia Group, “A growing interest in prefabricated metal buildings, which reduce construction times and labor costs for commercial customers, will help drive demand.”
Other predictions in the study, titled “Siding Market in the US, 17th Edition,” include that overall siding demand in the U.S. is projected to advance more than 3 percent per year to 101.5 million squares in 2021. (A square represents 100 square feet of siding.)
In the residential sector, demand growth for fiber cement will be among the fastest for any siding product, “driven by its ability to inexpensively mimic natural wood, brick and stone siding materials,” according to the Freedonia Group.
Other recently released studies by The Freedonia Group, and available through its website, cover the building insulation market in the United States and the global market for windows and doors.]]>