Globe Specialty Metals has declared that its ferrosilicon plant facility at Bridgeport, Alabama has reopened for operation, following the renovations after the November fire. Hence, EBITDA for the Q2 ended December 31, 2011 is estimated to decline by $5.0 M.
Globe expects an insurance restitution for the loss following the devastation. The company anticipates that the insurance proceeds will compensate the loss.
The Company also completed renovation and re-construction of six domestic furnaces out of fourteen, during the fiscal Q2. Following its completion in December, the furnaces are currently under effective operation. Due to considerable interruption of services, the company manufactured around 5,000 MT less silicon metal in the quarter, acquiring considerable maintenance expenses. Resulting from the increased operating expenses incurred during the outages and the mark-to-market of the firm’s power hedge and foreign exchange, EBITDA for the quarter is evaluated to decline by $2.5 M from the previous quarter. Further, due to the lower shipments and pricing, EBITDA will decline by $2.0 M.
The overall evaluations show that Globe EBITDA has declined by $12.0M of EBITDA in the quarter ended December 31, 2011.
The furnaces have resumed operations at the company’s facility and its consistent operation caters to the intricate requirements of its customers. This has been demonstrated in the recent reports on major end market participants.
Globe will report fiscal Q2 earnings accomplished in December 31, 2011 in the earnings conference to be held on February 6, 2012.
Source: http://www.glbsm.com/