FORT LEE, N.J., Sept. 30 /PRNewswire-FirstCall/ -- Empire Resources, Inc. (OTCQX: ERSO), a distributor of value added, semi-finished aluminum products, today announced that it plans to shutter the extrusion press at its Baltimore facility and will take a write-down of approximately $2.97 million, or $.31 per share, for the third quarter of 2009, which will result in a loss for the quarter.
The decision to shut down the press was the result of the ongoing weakness and overcapacity in the aluminum extrusion marketplace. Nathan Kahn, CEO stated that "The shutdown will permanently relieve the negative financial impact that the Company encountered in attempting to bring the facility online and to full capacity." The Company does not know if or when it will resume extrusion operations in the future.
Mr. Kahn further stated that "the shutdown will have no material impact on the Company''s core distribution business and will not impact the rest of its Baltimore warehouse and distribution facility."
The Company also announced that its Board of Directors has declared a cash dividend of $0.025 per share. The dividend is payable on October 21, 2009 to stockholders of record at the close of business on October 5, 2009.
The Board of Directors intends to review its dividend policy on a quarterly basis and a determination by the Board of Directors will be made subject to profitability, free cash flow and the other requirements of the business.
Empire Resources, Inc., is a distributor of a wide range of semi-finished aluminum products to customers in the transportation, automotive, housing, appliance and packaging industries in the U.S., Canada, Australia, New Zealand and Europe. It maintains supply contracts with aluminum mills in various parts of the world.
This press release contains forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks include, but are not limited to, the ability of the company to grow internally or by acquisition and to integrate acquired businesses, not being able to improve operating margins and efficiencies, changing industry and competitive conditions, and other risks referred to in the Company''s publicly available statements and periodic reports.
Empire Resources, Inc.
CONTACT: David Kronfeld of Empire Resources, Inc., +1-917-408-1940,
dkronfeld@empireresources.com
Web Site: http://www.empireresources.com/
