Canadian aluminium can manufacturer Alcan reaffirmed that second quarter operating earnings are expected to be at the upper end of its previously disclosed guidance of US$0.35 to US$0.45 per common share.
While the LME price has remained relatively stable during the second quarter, recent strengthening of the Canadian dollar is expected to result in significant non-operating currency translation effects for the quarter.
New standards for the accounting of goodwill and other intangible assets have been in effect since the beginning of this year. Under these standards, the company will be recording an impairment charge of US$748 million (€766m).
The adjustment reflects the decline in end-market conditions in the period from the Algroup merger in October 2000 to 1 January 2002. The company said that this adjustment would have no impact on future growth, nor would it affect its cash flow.
Alcan is a multinational, market-driven company and a global leader in aluminum and specialty packaging with 2001 revenues of US$12.6 billion. With operations in primary aluminium, fabricated aluminium as well as flexible and specialty packaging, Alcan employs 48,000 people and has operating facilities in 38 countries.