8-K

.31 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of report (Date of earliest event reported): May 3, 2018

ALERIS CORPORATION

(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

Delaware 
(State or other jurisdiction
of incorporation) 333-185443
(Commission File Number) 27-1539594 
(IRS Employer
Identification No.)

25825 Science Park Drive, Suite 400, Cleveland, Ohio 44122
(Address of Principal Executive Offices, including Zip Code)

(216) 910-3400
(Registrant’s Telephone Number, Including Area Code)

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company	o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with an new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.	o

Item 2.02     Results of Operations and Financial Condition.

On May 3, 2018, we issued a press release announcing our financial results for the three months endedMarch 31, 2018. A copy of the press release is furnished hereto as Exhibit 99.1 and is hereby incorporated into this Item 2.02 by reference.

The information contained in Item 7.01 concerning management's presentation materials is hereby incorporated into this Item 2.02 by reference.

The information contained in Item 2.02 of this Current Report and the attached exhibits shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01     Regulation FD Disclosure.

A copy of management’s presentation materials for the May 3, 2018 earnings conference call is furnished hereto as Exhibit 99.2 and is hereby incorporated into this Item 7.01 by reference.

The information contained in Item 7.01 of this Current Report and the attached exhibits shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press release dated May 3, 2018.

99.2 May 3, 2018 Management Presentation Materials.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

	ALERIS CORPORATION
Date: May 3, 2018
	/s/ I. Timothy Trombetta
	By: I. Timothy Trombetta
	Its: Vice President and Controller

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press release dated May 3, 2018.
99.2	May 3, 2018 Management Presentation Materials.

EX-99.1

     For Immediate Release

May 3, 2018

Aleris Reports First Quarter2018 Results

CLEVELAND, Ohio – May 3, 2018 – Aleris Corporation today reported results for the three months endedMarch 31, 2018.

First Quarter Summary

▪ Net income of $5 million compared to net loss of $35 million in the first quarter of 2017

▪ Adjusted EBITDA of $54 million; up from $52 million in the first quarter of 2017

▪ North America benefited from strong demand, improved operating performance and a favorable metal environment

▪ Higher global automotive volumes from strong Europe demand and commercial shipments from new North America automotive assets

▪ Europe unfavorably impacted by continued aerospace destocking headwinds, price pressure and a weaker U.S. dollar

▪ Asia Pacific aerospace volume growth drove improvements

▪ Liquidity of approximately $243 million as of March 31, 2018; liquidity does not include the final $20 million installment of customer capacity reservation fees received early in the second quarter of 2018

Outlook

▪ Second quarter segment income and Adjusted EBITDA expected to be meaningfully higher than the second quarter of 2017 from anticipated increases in global automotive and North America building and construction and distribution volumes, as well as favorable metal spreads

▪ Continue to expect that full year 2018 segment income and Adjusted EBITDA will be substantially higher than prior year

▪ Commercial shipments from new North America automotive assets are expected to show significant ramp up in second half of 2018 based on committed volumes

▪ Global aerospace volumes expected to benefit from higher aircraft production rates and new global, multi-year customer contracts after inventory destocking subsides, anticipated in the second half of the year

▪ European automotive volume expected to benefit from new model launches

▪ Favorable year-over-year scrap spreads expected in North America, particularly through the second quarter of 2018

▪ A weaker U.S. dollar will negatively impact results in 2018

“The execution of our strategy is beginning to deliver benefits, as the multiple investments we’ve made to service higher value industries from strategic locations are now working in concert to drive sustainable growth,” Sean Stack, Aleris Chairman and CEO said. “With solid demand expected to continue in automotive, aerospace and building and construction, and our continued focus on operational excellence, we expect to deliver strong results in the second quarter and beyond.”

1

	For the three months ended
	March 31, 2018		March 31, 2017
(Dollars in millions, metric tons in thousands)	(unaudited)
Metric tons of finished product shipped	209		198
Revenue	$	802	$	674
Commercial margin (1)	$	325	$	294
Segment income	$	72	$	64
Net income (loss)	$	5	$	(35	)
Adjusted EBITDA (1)	$	54	$	52

(1) See the attached tables for a reconciliation to the applicable GAAP measure.

First Quarter2018 Results

Net income was $5 million in the first quarter of 2018 compared to a net loss of $35 million in the first quarter of 2017. Adjusted EBITDA was $54 million in the first quarter of 2018, up from $52 million in the first quarter of 2017. First quarter net income and Adjusted EBITDA were impacted by the following:

▪ favorable metal spreads, resulting from increased aluminum prices, improved scrap availability in North America and strategic metal purchasing, were partially offset by lower rolling margins associated with lower contractual prices and weaker European aerospace spot market prices. Metal spread and rolling margin changes increased Adjusted EBITDA approximately $7 million;

▪ a 6 percent increase in volumes partially offset by a weaker mix of products sold increased Adjusted EBITDA approximately $3 million. The volume increase resulted from higher global automotive and North America building and construction and distribution shipments. New multi-year supply agreements and customer model launches led to the increase in automotive shipments. North America distribution volume increased as sales in the first quarter of 2017 were impacted by a strategic build of inventory in advance of the extended planned outage at our Lewisport facility. The unfavorable mix resulted primarily from a decrease in Europe aerospace shipments due to continued destocking and weaker mix of aerospace products;

▪ better European operating performance led to lower finished good inventory levels and unfavorable cost absorption, which decreased Adjusted EBITDA by approximately $5 million;

▪ a weaker U.S. dollar decreased Adjusted EBITDA approximately $3 million; and

▪ productivity improvements offset labor cost inflation as well as significantly higher freight costs.

In addition, net income was also favorably impacted by the following:

▪ a $42 million favorable change in unrealized derivative gains/losses ($34 million of unrealized gains in the first quarter of 2018 compared to $8 million of unrealized losses in the first quarter of 2017);

▪ a $7 million favorable variation in metal price lag ($9 million favorable in the first quarter of 2018 compared to $2 million favorable in the first quarter of 2017). Metal price lag represents the difference between the price of primary aluminum included in our revenues and the price of aluminum impacting our cost of sales net of hedge gains and losses; and

▪ a $5 million decrease in the tax provision.

2

These favorable changes to net income were partially offset by:

▪ a $9 million increase in depreciation expense, as assets related to the North America autobody sheet (“ABS”) project at our Lewisport, Kentucky facility (the “North America ABS Project”) were placed into service; and

▪ a $7 million increase in interest expense resulting primarily from the additional 9½% Senior Secured Notes issued in 2017 and decreased capitalized interest.

In the first quarter of 2018, capital expenditures were $30 million as compared to $63 million in the first quarter of 2017. Expenditures related to the North America ABS Project have declined as that project nears completion. Commercial ABS shipments commenced in the fourth quarter of 2017.

As of March 31, 2018, Aleris had liquidity of approximately $243 million, which consisted of approximately $158 million of availability under our ABL Facility, $79 million of cash on hand and $6 million of cash restricted for the payment of the China Loan Facility. Liquidity does not include $20 million of benefits from the final installment of customer capacity reservation fees received early in the second quarter of 2018.

North America

North America segment income increased to $41 million in the first quarter of 2018 from $24 million in the first quarter of 2017. Segment Adjusted EBITDA increased to $34 million in the first quarter of 2018 from $23 million in the first quarter of 2017. Performance drivers for segment income and segment Adjusted EBITDA included:

▪ improved rolling margins and favorable scrap spreads increased segment Adjusted EBITDA approximately $11 million;

▪ a 4 percent increase in volumes increased segment Adjusted EBITDA approximately $3 million. Building and construction volumes increased 7 percent as a result of favorable demand and improved operating performance. Distribution volumes increased 8 percent as prior year sales were affected by a strategic build of inventory in advance of the extended planned outage at our Lewisport facility; and

▪ wage inflation and substantially higher freight costs, partially offset by productivity gains, decreased segment Adjusted EBITDA approximately $3 million.

In addition to the factors above, segment income was impacted by a $6 millionfavorable variance in metal price lag.

Europe

Europe segment income was $28 million in the first quarter of 2018 compared to $38 million in the first quarter of 2017. Segment Adjusted EBITDA was $27 million in the first quarter of 2018 compared to $37 million in the first quarter of 2017. Performance drivers for segment income and segment Adjusted EBITDA included:

▪ lower rolling margins reduced segment Adjusted EBITDA approximately $4 million. Rolling margins were affected by pricing pressure in the aerospace spot market as well as the contractual prices in our multi-year automotive and aerospace supply agreements;

▪ better operating performance drove successful working capital initiatives, which continued to reduce finished good inventory levels, but this activity resulted in unfavorable cost absorption of $5 million;

▪ a 28 percent increase in automotive volumes was offset by a weaker mix of aerospace products as well as a 9 percent decrease in overall aerospace volumes, decreasing segment Adjusted EBITDA

3

approximately $2 million. Aerospace volumes were affected by continued supply chain destocking and a weaker product and customer mix;

▪ productivity gains from improved operational stability and cost optimization more than offset inflation, increasing segment Adjusted EBITDA approximately $2 million; and

▪ the net impact of currency changes reduced segment Adjusted EBITDA approximately $1 million.

In addition to the factors above, segment income was impacted by a $1 millionfavorable variance in metal price lag.

Asia Pacific

Asia Pacific segment income and segment Adjusted EBITDA were $2 million in the first quarter of 2018 compared to $1 million in the first quarter of 2017. Performance drivers for segment income and segment Adjusted EBITDA included:

▪ an increase in volumes, including a 21 percent increase in aerospace shipments, increased segment Adjusted EBITDA approximately $2 million; and

▪ improved productivity increased segment Adjusted EBITDA approximately $1 million.

These increases were partially offset by the net impact of currency changes that reduced segment Adjusted EBITDA approximately $2 million.

Outlook

As discussed above, we estimate that segment income and Adjusted EBITDA for the second quarter of 2018 will be meaningfully higher than the second quarter of 2017 and higher than the first quarter of 2018. In addition, we continue to estimate that 2018 full year segment income and Adjusted EBITDA will be substantially higher than the prior year.

Other Recent Developments

On April 6, 2018, the U.S. Treasury Department announced that it was implementing sanctions on various Russian individuals and companies they own and control, including United Company Rusal Plc with whom we do business through its subsidiaries. On April 23, 2018, the U.S. Treasury Department issued General License 14, which extends the wind-down period and permits operations to continue with Rusal until October 23, 2018. While we expect to be able to meet our aluminum consumption requirements, we continue to evaluate the risk of temporary supply disruptions as a result of the sanctions and are evaluating alternatives, where appropriate.

Conference Call and Webcast Information

Aleris will hold a conference call and webcast on May 3, 2018 at 9:00 a.m. Eastern Time. Sean M. Stack, chairman and chief executive officer, and Eric M. Rychel, executive vice president, chief financial officer and treasurer, will host the call to discuss results.

The webcast can be accessed through the Company’s website, www.aleris.com. The conference call can be accessed by dialing 1-877-870-4263 or 1-412-317-0790 (for international callers) and asking for the “Aleris call”. A replay of the call will be posted on the Company’s website in the Investor Relations section.

Forward-Looking Statements

4

Certain statements contained in this press release are “forward-looking statements” within the meaning of the federal securities laws. Statements under headings with “Outlook” in the title and statements about our beliefs and expectations and statements containing the words “may,” “could,” “would,” “should,” “will,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “look forward to,” “intend” and similar expressions intended to connote future events and circumstances constitute forward-looking statements. Forward-looking statements include statements about, among other things, future costs and prices of commodities, production volumes, industry trends, anticipated cost savings, anticipated benefits from new products, facilities, acquisitions or divestitures, projected results of operations, achievement of production efficiencies, capacity expansions, future prices and demand for our products and estimated cash flows and sufficiency of cash flows to fund operations, capital expenditures and debt service obligations. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in or implied by any forward-looking statement. Important factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the following: (1) our ability to successfully implement our business strategy; (2) the success of past and future acquisitions or divestitures; (3) the cyclical nature of the aluminum industry, material adverse changes in the aluminum industry or our end-uses, such as global and regional supply and demand conditions for aluminum and aluminum products, and changes in our customers’ industries; (4) increases in the cost, or limited availability, of raw materials and energy; (5) our ability to enter into effective metal, energy and other commodity derivatives or arrangements with customers to manage effectively our exposure to commodity price fluctuations and changes in the pricing of metals, especially London Metal Exchange-based aluminum prices; (6) our ability to generate sufficient cash flows to fund our operations and capital expenditure requirements and to meet our debt obligations; (7) competitor pricing activity, competition of aluminum with alternative materials and the general impact of competition in the industry end-uses we serve; (8) our ability to retain the services of certain members of our management; (9) the loss of order volumes from any of our largest customers; (10) our ability to retain customers, a substantial number of whom do not have long-term contractual arrangements with us; (11) risks of investing in and conducting operations on a global basis, including political, social, economic, currency and regulatory factors; (12) variability in general economic or political conditions on a global or regional basis; (13) current environmental liabilities and the cost of compliance with and liabilities under health and safety laws; (14) labor relations (i.e., disruptions, strikes or work stoppages) and labor costs; (15) our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur; (16) our levels of indebtedness and debt service obligations, including changes in our credit ratings, material increases in our cost of borrowing or the failure of financial institutions to fulfill their commitments to us under committed facilities; (17) our ability to access credit or capital markets; (18) the possibility that we may incur additional indebtedness in the future; (19) limitations on operating our business and incurring additional indebtedness as a result of covenant restrictions under our indebtedness, and our ability to pay amounts due under our outstanding indebtedness; and (20) other factors discussed in our filings with the Securities and Exchange Commission, including the sections entitled “Risk Factors” contained therein. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether in response to new information, futures events or otherwise, except as otherwise required by law.

Non-GAAP Financial Measures

In addition to the results reported in accordance with GAAP, this press release includes information regarding certain non-GAAP financial measures. Management uses EBITDA, Adjusted EBITDA, segment Adjusted EBITDA and commercial margin (collectively, the “Non-GAAP Measures”) as performance metrics and believes these measures provide additional information commonly used by the holders of the

5

Senior Notes and parties to our ABL Facility with respect to the ongoing performance of our underlying business activities, as well as our ability to meet our future debt service, capital expenditures and working capital needs. In addition, EBITDA with certain adjustments is a component of certain covenants under the indentures governing the Senior Notes. Adjusted EBITDA, including the impact of metal price lag, is a component of certain financial covenants under the credit agreement governing the ABL Facility. Management also uses commercial margin as a performance metric and believes that it provides useful information regarding the performance of our segments because it measures the price at which we sell our aluminum products above the hedged cost of the metal and the effects of metal price lag, thereby reflecting the value-added components of our commercial activities independent of aluminum prices which we cannot control.

Our EBITDA calculations represent net income and loss attributable to Aleris Corporation before interest income and expense, provision for and benefit from income taxes, depreciation and amortization and income and loss from discontinued operations, net of tax. Adjusted EBITDA is defined as EBITDA excluding metal price lag, unrealized gains and losses on derivative financial instruments, restructuring charges, currency exchange gains and losses on debt, stock-based compensation expense, start-up costs, loss on extinguishment of debt, impairment of amounts held in escrow related to the sale of the recycling business and certain other gains and losses. Segment Adjusted EBITDA represents Adjusted EBITDA on a per segment basis. EBITDA as defined in the indentures governing the Senior Notes also limits the amount of adjustments for cost savings, operational improvement and synergies for the purpose of determining our compliance with such covenants. Adjusted EBITDA as defined under the ABL Facility also limits the amount of adjustments for restructuring charges and requires additional adjustments be made if certain annual pension funding levels are exceeded. Commercial margin represents revenues less the hedged cost of metal and the effects of metal price lag.

The Non-GAAP Measures, as we use them, may not be comparable to similarly titled measures used by other companies. We calculate the Non-GAAP Financial Measures by eliminating the impact of a number of items we do not consider indicative of our ongoing operating performance, and certain other items. You are encouraged to evaluate each adjustment and the reasons we consider it appropriate for supplemental analysis. However, the Non-GAAP Financial Measures are not financial measurements recognized under GAAP, and when analyzing our operating performance, investors should use the Non-GAAP Financial Measures in addition to, and not as an alternative for, net income and loss attributable to Aleris Corporation, operating income and loss, or any other performance measure derived in accordance with GAAP, or in addition to, and not as an alternative for, cash flow from operating activities as a measure of our liquidity. The Non-GAAP Financial Measures have limitations as analytical tools, and they should not be considered in isolation, or as a substitute for, or superior to, our measures of financial performance prepared in accordance with GAAP.

Website Posting

We use our investor website (investor.aleris.com) as a channel of distribution of Company information. The information we post through this channel may be deemed material. Accordingly, investors should monitor this channel, in addition to following our press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The content of our website is not, however, a part of this press release.

6

About Aleris

Aleris is a privately held, global leader in aluminum rolled products production. Headquartered in Cleveland, Ohio, Aleris operates 13 production facilities in North America, Europe and Asia. For more information, visit www.aleris.com.

……………………………………………………………………………………………………………

The information disclosed in this press release is believed by Aleris to be accurate as of the date hereof. Aleris expressly disclaims any duty to update the information contained in this press release. Persons engaging in any transactions with Aleris or in Aleris’s securities are cautioned that there may exist other material information regarding Aleris that is not publicly available.

Investor Contact:Eric M. Rychel

Phone: 216-910-3229

Media Contact:Shannon Bennett

Phone: 216-910-3664

7

Aleris Corporation

Consolidated Statements of Operations

(unaudited)

(in millions)

	For the three months ended
	March 31, 2018			March 31, 2017
Revenues	$	802.3		$	674.2
Cost of sales	739.8			588.6
Gross profit	62.5			85.6
Selling, general and administrative expenses	50.6			52.9
Restructuring charges	0.9			0.4
(Gains) losses on derivative financial instruments	(33.9		)	28.2
Other operating expense, net	0.7			1.0
Operating income	44.2			3.1
Interest expense, net	33.8			27.1
Other expense, net	0.4			0.5
Income (loss) before income taxes	10.0			(24.5		)
Provision for income taxes	5.4			10.7
Net income (loss)	$	4.6		$	(35.2	)

8

Aleris Corporation

Operating and Segment Information

(unaudited)

(in millions)

	For the three months ended
	March 31, 2018			March 31, 2017
Segment income:
North America	$	41.5		$	24.2
Europe	28.3			38.0
Asia Pacific	2.3			1.4
Total segment income	72.1			63.6
Depreciation and amortization	(34.7		)	(25.7		)
Other corporate general and administrative expenses	(11.2		)	(12.4		)
Restructuring charges	(0.9		)	(0.4		)
Interest expense, net	(33.8		)	(27.1		)
Unallocated gains (losses) on derivative financial instruments	33.7			(7.7		)
Unallocated currency exchange gains (losses)	1.2			(0.1		)
Start-up costs	(16.0		)	(14.5		)
Other expense, net	(0.4		)	(0.2		)
Income (loss) before income taxes	$	10.0		$	(24.5	)

9

Aleris Corporation

Operating and Segment Information

(unaudited)

(Dollars in millions, except per ton measures, metric tons in thousands)

	For the three months ended
	March 31, 2018			March 31, 2017
Metric tons of finished product shipped:
North America	119.5			114.5
Europe	85.4			79.7
Asia Pacific	6.4			5.5
Intra-entity shipments	(2.0		)	(1.4		)
Total metric tons of finished product shipped	209.3			198.3
Revenues:
North America	$	414.6		$	351.6
Europe	365.1			309.0
Asia Pacific	31.6			24.2
Intra-entity revenues	(9.0		)	(10.6		)
Consolidated revenues	$	802.3		$	674.2
Commercial margin(1):
North America	$	162.3		$	143.3
Europe	150.3			140.2
Asia Pacific	12.9			10.5
Total commercial margin(2)	$	325.4		$	294.0
Commercial margin per metric ton shipped:
North America	$	1,357.6		$	1,251.1
Europe	1,760.3			1,759.7
Asia Pacific	1,997.2			1,907.2
Segment Adjusted EBITDA(1):
North America(3)	$	34.1		$	23.3
Europe	26.9			37.3
Asia Pacific	2.1			0.9
Corporate	(9.5		)	(9.7		)
Total Adjusted EBITDA	$	53.6		$	51.8
Segment Adjusted EBITDA per metric ton shipped:
North America	$	285.1		$	203.2
Europe	315.1			467.8
Asia Pacific	333.6			170.4
Aleris Corporation	256.3			261.4

(1) See the following tables for a reconciliation to the applicable GAAP measure.

(2) Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table.

(3) Segment Adjusted EBITDA excludes start-up operating expenses and losses incurred during the start-up period. For the three months ended March 31, 2018 and 2017, start-up costs were $14.5 million and $13.0 million, respectively.

10

Aleris Corporation

Consolidated Balance Sheet

(unaudited)

(in millions, except share and per share data)

ASSETS	March 31, 2018			December 31, 2017
Current Assets
Cash and cash equivalents	$	79.1		$	102.4
Accounts receivable, net	364.2			245.7
Inventories	675.7			631.2
Prepaid expenses and other current assets	80.6			36.1
Total Current Assets	1,199.6			1,015.4
Property, plant and equipment, net	1,470.5			1,470.9
Intangible assets, net	34.1			34.7
Deferred income taxes	69.5			70.7
Other long-term assets	55.1			52.7
Total Assets	$	2,828.8		$	2,644.4
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	341.6		$	299.2
Accrued liabilities	199.9			197.4
Current portion of long-term debt	10.3			9.1
Total Current Liabilities	551.8			505.7
Long-term debt	1,819.1			1,771.4
Deferred revenue	74.0			17.0
Deferred income taxes	6.1			4.0
Accrued pension benefits	173.5			170.2
Accrued postretirement benefits	33.8			34.3
Other long-term liabilities	49.6			49.1
Total Long-Term Liabilities	2,156.1			2,046.0
Stockholders’ Equity
Common stock; par value $.01; 45,000,000 shares authorized; 32,219,528 and 32,001,318 shares issued at March 31, 2018 and December 31, 2017, respectively	0.3			0.3
Preferred stock; par value $.01; 1,000,000 shares authorized; none issued	—			—
Additional paid-in capital	436.6			436.3
Retained deficit	(196.0		)	(203.4		)
Accumulated other comprehensive loss	(120.0		)	(140.5		)
Total Equity	120.9			92.7
Total Liabilities and Equity	$	2,828.8		$	2,644.4

11

Aleris Corporation

Consolidated Statements of Cash Flows

(unaudited)

(in millions)

	For the three months ended
	March 31, 2018			March 31, 2017
Operating activities
Net income (loss)	$	4.6		$	(35.2	)
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Depreciation and amortization	34.7			25.7
Provision for deferred income taxes	1.6			6.1
Stock-based compensation expense	0.3			0.6
Unrealized (gains) losses on derivative financial instruments	(33.7		)	7.8
Amortization of debt issuance costs	0.7			0.8
Other	(0.4		)	1.0
Changes in operating assets and liabilities:
Change in accounts receivable	(84.4		)	(50.4		)
Change in inventories	(60.9		)	(66.9		)
Change in other assets	(18.4		)	(0.6		)
Change in accounts payable	44.9			43.8
Change in accrued and other liabilities	76.1			28.7
Net cash used by operating activities	(34.9		)	(38.6		)
Investing activities
Payments for property, plant and equipment	(30.1		)	(62.6		)
Other	(0.2		)	(0.4		)
Net cash used by investing activities	(30.3		)	(63.0		)
Financing activities
Proceeds from revolving credit facilities	133.9			159.5
Payments on revolving credit facilities	(90.0		)	(294.5		)
Proceeds from senior secured notes, inclusive of premiums and discounts	—			263.8
Net payments on other long-term debt	(3.8		)	(2.3		)
Debt issuance costs	—			(1.8		)
Other	—			(1.2		)
Net cash provided by financing activities	40.1			123.5
Effect of exchange rate differences on cash, cash equivalents and restricted cash	1.9			0.6
Net (decrease) increase in cash, cash equivalents and restricted cash	(23.2		)	22.5
Cash, cash equivalents and restricted cash at beginning of period	108.0			55.6
Cash, cash equivalents and restricted cash at end of period	$	84.8		$	78.1
Cash and cash equivalents	$	79.1		$	74.6
Restricted cash (included in “Prepaid expenses and other current assets”)	5.7			3.5
Cash, cash equivalents and restricted cash	$	84.8		$	78.1

12

Aleris Corporation

Reconciliation of Adjusted EBITDA to

Net Income (Loss) and Cash Flows Used by Operating Activities

(unaudited)

(in millions)

	For the three months ended
	March 31, 2018			March 31, 2017
Adjusted EBITDA	$	53.6		$	51.8
Unrealized gains (losses) on derivative financial instruments	33.7			(7.8		)
Restructuring charges	(0.9		)	(0.4		)
Unallocated currency exchange gains on debt	1.1			—
Stock-based compensation expense	(0.3		)	(0.6		)
Start-up costs	(16.0		)	(14.5		)
Favorable metal price lag	9.0			2.1
Other	(1.7		)	(2.3		)
EBITDA	78.5			28.3
Interest expense, net	(33.8		)	(27.1		)
Provision for income taxes	(5.4		)	(10.7		)
Depreciation and amortization	(34.7		)	(25.7		)
Net income (loss)	4.6			(35.2		)
Depreciation and amortization	34.7			25.7
Provision for deferred income taxes	1.6			6.1
Stock-based compensation expense	0.3			0.6
Unrealized (gains) losses on derivative financial instruments	(33.7		)	7.8
Amortization of debt issuance costs	0.7			0.8
Other	(0.4		)	1.0
Change in operating assets and liabilities:
Change in accounts receivable	(84.4		)	(50.4		)
Change in inventories	(60.9		)	(66.9		)
Change in other assets	(18.4		)	(0.6		)
Change in accounts payable	44.9			43.8
Change in accrued and other liabilities	76.1			28.7
Net cash used by operating activities	$	(34.9	)	$	(38.6	)

13

Aleris Corporation

Reconciliation of Segment Income to

Segment Adjusted EBITDA

(unaudited)

(in millions)

	For the three months ended
	March 31, 2018			March 31, 2017
North America
Segment income	$	41.5		$	24.2
Favorable metal price lag	(7.4		)	(0.9		)
Segment Adjusted EBITDA(1)	$	34.1		$	23.3
Europe
Segment income	$	28.3		$	38.0
Favorable metal price lag	(1.4		)	(0.7		)
Segment Adjusted EBITDA(1)	$	26.9		$	37.3
Asia Pacific
Segment income	$	2.3		$	1.4
Favorable metal price lag	(0.2		)	(0.5		)
Segment Adjusted EBITDA(1)	$	2.1		$	0.9

(1) Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table.

14

Aleris Corporation

Reconciliation of Revenues to

Commercial Margin

(unaudited)

(in millions)

	For the three months ended
	March 31, 2018			March 31, 2017
North America
Revenues	$	414.6		$	351.6
Hedged cost of metal	(244.9		)	(207.4		)
Favorable metal price lag	(7.4		)	(0.9		)
Commercial margin	$	162.3		$	143.3
Europe
Revenues	$	365.1		$	309.0
Hedged cost of metal	(213.4		)	(168.1		)
Favorable metal price lag	(1.4		)	(0.7		)
Commercial margin	$	150.3		$	140.2
Asia Pacific
Revenues	$	31.6		$	24.2
Hedged cost of metal	(18.5		)	(13.2		)
Favorable metal price lag	(0.2		)	(0.5		)
Commercial margin	$	12.9		$	10.5
Aleris Corporation
Revenues	$	802.3		$	674.2
Hedged cost of metal	(467.9		)	(378.1		)
Favorable metal price lag	(9.0		)	(2.1		)
Commercial margin	$	325.4		$	294.0

15

EX-99.2

EARNINGS PRESENTATION First Quarter 2018 Aleris Corporation May 3, 2018

2 Forward-Looking and Other Information IMPORTANT INFORMATION This information is current only as of its date and may have changed. We undertake no obligation to update this information in light of new information, future events or otherwise. This information contains certain forecasts and other forward looking information concerning our business, prospects, financial condition and results of operations, and we are not making any representation or warranty that this information is accurate or complete. See “Forward-Looking Information” below. BASIS OF PRESENTATION We are a direct wholly owned subsidiary of Aleris Corporation. Aleris Corporation currently conducts its business and operations through us and our consolidated subsidiaries. As used in this presentation, unless otherwise specified or the context otherwise requires, “Aleris,” “we,” “our,” “us,” “ and the “Company” refer to Aleris International, Inc. and its consolidated subsidiaries. Notwithstanding the foregoing, with respect to the historical financial information and other data presented in this presentation, unless otherwise specified or the context requires, “Aleris,” “we,” “our,” “us,” and the “Company’ refer to Aleris Corporation. We completed the sale of our recycling and specification alloys and extrusions businesses in the first quarter of 2015. We have reported these businesses as discontinued operations for all periods presented, and reclassified the results of operations of these businesses as discontinued operations. Except as otherwise indicated, the discussion of the Company’s business and financial information throughout this presentation refers to the Company’s continuing operations and the financial position and results of operations of its continuing operations. FORWARD-LOOKING INFORMATION Certain statements contained in this presentation are “forward-looking statements” within the meaning of the federal securities laws. Statements under headings with “Outlook” in the title and statements about our beliefs and expectations and statements containing the words “may,” “could,” “would,” “should,” “will,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “look forward to,” “intend” and similar expressions intended to connote future events and circumstances constitute forward-looking statements. Forward-looking statements include statements about, among other things, future costs and prices of commodities, production volumes, industry trends, anticipated cost savings, anticipated benefits from new products, facilities, acquisitions or divestitures, projected results of operations, achievement of production efficiencies, capacity expansions, future prices and demand for our products and estimated cash flows and sufficiency of cash flows to fund operations, capital expenditures and debt service obligations. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in or implied by any forward-looking statement. Important factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the following: (1) our ability to successfully implement our business strategy; (2) the success of past and future acquisitions or divestitures; (3) the cyclical nature of the aluminum industry, material adverse changes in the aluminum industry or our end-uses, such as global and regional supply and demand conditions for aluminum and aluminum products, and changes in our customers’ industries; (4) increases in the cost, or limited availability, of raw materials and energy; (5) our ability to enter into effective metal, energy and other commodity derivatives or arrangements with customers to manage effectively our exposure to commodity price fluctuations and changes in the pricing of metals, especially London Metal Exchange-based aluminum prices; (6) our ability to generate sufficient cash flows to fund our operations and capital expenditure requirements and to meet our debt obligations; (7) competitor pricing activity, competition of aluminum with alternative materials and the general impact of competition in the industry end-uses we serve; (8) our ability to retain the services of certain members of our management; (9) the loss of order volumes from any of our largest customers; (10) our ability to retain customers, a substantial number of whom do not have long-term contractual arrangements with us; (11) risks of investing in and conducting operations on a global basis, including political, social, economic, currency and regulatory factors; (12) variability in general economic or political conditions on a global or regional basis; (13) current environmental liabilities and the cost of compliance with and liabilities under health and safety laws; (14) labor relations (i.e., disruptions, strikes or work stoppages) and labor costs; (15) our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur; (16) our levels of indebtedness and debt service obligations, including changes in our credit ratings, material increases in our cost of borrowing or the failure of financial institutions to fulfill their commitments to us under committed facilities; (17) our ability to access credit or capital markets; (18) the possibility that we may incur additional indebtedness in the future; (19) limitations on operating our business and incurring additional indebtedness as a result of covenant restrictions under our indebtedness, and our ability to pay amounts due under our outstanding indebtedness; and (20) other factors discussed in our filings with the Securities and Exchange Commission, including the sections entitled “Risk Factors” contained therein. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether in response to new information, futures events or otherwise, except as otherwise required by law. NON-GAAP INFORMATION The non-GAAP financial measures contained in this presentation (including, without limitation, EBITDA, Adjusted EBITDA, commercial margin, and variations thereof) are not measures of financial performance calculated in accordance with U.S. GAAP and should not be considered as alternatives to net income and loss attributable to Aleris Corporation or any other performance measure derived in accordance with GAAP or as alternatives to cash flows from operating activities as a measure of our liquidity. Non- GAAP measures have limitations as analytical tools and should be considered in addition to, not in isolation or as a substitute for, or as superior to, our measures of financial performance prepared in accordance with GAAP. Management believes that certain non-GAAP financial measures may provide investors with additional meaningful comparisons between current results and results in prior periods. Management uses non-GAAP financial measures as performance metrics and believes these measures provide additional information commonly used by the holders of our senior debt securities and parties to the ABL Facility with respect to the ongoing performance of our underlying business activities, as well as our ability to meet our future debt service, capital expenditure and working capital needs. We calculate our non-GAAP financial measures by eliminating the impact of a number of items we do not consider indicative of our ongoing operating performance, and certain other items. You are encouraged to evaluate each adjustment and the reasons we consider it appropriate for supplemental analysis. See “Appendix.” INDUSTRY INFORMATION Information regarding market and industry statistics contained in this presentation is based on information from third party sources as well as estimates prepared by us using certain assumptions and our knowledge of these industries. Our estimates, in particular as they relate to our general expectations concerning the aluminum industry, involve risks and uncertainties and are subject to changes based on various factors, including those discussed under “Risk Factors” in our filings with the Securities and Exchange Commission. WEBSITE POSTING We use our investor website (investor.aleris.com) as a channel of distribution of Company information. The information we post through this channel may be deemed material. Accordingly, investors should monitor this channel, in addition to following our press releases, Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts. The content of our website is not, however, a part of this presentation.

3 First Quarter Overview  Solid underlying performance with 1Q18 Adjusted EBITDA of $54 million – Strong B&C and global automotive demand – Improved operational performance and productivity – Higher rolling margins and favorable scrap spreads in North America – Increased automotive volumes in Europe unable to offset aerospace destocking headwinds and weaker mix  Full $80 million capacity reservation fee received; final $20 million received early in the second quarter of 2018  North American ABS project on-track, CALP I ramping up commercial shipments, CALP II commissioning well underway 3% year over year Adjusted EBITDA growth 1Q Adjusted EBITDA ($M) $52 $54 1Q181Q17 +3% Adjusted EBITDA per ton ($/t) $261 $256 1Q181Q17

4 Key Global End Uses Aleris Volume Drivers  Demand remains favorable, driven by strong automotive growth  All major customers under 2018 commitments  HEX volume upside limited by available capacity until 2019  Continued benefits from strong Europe demand and less European capacity reserved to support North America in 2018  Growth in North America driven by commercial ABS shipments  Customer commitments in place for 2H18 ramp up Heat Exchanger Automotive  Continued industry destocking, unfavorable product mix and weaker spot pricing affected results  Strategic Zhenjiang mill continues to increase aerospace volumes  Long-term fundamentals and backlogs remain robust  New multi-year supply agreements in place with all major OEMs  Continue to expect return to volume growth in 2H18 Aerospace 1Q YoY Growth 1% 28% (2%)

5  Favorable industry demand trends with single family housing starts  Strong operational performance from Aleris B&C facilities N.A. Building & Construction  Cyclical demand remains low  Uptick in demand underway N.A. Truck Trailer  Focus on value-added product mix  Ongoing uncertainty due to elevated LME prices  Solid economic fundamentals EU Regional Commercial Plate & Sheet  Prior year sales affected by strategic build of inventory in advance of Lewisport’s outage  Overall customer demand environment remains favorable N.A. Distribution 7% 8% (4%) 2% 1Q YoY Growth Key Regional End Uses Aleris Volume Drivers

6 Adjusted EBITDA Bridges $52 $54 $10 $7 30 35 40 45 50 55 60 Base InflationCommodity Inflation ($4) ProductivityPrice / Metal Spreads 1Q18 ($3) ($6) Currency/ Translation/ Other ($2) 1Q17 Volume / Mix 1Q18 vs. 1Q17 ($M)

7 North America Segment Adjusted EBITDA ($M)Volume (kT) 1Q18 Performance1Q Adjusted EBITDA Bridge ($M) 115 120 4% 1Q17 1Q18 $23 $34 1Q17 1Q18 Adj. EBITDA / ton $203 $285  Higher B&C, distribution and automotive volumes partially offset by weaker transportation volumes; better overall product mix  Favorable scrap spreads resulting from rising aluminum prices, improved scrap availability and strategic metal purchasing  Improved rolling margins, better Adjusted EBITDA/ton  Productivity gains from improved operational performance partially offset base wage inflation and substantially higher freight costs $3 $11 $3 $34 $23 0 5 10 15 20 25 30 35 40 1Q18ProductivityBase Inflation ($3) ($3) Price / Metal Spreads Volume / Mix Commodity Inflation 1Q17

8 $0.95 $0.80 $0.15 $0.75 $1.10 $1.05 $1.15 $0.25 $0.20 $0.85 $0.90 $1.20 $1.00 $0.70 $0.35 $0.30 $0.40 $0.45 Sep 2016 Mar 2015 Dec 2014 Mar 2017 Jun 2015 Dec 2015 Sep 2015 Sep 2017 Jun 2017 Jun 2016 Dec 2016 Dec 2017 Mar 2016 Mar 2018 Metal Update Ongoing historically high metal spreads and favorable scrap trends Weighted Painted Siding, Mixed Low Copper, Sheet SpreadP1020 (left axis) 1Platts, Aleris Management Analysis, April 2018

9 Europe Segment Adjusted EBITDA ($M)Volume (kT) 1Q18 Performance1Q Adjusted EBITDA Bridge ($M) 80 85 1Q17 1Q18 7% $37 $27 1Q17 1Q18 Adj. EBITDA / ton $468 $315  Unfavorable aerospace mix and continued aerospace destocking, partially offset by increased automotive volumes  Unfavorable cost absorption resulting from working capital optimization initiatives impacted volume/mix by $5 million  Lower rolling margins from lower spot prices in aerospace and unfavorable product mix with customers; lower automotive rolling margins more than offset by better volumes  Improved operational stability and cost optimization more than offset inflation  FX headwinds continue to persist with weaker U.S. dollar $27 $6 $37 15 20 25 30 35 40 Currency/ Translation/ Other ($1) Base Inflation ($3) Commodity Inflation 1Q17 Productivity 1Q18Price / Metal Spreads ($4) ($7) ($1) Volume / Mix

10 Asia Pacific Segment Adjusted EBITDA ($M)Volume (kT) 1Q18 Performance1Q Adjusted EBITDA Bridge ($M) 5 6 17% 4Q16 4Q17 $1 $2 1Q181Q17 Adj. EBITDA / ton $170 $334  Strong growth in aerospace volumes and growth in commercial plate  Rolling margins stable after pressure in 2017  Operational performance reflected in volume growth and favorable productivity  Negative impact from FX with weaker U.S. dollar $1 $2 $2 $1 0 2 4 1Q17 Currency/ Translation/ Other Commodity Inflation $0 Price / Metal Spreads ProductivityBase Inflation $0 Volume / Mix 1Q18 ($2)$0

11 Cash Flow and LTM Working Capital Balancing ABS project inventory needs and cash flow Total LTM Working Capital Days1Net Cash Flow ($M) 1Q17 1Q18 Cash Provided / (Used) by Operating Activities ($39) ($35) Capital Expenditures (63) (30) Net Cash Before Financing ($102) ($65) 71 78 78 22% 19% 22% 50 55 60 65 70 75 80 1Q1820172016 % of SalesDays  Higher LME increasing working capital investment  Additional inventory for ABS commissioning/qualification  Increasing operational stability in Europe driving improvements

12 Capital Structure & Liquidity Overview CapEx continuing to ramp down, all capacity reservation fees now received Liquidity Summary ($M)Capital Expenditures Summary ($M)1 Capital Structure ($M) $82 $96 $88 $74 $53 $14 $201 $276 $148 $23 $107 2016 $358 1Q18 $30 $6 2018E $125 - $1402 2017 $208 $7 $8 2015 $298 $10 $188 $121 20142013 $1 North America ABS Project & Other UpgradesOther Growth Maintenance 1Excludes discontinued operations CapEx of $50M, $43M, $15M in 2013-2015 2Guidance does not include capitalized interest 3Includes $6M of restricted cash for China Loan Facility payments 4Does not include benefit of $20M of customer capacity fees received early in 2Q 2018 5Amounts exclude applicable premiums and discounts 6Other excludes $45M of exchangeable notes 7See prior SEC filing for applicable reconciliations to GAAP financial measures 8Excludes Non-Recourse China Loan Facilities 9Secured debt includes outstanding ABL Facility balance and 2021 Secured Notes Note: Certain amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in these charts and tables 3/31/2018 Cash and Restricted Cash3 $85 ABL 366 Notes5 1,240 Non-Recourse China Loan Facilities5 173 Other5,6 9 Net Debt $1,703 LTM Adjusted EBITDA7 $202 Net Debt / LTM Adj. EBITDA 8.4x Net Recourse Debt8 / LTM Adj. EBITDA 7.5x Net Secured Debt9 / LTM Adj. EBITDA 5.8x 3/31/2018 Cash and Restricted Cash3 $85 Availability under ABL Facility 158 Liquidity $2434

13 Outlook  Second quarter segment income and Adjusted EBITDA expected to be meaningfully higher than the second quarter of 2017 from anticipated increases in global automotive and North America building and construction and distribution volumes, as well as favorable metal spreads  Continue to expect that full year 2018 segment income and Adjusted EBITDA will be substantially higher than prior year  Commercial shipments from new North America automotive assets are expected to show significant ramp up in second half of 2018 based on committed volumes  Global aerospace volumes expected to benefit from higher aircraft production rates and new global, multi-year customer contracts after inventory destocking subsides, anticipated in the second half of the year  European automotive volume expected to benefit from new model launches  Favorable year-over-year scrap spreads expected in North America, particularly through the second quarter of 2018  A weaker U.S. dollar will negatively impact results in 2018

14 APPENDIX

15 1Q Adjusted EBITDA Reconciliation ($M) 2018 2017 Adjusted EBITDA 53.6$ 51.8$ Unrealized gains (losses) on derivative financial instruments 33.7 (7.8) Restructuring charges (0.9) (0.4) Unallocated currency exchange gains on debt 1.1 — Stock-based compensation expense (0.3) (0.6) Start-up costs (16.0) (14.5) Favorable metal price lag 9.0 2.1 Other (1.7) (2.3) EBITDA 78.5$ 28.3$ Interest expense, net (33.8) (27.1) Provision for income taxes (5.4) (10.7) Depreciation and amortization (34.7) (25.7) Net income (loss) 4.6$ (35.2)$ For the three months ended March 31,

16 1Q Adjusted EBITDA Reconciliation by Segment ($M) 1Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table 2018 2017 North America Segment income 41.5$ 24.2$ Favorable metal price lag (7.4) (0.9) Segment Adjusted EBITDA1 34.1$ 23.3$ Europe Segment income 28.3$ 38.0$ Favorable metal price lag (1.4) (0.7) Segment Adjusted EBITDA1 26.9$ 37.3$ Asia Pacific Segment income 2.3$ 1.4$ Favorable metal price lag (0.2) (0.5) Segment Adjusted EBITDA1 2.1$ 0.9$ For the three months ended March 31,

17 2018 2017 Metric tons of finished product shipped: North America 119.5 114.5 Europe 85.4 79.7 Asia Pacific 6.4 5.5 Intra-entity shipments (2.0) (1.4) Total metric tons of finished product shipped 209.3 198.3 Segment Adjusted EBITDA:1 North America2 34.1$ 23.3$ Europe 26.9 37.3 Asia Pacific 2.1 0.9 Corporate (9.5) (9.7) Total Adjusted EBITDA 53.6$ 51.8$ Segment Adjusted EBITDA per metric ton shipped: North America 285.1$ 203.2$ Europe 315.1$ 467.8$ Asia Pacific 333.6$ 170.4$ Aleris Corporation 256.3$ 261.4$ For the three months ended March 31, 1Q Adjusted EBITDA Per Ton Reconciliation 1See prior slides for a reconciliation to the applicable GAAP financial measures 2Segment Adjusted EBITDA excludes start-up operating expenses and losses incurred during the start-up period. For the three months ended March 31, 2018 and 2017, start-up costs were $14.5 million and $13.0 million, respectively ($M)

18 Metal Hedging Practices Robust risk management discipline minimizes commodity price exposure Risk Mitigation Strategy Impact  LME and regional premium volatility (inventory exposure)  Forward price sales  Pass through pricing and tolling  Minimize inventory levels  Sell 100% of open inventory forward  Match sales with physical purchases or LME forwards  Attempt to minimize LT fixed price sales  Lowers margin volatility  Minimizes earnings impact  Risk limited to turn of inventory (“metal lag”)  Locks in rolling margin  Reduces multiyear dated derivatives Adjusted EBITDA vs. Metal Price Lag 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017 4Q 2017 1Q 2018 Metal price lag impact on gross profit $6 $8 $8 $22 $8 ($5) $16 $10 (+) Realized (losses) / gains on metal derivatives (9) (9) (5) (19) (12) 4 (19) (1) Favorable / (unfavorable) metal price lag net of realized derivative gains / losses ($3) ($1) $4 $2 ($5) ($1) ($3) $9 Adj. EBITDA including metal lag $61 $52 $47 $54 $62 $45 $34 $63 (–) Income / (expense) from metal price lag (3) (1) 4 2 (5) (1) (3) 9 Adj. EBITDA as reported $65 $53 $43 $52 $66 $46 $37 $54