This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Globe Specialty Says Fiscal 2Q EBITDA Will Be Down

NEW YORK (AP) â¿¿ Globe Specialty Metals Inc. said Friday that it expects a fire and other furnace outages at its plants will take a bite out of its fiscal second-quarter earnings.

The silicon alloy maker said it expects earnings before interest, taxes, depreciation and amortization to fall by about $12 million from its fiscal first-quarter total.

The silicon alloy maker said it expects costs related to the November fire at an Alabama facility to lower its EBITDA for the quarter ended Dec. 31 by about $5 million.

Globe said it has filed a claim with its insurance carriers and is working with them to resolve it. The facility has since resumed operations and Globe said it expects insurance proceeds to ultimately cover most of its lost profits and all of its repairs and replaced equipment.

In addition, Globe said it completed planned maintenance and upgrades on six of its fourteen other domestic furnaces in during the quarter and that those furnaces are now operating at full capacity.

As a result of the outages, Globe said it produced about 5,000 metric tons less silicon metal in the fiscal second quarter and incurred significant maintenance expenses and costs. Those actions are expected to reduce EBITDA by about $2.5 million, the company said.

Marking the value company's power hedge and foreign exchange to market prices is expected to reduce EBITDA by an additional $2.5 million, with lower shipments and pricing expected take off another $2 million.

The company said it plans to release its fiscal second-quarter earnings on Feb. 6.

Globe share fell 8 cents to $15.37 in morning trading.
Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 -1.01%
FB $117.26 -0.68%
GOOG $701.43 0.82%
TSLA $212.10 -4.70%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs