Commonwealth Industries amends loan covenants to cover special charges

By Sara Rosenberg

New York, July 21 - Commonwealth Industries Inc. amended its credit facility to modify some financial covenants to cover special charges related to, among other things, mark-to-market adjustments of aluminum hedging transactions, according to a company news release.

The aluminum hedging transactions are expected to result in a cost of about $0.28 per share. Including this special charge, the company now expects to report a net loss in the range of $0.30 to $0.35 per share in the second quarter.

"Our initial assessment of Commonwealth's operations has led us to re-energize the focus on our core operations, shed non-core assets and develop a plan for step-change productivity improvement. The special charges we are taking this quarter will strengthen our position in the improving aluminum industry environment and provide a more efficient cost structure for the future," president and chief executive officer Steven J. Demetriou said in the release.

Commonwealth Industries is a Louisville, Ky., manufacturer of aluminum sheet.

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