Bonnell Al shipments jump on strong demand

Georgia-based extruder Bonnell Aluminum posted a 20pc increase in fourth quarter shipments compared with a year earlier amid stronger demand from all its primary end markets.

Shipments rose to 60.6mn lbs in the fourth quarter from 50.5mn lbs a year earlier.

Sales rose by 25pc over the same period to $152mn on higher volumes and an increase in average selling prices, caused mostly by higher metal premiums and exchange prices.

The Argus midwest transaction price for P1020 was an average of $1.0844/lb during the fourth quarter, up from an average $1.0349/lb a year earlier, as the Section 232 tariff levied in early 2018 raised premiums in the US.

Increased shipments and prices caused fourth quarter operating profits to jump by 46pc to $13.52mn in the fourth quarter from a year earlier.

Full-year 2018 shipments, excluding the impact of Utah acquisition Futura, rose by 8pc to 190mn lbs from 2017. Full-year profits rose by 11pc to $48.6mn on higher volumes and favorable product mix.

Profits would have been $3mn higher if not for operating inefficiencies at a new extrusion line at the Niles, Michigan, plant the company said.