The Republican-controlled Senate narrowly advanced a bill to end Donald Trump’s tariffs on Canada, highlighting GOP divisions over the duties https://t.co/s3nmuIyGkv ...

JUST IN: 🇺🇸 Fed Chair Jerome Powell says tariffs are pushing up prices of goods. ...

JOE: COUNTING DOWN TO THE FED AND MEETING OF THE MINDS. WE APPROACH THE FED’S INTEREST RATES AND PRESIDENT TRUMP MEETING WITH PRESIDENT XI. WE WILL GET AN UPDATE FROM SOUTH KOREA AS HE MAX HAS WAY THROUGH THE SUMMIT AND WE WILL HAVE A MECHANICAL PANEL AND BY THE TIME THIS HOUR IS DONE WE WILL HAVE SPECIAL COVERAGE ON WASHINGTON.WE HAVE THE LATEST ON THE TRADE AS WE GET SET FOR AN INTEREST RATE CUT. >> YOU ARE RIGHT ON THAT. ONE HOUR FROM NOW WE HAVE YOU COVERED ON BLOOMBERG TELEVISION AND RADIO WITH MICHAEL ...

Financial Data and Key Metrics Changes - Shipments increased by 6% to 373,000 tons compared to Q3 2024, driven by higher shipments across all operating segments [7] - Revenue rose by 20% to $2.2 billion compared to Q3 2024, attributed to higher shipments and increased revenue per tonne, including higher metal prices [7] - Net income surged to $88 million from $8 million in Q3 last year, primarily due to higher gross profit [8] - Adjusted EBITDA increased by 85% to $235 million, with a record adjusted EBITDA of $196 million when excluding the impact of metal price lag [8][9] - Free cash flow was strong at $30 million for the quarter [8] Business Line Data and Key Metrics Changes - A&T segment adjusted EBITDA rose by 67% to $90 million, with TID shipments up 16% but aerospace shipments down 9% [13][14] - Packaging segment adjusted EBITDA increased by 14% to $82 million, with packaging shipments up 11% despite a 13% decrease in automotive shipments [15] - AS&I segment adjusted EBITDA skyrocketed by 371% to $33 million, with shipments up 40% despite a 7% decline in automotive shipments [16] Market Data and Key Metrics Changes - Aerospace market shows record backlogs and stable demand, with major OEMs increasing build rates [24] - Packaging demand remains healthy in North America and Europe, with long-term growth expected [25] - Automotive production in Europe remains below pre-COVID levels, with weak demand particularly in luxury and electric vehicle segments [27] Company Strategy and Development Direction - The company is focused on high value-added products, enhancing customer connectivity, and optimizing margins [23] - Continued emphasis on cost control and free cash flow generation amid uncertain economic conditions [9][30] - Long-term targets include adjusted EBITDA of $900 million and free cash flow of $300 million by 2028 [31] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the long-term fundamentals driving aerospace demand despite current challenges [24] - The company is proactively managing its business in light of tariff impacts and market uncertainties [30] - There is a belief that the current trade policies will be a net positive for the company [10][11] Other Important Information - The company completed a divestment of its Nanjing Automotive Structures plant during the quarter [9] - Leadership transition is planned, with Ingrid Joerg set to become CEO in 2026 [5][6] Q&A Session Summary Question: Impact of scrap spread changes - Management discussed the significant fluctuations in scrap spreads, indicating a potential positive impact in future quarters [35][39] Question: Aerospace margin modeling - Management highlighted the strong margin profile in aerospace and the importance of their diverse product portfolio [46][54] Question: Drivers for 2025 guidance - Management provided insights into customer compensation, accounting adjustments, and the impact of scrap spreads on guidance [60][64] Question: Recovery trajectory in aerospace - Management expressed optimism about a faster recovery in the aerospace supply chain than previously anticipated [67][70] Question: Broader European market outlook - Management noted mixed signals in the European market, with some sectors performing well while others remain weak [78][81]

Government Shutdown & Political Strategy - The program will not cover Donald Trump's potential third term, focusing instead on the issues he is trying to distract from, such as the Epstein files and government shutdown [1] - Speaker Mike Johnson fears public talk of a third term for Donald Trump, believing it hurts Republicans' chances of reelection to the House of Representatives [1] - House Republicans have been given a long vacation during the government shutdown, now in its 28th day [1] - Republicans are accused of weaponizing hunger by blocking funding for food stamps (Supplemental Nutrition Assistance Program - SNAP), which affects 40% children [2] Healthcare Crisis & Policy - A Republican healthcare crisis is looming, with potential healthcare costs skyrocketing for millions of Americans [2] - There is no Republican healthcare plan in Congress, and Republicans have repeatedly tried to repeal the Affordable Care Act [2][5] - A $536 billion cut to Medicare is possible if Congress doesn't act due to the "one big ugly bill" [5] Tariffs & Trade - A majority of US senators, including five Republicans, voted against Donald Trump's tariffs on imports from Brazil [6] - The president imposed a 40% tariff tax on Brazil [6] - Tariffs are considered taxes on the American people, not paid by foreign countries [10][11] - Donald Trump imposed a new tariff on everything imported from Canada because Canada showed a TV ad quoting Republican President Ronald Reagan [14] Food Aid & SNAP Benefits - Money is running out for food stamps, potentially cutting off 40 million people, including 16 million children, from nutrition [34][35] - A standalone bill to keep food stamps going could easily pass with bipartisan support, but the House Speaker is not calling the House back into session [35][36] - 37% of residents are on SNAP in a county in Kentucky where 88% of votes were cast for Trump [39]

Trade Relations - US expects to lower tariffs imposed on Chinese goods due to the fentanyl crisis [1] Technology - Discussion planned with China's Xi regarding Nvidia's flagship Blackwell AI chip [1]

Trump said he expects to lower tariffs the US has imposed on Chinese goods over the country’s role in the fentanyl crisis https://t.co/6TyaoKpNAl ...

Five Republicans join Democrats to pass a resolution aimed at ending the president's tariffs on Brazil. The House is not expected to take it up.https://t.co/9HTNMCvXSu ...

Five Republicans join Democrats to pass a resolution aimed at ending the president's tariffs on Brazil. The House is not expected to take it up.https://t.co/H1fkNQDLrN ...

A handful of Republican senators joined with Democrats to pass legislation aimed at canceling Donald Trump’s tariffs on Brazil, underscoring a fracture in the president’s party on a signature economic issue https://t.co/Ux7F2x1kT7 ...