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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 26, 2003
COMMONWEALTH INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 13-3245741
(State of incorporation) (I.R.S. Employer Identification No.)
500 West Jefferson Street
PNC Plaza -19th Floor
Louisville, Kentucky 40202-2823
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (502) 589-8100
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Item 9. Regulation FD Disclosure.
See the following press release, dated June 26, 2003, announcing cost
cutting initiatives in response to challenging market conditions:
NEWS RELEASE
Contact: Kim S. Knotts
Director of Investor Relations
(502) 588-8207
COMMONWEALTH INDUSTRIES ANNOUNCES COST CUTTING INITIATIVES IN
RESPONSE TO CHALLENGING MARKET CONDITIONS
LOUISVILLE, Ky. (June 26, 2003) - Commonwealth Industries, Inc. (NASDAQ/NM:
CMIN) today announced it will implement several actions intended to reduce the
Company's operating cost structure as it continues to face difficult business
conditions. Commenting on the announcement, Mark V. Kaminski, President and
Chief Executive Officer, said, "Orders are at historically low levels and costs
are rising in many areas. We expect second quarter shipments from our aluminum
business to be approximately 25% below those of the second quarter of 2002, and
anticipate continued softness in the third quarter. Our Alflex business
continues to experience pressure on sales volumes as a result of soft demand in
the commercial construction sector. In response to the current economic
environment we are taking steps to more closely align production levels with our
order volume. Additionally we are aggressively pursuing additional cost
reduction actions.
"Much of our manufacturing cost structure is fixed and cannot be easily
reduced over a short time frame," Kaminski continued. "However, we are
addressing selling, general and administrative expenses and other variable
costs. We plan to make these modifications effective immediately and expect to
see initial benefits in the second quarter."
Commonwealth will recognize approximately $2.5 million of additional net
income or approximately $0.16 per share in the 2003 second quarter and
approximately $2.0 million of additional net income or approximately $0.12 per
share in each of the third and fourth quarters of 2003 as a result of limiting
eligibility and increasing premiums for its post-retirement medical insurance
for all non-bargaining Kentucky employees. In addition to the effect in 2003,
the Company estimates that net income will be increased approximately $8.3
million in 2004 and $1.7 million in 2005 as a result of the changes to the
post-retirement medical insurance. Other actions to reduce ongoing costs include
the termination of certain retirement and deferred compensation programs for
Company officers, suspension of certain non-bargained incentive pay, institution
of reduced work schedules and/or mandatory vacation periods at some of its
manufacturing facilities, and modification of vacation policies.
As a result of weaker than expected sales, but including the $2.5 million
net income effect of the post retirement medical insurance plan modification,
Commonwealth expects a net loss in the range of $0.18 to $0.23 per share for the
second quarter of 2003. The Company anticipates challenging business conditions
will continue throughout the balance of 2003.
Commonwealth Industries is one of North America's leading manufacturers of
aluminum sheet for distributors and the transportation, construction, and
consumer durables end-use markets. The Company has direct-chill casting
facilities in Kentucky and continuous casting mini-mills in Ohio and California.
Commonwealth also is a leading manufacturer of innovative electrical products
through its Alflex operations in California and North Carolina. For more
information about the Company, visit Commonwealth's website at
www.ciionline.com.
Certain statements set forth above, may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995. All statements regarding the Company's and its subsidiaries' expected
future financial position, results of operations, cash flows, funds from
operations, dividends, financing plans, business strategy, budgets, projected
costs, capital expenditures, competitive positions and growth opportunities are
forward-looking statements. Such forward-looking statements are based on
management's current expectations and include known and unknown risks,
uncertainties and other factors, many of which the Company is unable to predict
or control, that may cause the Company's actual results or performance to
materially differ from any future results or performance expressed or implied by
such statements. Such factors may include, without limitation, the effect of
global economic conditions, the ability to achieve the level of cost savings or
productivity improvements anticipated by management, the effect (including
possible increases in the cost of doing business) resulting from war or
terrorist activities or political uncertainties, the ability to successfully
implement new marketing and sales strategies, the impact of competitive products
and pricing, product development and commercialization, availability and cost of
critical raw materials, capacity and supply constraints or difficulties, the
success of the Company in implementing its business strategy, and other risks as
detailed in the Company's various filings with the Securities and Exchange
Commission.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
COMMONWEALTH INDUSTRIES, INC.
By /s/ Henry Del Castillo
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Henry Del Castillo
Vice President Finance
Date: June 26, 2003