RELEASE: ***BREAKING TODAY*** Noranda’s Earnings Report Conflicts with Recent PSC Claims: Rosy Financial Picture For Wall Street a Far Cry from Destitution Pleas to PSC
Jefferson City, MO – Conflicting statements from Noranda Aluminum call last week’s claims into question. In an earnings call today with Wall Street investors to discuss annual and 4th quarter corporate performance, Noranda executives describe a healthy company. While just four days ago, Noranda threatened its demise filing claims with the Missouri Public Commission describing a company so destitute they required other consumers to pick up the tab for lower electric rates or face closure.
Noranda Aluminum already pays 60% less than the average Missouri consumer. And today, Noranda announced that their financial health allowed them to pay dividends to shareholders. (NASDAQ, 2/14/14)
“They can’t have it both ways. Noranda can’t tell the PSC that they’re in such desperate financial shape that they must be allowed to pay even less than they already do for electricity and pass those costs on to Missouri consumers, while telling their Wall Street Investors that they’re the picture of financial health with a bright future,” MBEF Executive Director, Irl Scissors said.
Last week, an executive of Noranda told the St. Louis Post-Dispatch that if the company did not get relief through lower electric rates, they would face layoffs and even closure. John Parker, vice president of communications at Noranda, said, “Without this rate change, we would probably have to look at layoffs of 150 to 200 more employees in the near term and ultimately the smelter would be subject to closure.
Today, Noranda’s CEO Layle (Kip) Smith said in a company press release, “We delivered solid fourth quarter performance in our key operating metrics. We generated positive cash flow, and made meaningful progress on key productivity projects….Our fourth quarter performance was a strong finish to 2013, which was a year of stable overall demand, focused cost control, and improved reliability and operating effectiveness.”
Scissors continued, “Seeking a bailout on the backs of Missouri consumers while boasting to Wall Street about a robust year, paying shareholder dividends raises serious questions about their representations before the PSC.”
###
Contact: Adrianne Marsh (314) 827-6141
