Empire Resources Announces Closure and Write-Down of its Baltimore Extrusion Press and Announces Third Quarter Dividend
September 30 2009 - 4:49PM
PR Newswire (US)
FORT LEE, N.J., Sept. 30 /PRNewswire-FirstCall/ -- Empire
Resources, Inc. (OTCQX: ERSO), a distributor of value added,
semi-finished aluminum products, today announced that it plans to
shutter the extrusion press at its Baltimore facility and will take
a write-down of approximately $2.97 million, or $.31 per share, for
the third quarter of 2009, which will result in a loss for the
quarter. The decision to shut down the press was the result of the
ongoing weakness and overcapacity in the aluminum extrusion
marketplace. Nathan Kahn, CEO stated that "The shutdown will
permanently relieve the negative financial impact that the Company
encountered in attempting to bring the facility online and to full
capacity." The Company does not know if or when it will resume
extrusion operations in the future. Mr. Kahn further stated that
"the shutdown will have no material impact on the Company's core
distribution business and will not impact the rest of its Baltimore
warehouse and distribution facility." The Company also announced
that its Board of Directors has declared a cash dividend of $0.025
per share. The dividend is payable on October 21, 2009 to
stockholders of record at the close of business on October 5, 2009.
The Board of Directors intends to review its dividend policy on a
quarterly basis and a determination by the Board of Directors will
be made subject to profitability, free cash flow and the other
requirements of the business. Empire Resources, Inc., is a
distributor of a wide range of semi-finished aluminum products to
customers in the transportation, automotive, housing, appliance and
packaging industries in the U.S., Canada, Australia, New Zealand
and Europe. It maintains supply contracts with aluminum mills in
various parts of the world. This press release contains
forward-looking statements. Such statements involve various risks
that may cause actual results to differ materially. These risks
include, but are not limited to, the ability of the company to grow
internally or by acquisition and to integrate acquired businesses,
not being able to improve operating margins and efficiencies,
changing industry and competitive conditions, and other risks
referred to in the Company's publicly available statements and
periodic reports. DATASOURCE: Empire Resources, Inc. CONTACT: David
Kronfeld of Empire Resources, Inc., +1-917-408-1940, Web Site:
http://www.empireresources.com/
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