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What: Noranda Aluminum Holding Corp.
So what: Higher prices and shipment volumes contributed to sales growth of 50% year-over-year. Earnings also benefited from getting a new facility fully operational and from productivity improvement and cost reduction initiatives.
Now what: Management did not offer specific guidance but stated it expects the benefits of higher prices and fully operational integrated upstream assets throughout 2011 to be only partially offset by higher costs. These comments provide basis for some confidence in the 2011 consensus EPS estimate of $1.52. At a forward P/E ratio of 11.5, Noranda's large discount to the aluminum industry's 14.2 ratio appears attractive.
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Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.