SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 25, 1997
COMMONWEALTH INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-25642 13-3245741
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
500 West Jefferson Street
19th Floor
Louisville, Kentucky 40202-2823
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (502) 589-8100
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Item 5. Other Events
See the following press release, dated August 25, 1997, announcing that
Commonwealth Industries, Inc. anticipates lower third quarter results:
Contact: William G. Toler
Vice President, Finance
and Administration
FOR IMMEDIATE RELEASE (502) 589-8100
COMMONWEALTH INDUSTRIES ANTICIPATES
LOWER THIRD QUARTER RESULTS
LOUISVILLE, Kentucky (August 25, 1997) Commonwealth Industries, Inc.
(Nasdaq/NM:CMIN) today announced that, primarily because of adverse market
pricing conditions, the Company expects to report results for the third quarter
of 1997 that will be substantially below the current consensus analyst earnings
estimate of $.43 per share.
Commonwealth plans to report third quarter results on October 15, 1997.
While it is too early for the Company to predict with precision its
third quarter results, it has become apparent in recent weeks that third quarter
sales are being adversely affected by weaker pricing trends. As a result,
Commonwealth expects its material margins to decline in excess of $0.01 per
pound from the level experienced in the second quarter of this year, which in
turn was down from the first quarter of 1997. Rather than meet lower prices, the
Company decided to forego orders in several instances and to maintain its
selling prices on the basis that they are justified by the Company's superior
service, including its ability to satisfy the demand for shorter lead times.
Partly as a result of not lowering its selling prices, the Company had lower
shipments than anticipated in July. As a result, shipment volumes are expected
to decline 5% to 10% in the third quarter versus the second quarter of 1997.
As part of the Company's efforts to establish pricing leadership,
Commonwealth initiated a price increase on August 19 of between $0.02 and $0.03
per pound effective for all orders deliverable in November 1997 and thereafter.
The price increase applies to all of the Company's aluminum sheet products in
all markets.
The expected lower sales volumes in the third quarter are also due to
some unplanned equipment outages. In particular, Commonwealth incurred
unexpected delays in restarting its Lewisport, Kentucky hot mill following
planned maintenance downtime in late June. For a short time following the
restart of this mill, the Company also rejected an abnormally high number of
products which did not meet specified tolerances. These delays and ensuing
product reject problems cost the Company an estimated 3-4 million pounds of
production. In addition, the Company experienced two unplanned cold mill outages
at its Uhrichsville, Ohio plant, which resulted in foregone production estimated
at 2-4 million pounds.
Commonwealth Industries is one of North America's leading manufacturers
of aluminum sheet for distributors and the transportation, construction, and
consumer durables end-use markets. The Company has direct-chill casting
facilities in Kentucky - one of the largest multi-purpose aluminum rolling mills
in North America - and continuous casting mini-mills in Ohio and California.
Commonwealth also is a leading manufacturer of innovative electrical wiring
products through its Alflex operations in California.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
COMMONWEALTH INDUSTRIES, INC.
By: /s/ Donald L. Marsh, Jr.
--------------------
Donald L. Marsh, Jr.
Executive Vice President, Chief Financial
Officer and Secretary
Date: August 25, 1997
