HANNIBAL - Ormet Corp. recorded a $5 million net profit for the second quarter of 2010, a $700,000 increase from the same period last year - and a $4.8 million increase from the first quarter of this year.
With about 800 union workers and several more in management positions, Ormet continues to be a major employer in both Monroe County and the Upper Ohio Valley.
Though the profits for the second quarter are up, the entire first half of 2010 left Ormet with only a $5.2 million profit, roughly $8.7 million less than last year. These results, however, include $3.2 million for a legal dispute.
The company spent $3.3 million on capital projects during the first six months of 2010, including $2.9 million to reline 38 pots used to manufacture the aluminum.
With Ormet's agreement to purchase a carbon anode facility in Mead, Wash., the company may be positioning itself for a strong future. The current purchase agreement has been extended until Oct. 25 to conduct more due diligence regarding the deal.
Ormet President and Chief Executive Officer Mike Tanchuk said via news release, "We made further progress with a sound second quarter."
"Our focus continues to be on securing a cost effective anode supply and looking at growth opportunities while we improve operations," Tanchuk said. "We are essentially prepriced with metal for the rest of the year and will look for market opportunities to price metal going forward."
In summer 2009, Ormet told the then 982 employees - 833 hourly and 149 salary - they would likely lose their jobs. A Worker Adjustment and Retraining Notification notice signed by Ormet Vice President of Human Resources Lisa Riedel stated the first round of job cuts would come on Sept. 26, with the second round to come Oct. 11.
Ormet officials later said the company would continue operating with no more than 100 layoffs.
