October 25, 2005

Century Aluminum Reports Third-Quarter 2005 Results

MONTEREY, CA--(MARKET WIRE)--Oct 25, 2005 -- Century Aluminum Company (NasdaqNM:CENX - News) reported a net loss of $20.1 million, or $0.62 a share, fully diluted, for the third-quarter of 2005. Reported third-quarter results were negatively impacted by an after-tax charge of $36.4 million, or $1.13 a share, for mark to market adjustments on forward contracts that do not qualify for cash flow hedge accounting.

In the second-quarter of 2005, the company changed from the last-in first-out (LIFO) inventory valuation method to the first-in first-out (FIFO) method. Financial statements for periods prior to second-quarter 2005 have been restated to reflect this change. Third-quarter 2005 results benefited from the change by $3.0 million after-tax, or $0.09 a share.

In the third-quarter of 2004, the company reported a net loss of $16.0 million, or $0.50 a share, fully diluted. Before restatement, the company reported a net loss of $16.0 million, or $0.51 a share, fully diluted, which included an after-tax charge of $30.6 million, or $0.96 a share, for a loss on early extinguishment of debt.

Sales in the third-quarter of 2005 were $270.8 million, compared with $274.3 million in the third-quarter of 2004. Shipments of primary aluminum for the quarter totaled 337.3 million pounds compared with 344.2 million pounds in the year-ago quarter.

Net income for the first nine-months of 2005 was $32.4 million, or $1.01 a share, fully diluted. This compares with net income of $8.8 million, or $0.29 a share, fully diluted, in the year-ago period ($7.0 million, or $0.23, fully diluted, before restatement).

Sales in the first nine-months of 2005 were $839.5 million compared with $770.1 million in the same period of 2004. Shipments of primary aluminum for the 2005 period were 1,013.7 million pounds compared with 971.4 million pounds in the year-ago period.

Financial results and shipment data for 2004 include Nordural from April 27, 2004, the date of acquisition.

"Lower operating results in the third-quarter of 2005 compared to the second-quarter of 2005 are attributable to lower price realizations, hurricane-related costs, power surcharges at Mt. Holly and the reduced pot count at Hawesville," said Craig Davis, chairman and chief executive officer.

"While we are encouraged by the recent strengthening in aluminum prices, we remain concerned with the current energy environment in the United States and its impact on the company in the near term."

Century presently owns 615,000 metric tonnes per year (mtpy) of primary aluminum capacity. The company owns and operates a 244,000 mtpy plant at Hawesville, Kentucky; a 170,000 mtpy plant at Ravenswood, West Virginia; and a 90,000 mtpy plant at Grundartangi, Iceland that is being expanded to 220,000 mtpy. The company also owns a 49.67-percent interest in a 222,000 mtpy reduction plant at Mt. Holly, South Carolina. Alcoa Inc. owns the remainder of the plant and is the operating partner. With the completion of the Grundartangi expansion, Century's total capacity will stand at 745,000 mtpy by mid-2007. Century also holds a 50-percent share of the 1.25 million mtpy Gramercy Alumina refinery in Gramercy, Louisiana and related bauxite assets in Jamaica. Century's corporate offices are located in Monterey, California.

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     Nine months ended
                                  September 30,          September 30,
                                            2004                   2004
                                  2005    Restated       2005    Restated
                               ---------  ---------   ---------  ---------
NET SALES:
     Third-party customers     $ 222,811  $ 231,502   $ 713,565  $ 649,278
     Related parties              48,025     42,815     125,923    120,866
                               ---------  ---------   ---------  ---------
                                 270,836    274,317     839,488    770,144
COST OF GOODS SOLD               240,778    230,835     712,515    641,630
                               ---------  ---------   ---------  ---------
GROSS PROFIT                      30,058     43,482     126,973    128,514
SELLING, GENERAL AND
 ADMINISTRATIVE EXPENSES           8,104      7,567      24,946     16,966
                               ---------  ---------   ---------  ---------
OPERATING INCOME                  21,954     35,915     102,027    111,548
INTEREST EXPENSE - Net            (5,617)   (10,035)    (18,325)   (31,840)
NET LOSS ON FORWARD CONTRACTS    (53,481)    (3,149)    (52,480)   (17,146)
LOSS ON EARLY EXTINGUISHMENT
 OF DEBT                               -    (47,448)       (835)   (47,448)
OTHER INCOME (EXPENSE) - Net         (67)      (110)        703       (798)
                               ---------  ---------   ---------  ---------
INCOME (LOSS) BEFORE INCOME
 TAXES AND EQUITY IN
 EARNINGS OF JOINT VENTURES      (37,211)   (24,827)     31,090     14,316
INCOME TAX (EXPENSE) BENEFIT      14,064      8,854     (12,010)    (5,477)
                               ---------  ---------   ---------  ---------
INCOME (LOSS) BEFORE EQUITY
 IN EARNINGS OF JOINT VENTURES   (23,147)   (15,973)     19,080      8,839
EQUITY IN EARNINGS OF JOINT
 VENTURES                          3,076          -      13,323          -
                               ---------  ---------   ---------  ---------
NET INCOME (LOSS)                (20,071)   (15,973)     32,403      8,839
PREFERRED DIVIDENDS                    -          -           -       (769)
                               ---------  ---------   ---------  ---------
NET INCOME (LOSS) APPLICABLE
 TO COMMON SHAREHOLDERS        $ (20,071) $ (15,973)  $  32,403  $   8,070
                               =========  =========   =========  =========
EARNINGS (LOSS) PER COMMON
 SHARE
     Basic - Net income (loss) $   (0.62) $   (0.50)  $    1.01  $    0.29
     Diluted - Net income
      (loss)                   $   (0.62) $   (0.50)  $    1.01  $    0.29
WEIGHTED AVERAGE COMMON SHARES
 OUTSTANDING
     Basic                        32,162     31,754      32,120     27,542
     Diluted                      32,162     31,754      32,163     27,659

Century Aluminum Company
                      Consolidated Balance Sheets
                        (Dollars in Thousands)
                             (Unaudited)
                                         September 30,      December 31,
ASSETS                                      2005               2004
                                                             Restated
                                         ----------         ----------
Current Assets:
 Cash                                    $   55,847         $   44,168
 Restricted cash                              2,028              1,678
 Accounts receivable - net                   80,510             79,576
 Due from affiliates                         17,617             14,371
 Inventories                                106,208            111,284
 Prepaid and other current assets            22,348             10,055
 Deferred taxes - current portion            14,294             24,642
                                         ----------         ----------
   Total current assets                     298,852            285,774
Property, plant and equipment - net         995,236            806,250
Intangible asset - net                       78,316             86,809
Goodwill                                     94,844             95,610
Other assets                                 79,734             58,110
                                         ----------         ----------
   Total                                 $1,546,982         $1,332,553
                                         ==========         ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
 Accounts payable, trade                 $   60,182         $   47,479
 Due to affiliates                           78,391             84,815
 Industrial revenue bonds                     7,815              7,815
 Long-term debt - current portion               558             10,582
 Accrued and other current liabilities       36,870             53,309
 Accrued employee benefits
  costs - current portion                     8,458              8,458
 Convertible senior notes                   175,000            175,000
                                         ----------         ----------
   Total current liabilities                367,274            387,458
                                         ----------         ----------
Senior unsecured notes payable - net        250,000            250,000
Nordural debt                               196,601             80,711
Accrued pension benefit costs -
 less current portion                        13,421             10,685
Accrued postretirement benefits costs -
 less current portion                        94,066             85,549
Other liabilities                            33,290             34,961
Due to affiliates - less current portion     78,735             30,416
Deferred taxes                               74,485             68,273
                                         ----------         ----------
   Total noncurrent liabilities             740,598            560,595
                                         ----------         ----------
Shareholders' Equity:
 Common stock (one cent par value,
  50,000,000 shares authorized;
  32,174,654 Shares Outstanding at
  September 30, 2005 and 32,038,297
  at December 31, 2004)                         322                320
 Additional paid-in capital                 418,876            415,453
 Accumulated other comprehensive loss       (33,388)           (52,186)
 Retained earnings                           53,300             20,913
                                         ----------         ----------
   Total shareholders' equity               439,110            384,500
                                         ----------         ----------
   Total                                 $1,546,982         $1,332,553
                                         ==========         ==========

Century Aluminum Company
                    Consolidated Statements of Cash Flows
                         (Dollars in Thousands)
                              (Unaudited)
                                               Nine months ended
                                                 September 30,
                                                                2004
                                             2005             Restated
                                          ---------          ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income                              $  32,403          $   8,839
  Adjustments to reconcile net income to
   net cash provided by operating
   activities:
    Unrealized net loss on forward
     contracts                               49,934              4,712
    Depreciation and amortization            42,306             36,889
    Deferred income taxes                    12,010             (2,860)
    Pension and other post retirement
     benefits                                11,253              7,253
    Inventory market adjustment                   -             (2,273)
    (Gain) loss on disposal of assets           (20)               719
    Non cash loss on early extinguishment
     of debt                                    253              9,659
    Change in operating assets and
     liabilities:
      Accounts receivable - net                (934)           (10,342)
      Due from affiliates                    (3,246)            (1,346)
      Inventories                             5,076             (1,939)
      Prepaids and other current assets      (2,437)            (1,276)
      Accounts payable, trade                 6,668              7,730
      Due to affiliates                       2,480              4,606
      Accrued and other current
       liabilities                          (17,613)             7,850
      Other - net                           (10,325)             3,643
                                          ---------          ---------
    Net cash provided by operating
     activities                             127,808             71,864
                                          ---------          ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property, plant and
   equipment                                 (9,629)            (8,832)
  Nordural expansion                       (200,641)           (17,482)
  Proceeds from sale of property, plant
   and equipment                                101                  -
  Restricted cash deposits                     (350)                 -
  Business acquisitions, net of cash
   acquired                                  (7,000)          (184,869)
                                          ---------          ---------
    Net cash used in investing activities  (217,519)          (211,183)
                                          ---------          ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Borrowings                                188,937            425,569
  Repayment of debt                         (83,722)          (422,846)
  Repayment of related party debt                 -            (14,000)
  Financing fees                             (5,132)           (12,805)
  Dividends                                     (16)            (3,311)
  Issuance of common stock                    1,323            214,982
                                          ---------          ---------
    Net cash provided by financing
     activities                             101,390            187,589
                                          ---------          ---------
NET INCREASE IN CASH                         11,679             48,270
CASH, BEGINNING OF PERIOD                    44,168             28,204
                                          ---------          ---------
CASH, END OF PERIOD                       $  55,847          $  76,474
                                          =========          =========

Century Aluminum Company
                        Selected Operating Data
                              (Unaudited)
                       SHIPMENTS - PRIMARY ALUMINUM
                                Direct (1)                 Toll
                        -----------------------   -------------------------
                        Metric    (000)    $/     Metric    (000)    (000)
                         Tons    Pounds   Pound    Tons    Pounds   Revenue
                        -------  -------  -----   -------  -------  -------
2005
3rd Quarter             129,555  285,619  $0.83    23,435   51,665  $33,175
2nd Quarter             130,974  288,748  $0.86    23,025   50,761  $34,174
1st Quarter             130,083  286,783  $0.88    22,756   50,168  $33,372
2004
3rd Quarter             132,893  292,978  $0.83    23,232   51,218  $31,095
2nd Quarter             133,726  294,816  $0.82    16,148   35,600  $21,483
1st Quarter             134,601  296,743  $0.78         -        -  $     -
(1) Does not include Toll shipments from Nordural
                FORWARD PRICED SALES - As of September 30, 2005
                                2005(1)    2006(2)    2007(2)    2008(2)
                               ---------  ---------  ---------  ---------
Base Volume
    Pounds (000)                 129,485    371,453    374,565    240,745
    Metric Tons                   58,733    168,489    169,900    109,200
    Percent of estimated
     capacity                         37%        24%        22%        14%
Potential Additional Volume(2)
    Pounds (000)                       -     55,556    111,113    220,903
    Metric Tons                        -     25,200     50,400    100,200
    Percent of estimated
     capacity                          -          4%         7%        13%
                                2009(2)    2010(2)  2011-2015(2)
                               ---------  ---------  ---------
Base Volume
    Pounds (000)                 231,485    231,485    826,733
    Metric Tons                  105,000    105,000    375,000
    Percent of estimated
     capacity                         14%        14%        10%
Potential Additional Volume(2)
    Pounds (000)                 231,485    231,485    826,733
    Metric Tons                  105,000    105,000    375,000
    Percent of estimated
     capacity                         14%        14%        10%
(1)  The forward priced sales in 2005 exclude October 2005 shipments to
     customers that are priced based upon the prior month's market price.
(2)  Certain financial sales contracts included in the forward priced sales
     base volume for the period 2006 through 2015 contain clauses that
     trigger potential additional sales volume when the market price for a
     contract month is above the base contract ceiling price.  These
     contracts will be settled monthly and, if the market price exceeds the
     ceiling price for all contract months through 2015, the potential
     additional sales volume would be equivalent to the amounts shown
     above.


Contact:
     Contact:
     Century Aluminum Company, Monterey, California
     Michael Dildine
     831-642-9364
     mdildine@centuryca.com
      

Source: Century Aluminum Company


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