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-- -- -- out -- commodities have but taken a hit of past two months but Goldman Sachs predicts a 29% return of the next year.
Good news for aluminum maker and recycler novellas and CEO Phil -- joins us now you know -- thing I like about your company -- its traces its DNA.
Active your biggest rival -- -- Because they -- a spin off they like it decades ago than that spin offs but you off -- 05 you're eleven billion annual revenue -- about double that.
So how's business -- -- in the aluminum.
And but it's fun to compete against sort really are apparent but -- -- the aluminum worldwide has great need to think about the auto sector just -- United States its booming for us.
Yeah autos make about 10% of your sales and that you're expecting a 25%.
Annual growth rate over the next five years.
How much -- autos make of your business after that kind of growth it's hard to predict but if you -- -- a few years with all the changes are seeing that could double.
And as we look at worldwide the demand is outstripping our ability to make it.
While until the 10% goes to 20% revenues at these revenue basic triple in that part of your business at the fastest growing part of this absolutely and this is really -- dynamic place to play and when you think about the changes that are coming.
Like I said they're not only in the United States but they're globally but they driver business enormously -- get 55% a revenue comes from aluminum cans and you got -- -- forty billion cans a year.
And you hope eventually in the next few years to get to a 100% of the component recycling that -- your profits that's who does anytime you increase recycling you improve the spreads you business and that always -- good business for us tonight for a profit motive can drive a green -- -- rather than a government policy.
Now in cans aluminum if aluminum prices around the world dropped does that hurt your profits or does it help your profits.
It actually hurts our profits because it reduces the spread between the LME price and what we buy scrapped for.
So we always line the only price to be a little bit higher than it is and we always wanna buy more scrap -- means.
London metal exchange the price of metric ton of aluminum how stupidly they know that that's -- that's OK and electronics now aluminum used in electronics picks up 15%.
Of your business.
I thought alumina would have been pushed up by other newer materials by now it's the aluminum is immaterial of choice from a design point just look at the back of an iPad that's -- aluminum that's meaning manufactured in.
Asian manufacture many of them oppose parts that -- in the right this price decline that would hurt your profit.
I don't see how -- go down much if worldwide demand is soaring in electronics cars and aluminum cans.
You know I don't know why the price -- -- is going down there's great demand worldwide we're seeing it but you know some things are driven by other factors and price and demand in the consumer being -- you just hedging I guess -- in the markets and also well we're all set that lowering prices -- the world's largest -- aluminum we place about 101000 trades a month to cover all of her positions -- Okay you'll be getting a call from the SEC and then in the Dodd-Frank people thank you very much for being with -- Phil Martin's -- -- good to see you sir thank you very much.
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