Noranda Aluminum (NOR) is attractive given the superior company-specific qualities and recently improving aluminum supply/demand situation. Investors earn a high yield while waiting for the expected turnaround.
NOR is a vertically integrated producer of value-added aluminum products. NOR operates a primary metals (upstream) business and a rolled products (downstream) business.
The upstream business is one of the largest U.S. producers of primary aluminum and includes the following segments:
- The primary aluminum segment produces value-added products in several forms such as billet, rod, high purity sow and foundry. In 2012, NOR accounted for ~13% of total U.S. primary aluminum production according to CRU.
- The alumina refinery converts bauxite into alumina (the principal raw material used