Friday, April 27, 2012

Birmingham Aluminum expands after funding is secured

An aluminium and multi-metals components manufacturer has expanded its West Midlands headquarters after getting financial backing.
Birmingham Aluminium has invested £300,000 in the purchase of the unit next door to its base on Farrow Road in Great Barr, along with additional machinery, after securing the funding through Yorkshire Bank’s Investing For Growth initiative.
The company, which employs a total of 24 people, and has increased turnover by 20 per cent to £3.06 million over the last 12 months, now has around 22,500 sq ft of space after buying the 7,500 sq ft unit.
Joint-managing director, Steve Kane, said the investment represented one of the biggest expansions in the company’s 16 year history and was made possible following a surge in demand for its products on the continent.
“Our overseas market has probably doubled over the last 18 months, and now represents around 15 per cent of our turnover, which is up by a fifth in the last year,” he said.
“One of the major reasons behind this growth has been due to the success of our website after we translated it into seven languages with help from the Birmingham Chamber of Commerce.
“Orders and enquiries from countries such as France, Germany, eastern Europe, China, the Benelux countries, Scandinavia, Australia and USA have really taken off over the last 18 months and have led to us being able to make this investment.”
Birmingham Aluminium produces around 7,000 products for the electronics, transport, drives and controls, leisure, security and furniture components sectors with its products found in anything from electrical goods to train engines.

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Noranda Aluminum Holding Beats Estimates but Has a Big Earnings Drop

Noranda Aluminum Holding reported earnings on April 25. Here are the numbers you need to know.
The 10-second takeaway For the quarter ended March 31 (Q1), Noranda Aluminum Holding met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Gross margins contracted, operating margins grew, net margins dropped.
Revenue details Noranda Aluminum Holding booked revenue of $353.5 million. The five analysts polled by S&P Capital IQ anticipated revenue of $352.0 million on the same basis. GAAP reported sales were 10% lower than the prior-year quarter's $394.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details Non-GAAP EPS came in at $0.18. The six earnings estimates compiled by S&P Capital IQ anticipated $0.06 per share on the same basis. GAAP EPS of $0.24 for Q1 were 57% lower than the prior-year quarter's $0.56 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details For the quarter, gross margin was 13.9%, 290 basis points worse than the prior-year quarter. Operating margin was 10.8%, 30 basis points better than the prior-year quarter. Net margin was 4.6%, 510 basis points worse than the prior-year quarter.
Looking ahead Next quarter's average estimate for revenue is $373.8 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $1.49 billion. The average EPS estimate is $0.92.
Investor sentiment The stock has a three-star rating (out of five) at Motley Fool CAPS, with 33 members out of 36 rating the stock outperform, and three members rating it underperform. Among 10 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 10 give Noranda Aluminum Holding a green thumbs-up, and none give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Noranda Aluminum Holding is outperform, with an average price target of $13.31.
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