Real Industry Inc. significantly widened its net loss in the fourth quarter compared to a year ago.
The Sherman Oaks investment holding company reported a net loss of $80.4 million (-$2.84 a share) on revenue of $305 million in the quarter ended Dec. 31. That compares to a net loss of $3.9 million (-16 cents) in the same period a year earlier.
Real Industry owns an aluminum recycling business, Real Alloy, in Cleveland.
Interim Chief Executive Kyle Ross said that the recycling operation had a challenging environment last year, which included pricing difficulties. But with aluminum alloy prices increasing early this year, that is positive for Real Alloy.
“While this improved pricing environment is not expected to significantly impact Real Alloy’s financial performance in the first quarter of 2017 … we are optimistic that the higher metal prices and normal seasonal increases in scrap flow will result in improved scrap spreads and segment adjusted (earnings) in the second quarter and beyond,” Ross said in a prepared statement.
Earnings were released after the market close Monday. Shares on Tuesday closed down 62cents, or more than 14 percent, to $3.83 on the Nasdaq.