MONTEREY, CA, Apr 27, 2010 (MARKETWIRE via COMTEX News Network) -- Century Aluminum Company (NASDAQ: CENX) today reported net income of $6.3 million ($0.06 per basic and diluted share) for the first quarter of 2010. Cost of sales for the quarter includes a $15.5 million net after-tax charge for the portion of power costs at Hawesville payable by the previous power supplier per the terms of the power agreement.
For the first quarter of 2009, Century reported a net loss of $114.6 million ($1.77 per basic and diluted share). These results were negatively impacted by a charge of $24.3 million ($0.38 per basic and diluted share) related to employee separation expenses, supplier payments and other costs resulting from production curtailments at the Ravenswood, WV and Hawesville, KY primary aluminum smelters.
Recent highlights included:
-- The Grundartangi smelter shipped at an annualized rate of approximately
276,000 metric tons during the quarter.
-- Nordural continued preparations for an anticipated restart of major
construction activity on the Helguvik smelter project in 2010.
-- Nordural reached a tentative new five-year labor agreement for the
Grundartangi smelter with its unions in Iceland.
-- The West Virginia state legislature enacted legislation which permits
the Public Service Commission to set special electric power rates for
specific types of customers.
Sales for the first quarter of 2010 were $285.4 million, compared with $224.6 million for the first quarter of 2009. Shipments of primary aluminum for the 2010 first quarter were 144,677 tonnes, compared with 165,488 tonnes shipped in the year-ago quarter.
"Overall, the market environment continued to exhibit signs of improvement during the early part of 2010," commented Logan W. Kruger, Century's president and chief executive officer. "Industrial activity in developed economies increased at an encouraging pace, while China and other developing regions remained on an impressive growth trajectory. Inventory levels, however, remain high and new capacity continues to increase production levels in certain key regions. Against this backdrop, we are closely monitoring changes in financial markets and industry pricing dynamics, and the impact these factors could have on the
amount of metal available to the market, regional premiums and the price of the commodity itself.
"Century had a positive quarter," continued Mr. Kruger. "Our smelters in Kentucky and Iceland operated safely and efficiently. The Company produced good cash flow, and we continue to build our financial strength. We are encouraged by the passage of legislation in West Virginia relating to electric power rates. Although this development is a key factor in enabling the possible restart of the Ravenswood smelter at some point in time, significant work remains. At our Helguvik project in Iceland, we continue to spend considerable effort on finalizing the conditions required for a restart of major construction activity and believe we should be able to achieve this objective later during the year."
Century Aluminum Company owns primary aluminum capacity in the United States and
Iceland. Century's corporate offices are located in Monterey, California.
Century Aluminum's quarterly conference call is scheduled for 5:00 p.m. Eastern time today. To listen to the conference call and to view related presentation materials, go to www.centuryaluminum.com and click on the conference call link on the homepage.
Certified Advisors for the First North market of the OMX Nordic Exchange Iceland hf. for Global Depositary Receipts in Iceland:
Atli B. Gudmundsson, Senior Manager -- Corporate Finance, NBI hf.
Steingrimur Helgason, Director -- Corporate Finance, NBI hf.
Cautionary Statement
This press release may contain "forward-looking statements" within the meaning of U.S. federal securities laws. The company has based its forward-looking statements on current expectations
and projections about the future; however, these statements are
subject to risks, uncertainties and assumptions, any of which could cause the company's actual results to differ materially from those expressed in its forward-looking statements. More information about these risks, uncertainties and assumptions can be found in the risk factors and forward-looking statements cautionary language contained in the company's Annual Report on Form 10-K and in other filings made with the Securities and Exchange Commission. The company does not undertake, and specifically disclaims, any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date such forward-looking statements are made.
Century Aluminum Company
Consolidated Statements of Operations
(in Thousands, Except Per Share Amounts)
(Unaudited)
Three months ended
March 31,
----------------------
2010 2009
---------- ----------
NET SALES:
Third-party customers $ 192,932 $ 170,414
Related parties 92,457 54,173
---------- ----------
285,389 224,587
COST OF GOODS SOLD 251,413 296,948
---------- ----------
GROSS PROFIT (LOSS) 33,976 (72,361)
OTHER OPERATING EXPENSES - NET 4,465 24,332
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 12,251 10,120
---------- ----------
OPERATING INCOME (LOSS) 17,260 (106,813)
INTEREST EXPENSE - THIRD PARTY - Net (6,297) (7,318)
INTEREST INCOME - RELATED PARTIES 109 142
NET LOSS ON FORWARD CONTRACTS (1,972) (3,602)
OTHER INCOME (EXPENSE) - Net 408 (242)
---------- ----------
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY
IN EARNINGS (LOSSES) OF JOINT VENTURES 9,508 (117,833)
INCOME TAX (EXPENSE) BENEFIT (4,281) 4,096
---------- ----------
INCOME (LOSS) BEFORE EQUITY IN EARNINGS (LOSSES)
OF JOINT VENTURES 5,227 (113,737)
EQUITY IN EARNINGS (LOSSES) OF JOINT VENTURES 1,105 (887)
---------- ----------
NET INCOME (LOSS) $ 6,332 $ (114,624)
========== ==========
EARNINGS (LOSS) PER COMMON SHARE
Basic - Net Income (Loss) $ 0.06 $ (1.77)
Diluted - Net Income (Loss) $ 0.06 $ (1.77)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 92,550 64,608
Diluted 93,091 64,608
Net Income (Loss) Allocated to Common Shareholders $ 5,808 $ (114,624)
Century Aluminum Company
Consolidated Balance Sheets
(Dollars in Thousands)
(Unaudited)
March 31, December 31,
ASSETS 2010 2009
----------- -----------
Current Assets:
Cash $ 213,739 $ 198,234
Restricted cash 9,372 8,879
Accounts receivable - net 35,392 37,706
Due from affiliates 35,524 19,255
Inventories 140,670 131,473
Prepaid and other current assets 74,669 93,921
----------- -----------
Total current assets 509,366 489,468
Property, plant and equipment - net 1,284,904 1,298,288
Due from affiliates - less current portion 8,968 5,859
Other assets 72,615 68,135
----------- -----------
Total $ 1,875,853 $ 1,861,750
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable, trade $ 74,993 $ 77,301
Due to affiliates 39,309 32,708
Accrued and other current liabilities 36,618 38,598
Accrued employee benefits costs - current
portion 12,997 12,997
Convertible senior notes 43,786 43,239
Industrial revenue bonds 7,815 7,815
----------- -----------
Total current liabilities 215,518 212,658
----------- -----------
Senior notes payable 247,843 247,624
Accrued pension benefit costs - less current
portion 44,072 43,281
Accrued post retirement benefits costs - less
current portion 179,151 177,231
Other liabilities 26,824 31,604
Deferred taxes 85,933 81,622
----------- -----------
Total noncurrent liabilities 583,823 581,362
----------- -----------
Shareholders' Equity:
Series A preferred stock (one cent par value,
5,000,000 shares authorized; 82,943 and
83,452 shares issued and outstanding at
March 31, 2010 and December 31, 2009,
respectively) 1 1
Common stock (one cent par value, 195,000,000
shares authorized; 92,660,357 and 92,530,068
shares issued and outstanding at March 31,
2010 and December 31, 2009, respectively) 927 925
Additional paid-in capital 2,503,263 2,501,389
Accumulated other comprehensive loss (73,696) (74,270)
Accumulated deficit (1,353,983) (1,360,315)
----------- -----------
Total shareholders' equity 1,076,512 1,067,730
----------- -----------
Total $ 1,875,853 $ 1,861,750
=========== ===========
Century Aluminum Company
Consolidated Statements of Cash Flows
(Dollars in Thousands)
(Unaudited)
Three months ended
March 31,
----------------------
2010 2009
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 6,332 $ (114,624)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Unrealized net loss on forward contracts 1,853 1,817
Unrealized gain on contractual receivable (88) -
Realized benefit of contractual receivable 15,368 -
Accrued and other plant curtailment costs - net (2,272) 18,235
Debt discount amortization 766 1,990
Depreciation and amortization 15,778 20,845
Lower of cost or market inventory adjustment 57 2,271
Deferred income taxes 4,319 25,548
Pension and other post retirement benefits 3,666 4,112
Stock-based compensation 1,284 (90)
Undistributed (earnings) losses of joint
ventures (1,105) 887
Change in operating assets and liabilities:
Accounts receivable - net 2,314 26,342
Sale of short-term trading securities - 13,686
Due from affiliates (20,760) 26,904
Inventories (9,254) 4,761
Prepaid and other current assets 3,692 74,187
Accounts payable, trade (2,223) (12,201)
Due to affiliates 6,601 (8,037)
Accrued and other current liabilities 1,423 (9,887)
Other - net (6,093) (2,010)
---------- ----------
Net cash provided by operating activities 21,658 74,736
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (972) (9,184)
Nordural expansion (4,678) (6,501)
Investments in and advances to joint ventures (10) -
Restricted and other cash deposits (493) -
---------- ----------
Net cash used in investing activities (6,153) (15,685)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment under revolving credit facility - (25,000)
Issuance of common stock - net - 104,041
---------- ----------
Net cash provided by financing activities - 79,041
---------- ----------
NET INCREASE IN CASH 15,505 138,092
CASH, BEGINNING OF PERIOD 198,234 129,400
---------- ----------
CASH, END OF PERIOD $ 213,739 $ 267,492
========== ==========
Century Aluminum Company
Selected Operating Data
(Unaudited)
SHIPMENTS - PRIMARY ALUMINUM
Direct (1) Toll
---------------------- ------------------------
Metric (000) Metric (000) (000)
Tons Pounds $/Pound Tons Pounds Revenue
------ ------- ------- ------ ------- ---------
2010
1st Quarter 76,653 168,990 $ 1.04 68,024 149,968 $ 109,659
2009
1st Quarter 97,392 214,712 $ 0.72 68,096 150,126 $ 71,048
(1) Does not include Toll shipments from Nordural Grundartangi
Contacts:
Mike Dildine (media)
831-642-9364
Shelly Lair (investors)
831-642-9357
SOURCE: Century Aluminum Company
Copyright 2010 Marketwire, Inc., All rights reserved.
News Provided by COMTEX