October 25, 2007

Century Aluminum Reports Third Quarter 2007 Earnings

MONTEREY, CA, Oct 25, 2007 (MARKET WIRE via COMTEX News Network) -- Century Aluminum Company (NASDAQ: CENX) reported net income of $7.5 million ($0.18 per basic share and $0.17 per diluted share) for the third quarter of 2007. Reported third quarter results include an after-tax charge of $46.2 million ($1.13 per basic share and $1.06 per diluted share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting.

In the third quarter of 2006, the company reported net income of $173.9 million ($5.36 per basic share and $5.26 per diluted share), which included an after-tax gain of $134.6 million ($4.15 per basic share and $4.06 per diluted share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting.

Third quarter 2007 highlights included:

--  The 40,000 tonne expansion of the Grundartangi, Iceland smelter
    remains on schedule and budget for a fourth quarter, 2007 completion. At
    the end of the third quarter, approximately two-thirds of the expansion
    capacity was operational.  Grundartangi produced at an annual rate of
    242,000 tonnes during the quarter.
--  Nordural received a positive opinion from the Icelandic Planning
    Agency on the Environmental Impact Assessment for the company's proposed
    greenfield smelter to be constructed near Helguvik, Iceland.  The project
    remains on schedule.
--  All primary aluminum facilities operated at or above capacity.
--  Cash flow remained strong.  Cash flow from operations for the first
    nine months of 2007 was a use of cash of $41 million; included in this
    result was a use of cash of $259 million due to an increase in short-term
    investments.  Cash flow from operations for the first nine months of 2006
    was $118 million.


Sales in the third quarter of 2007 were $454.4 million, compared with $381.3 million in the third quarter of 2006. Shipments of primary aluminum for the quarter totaled 195,540 tonnes compared with 169,598 tonnes in the third quarter of 2006. The increase reflects additional volume from the continuing expansion at Grundartangi and the temporary shutdown of one potline at the Ravenswood, West Virginia smelter in 2006, which resulted in lost production of approximately 8,000 tonnes in the year-ago quarter.

Net income for the first nine months of 2007 was $11.1 million ($0.31 per basic and $0.29 per diluted share), which includes an after-tax charge of $172.1 million ($4.79 per basic share and $4.50 per diluted share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting. Net income for the first nine months of 2006 was $78.2 million ($2.41 per basic share and $2.38 per diluted share) which included an after tax charge of $68.4 million ($2.11 per basic share and $2.04 per diluted share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting.

Sales in the first nine months of 2007 were $1,366.0 million compared with $1,134.2 million in the same period of 2006. Shipments of primary aluminum for the first nine months of 2007 were 568,812 tonnes compared with 498,264 tonnes for the comparable 2006 period.

"Century achieved solid performance during the third quarter," said president and chief executive officer Logan W. Kruger. "Our plants produced above capacity and operating costs were within expectations, despite continuing upward pressure on U.S. power costs. We made significant progress on our growth projects in Iceland and elsewhere. We expect to complete the latest 40,000 tonne expansion of the Grundartangi facility later this year, on schedule and on budget. The positive opinion by the Icelandic Planning Agency on the Environmental Impact Assessment for our proposed greenfield smelter at Helguvik is a significant milestone and we plan to begin preparing the site for construction by early next year."

Century Aluminum Company owns primary aluminum capacity in the United States and Iceland, as well as an ownership interest in alumina and bauxite assets in the United States and Jamaica. 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.

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     Nine months ended
                                  September 30,         September 30,
                              --------------------  ----------------------
                                2007       2006         2007       2006
                              ---------  ---------  -----------  ---------
NET SALES:
   Third-party customers      $ 360,336  $ 312,038  $ 1,112,072  $ 966,753
   Related parties               94,035     69,239      253,961    167,446
                              ---------  ---------  -----------  ---------
                                454,371    381,277    1,366,033  1,134,199
COST OF GOODS SOLD              369,875    310,303    1,062,493    878,753
                              ---------  ---------  -----------  ---------
GROSS PROFIT                     84,496     70,974      303,540    255,446
SELLING, GENERAL AND
 ADMINISTRATIVE EXPENSES         13,372      8,144       40,784     28,639
                              ---------  ---------  -----------  ---------
OPERATING INCOME                 71,124     62,830      262,756    226,807
INTEREST EXPENSE - Net           (2,657)    (9,823)     (19,126)   (25,025)
NET GAIN (LOSS) ON FORWARD
 CONTRACTS                      (75,041)   210,268     (279,897)  (106,948)
OTHER INCOME (EXPENSE) - Net       (131)         3       (3,426)      (121)
                              ---------  ---------  -----------  ---------
INCOME (LOSS) BEFORE INCOME
 TAXES AND EQUITY IN EARNINGS
 OF JOINT VENTURES               (6,705)   263,278      (39,693)    94,713
INCOME TAX (EXPENSE) BENEFIT     10,438    (92,922)      39,396    (27,675)
                              ---------  ---------  -----------  ---------
INCOME (LOSS) BEFORE EQUITY
 IN EARNINGS OF JOINT VENTURES    3,733    170,356         (297)    67,038
EQUITY IN EARNINGS OF JOINT
 VENTURES                         3,737      3,583       11,351     11,130
                              ---------  ---------  -----------  ---------
NET INCOME                    $   7,470  $ 173,939  $    11,054  $  78,168
                              =========  =========  ===========  =========
EARNINGS PER COMMON SHARE
   Basic - Net income         $    0.18  $    5.36  $      0.31  $    2.41
   Diluted - Net income       $    0.17  $    5.26  $      0.29  $    2.38
WEIGHTED AVERAGE COMMON
 SHARES OUTSTANDING
   Basic                         40,957     32,438       35,927     32,374
   Diluted                       43,459     33,148       38,246     33,515
                         Century Aluminum Company
                        Consolidated Balance Sheets
                          (Dollars in Thousands)
                                (Unaudited)
                                              September 30,  December 31,
ASSETS                                            2007           2006
                                              -------------  -------------
Current Assets:
   Cash                                       $      64,776  $      96,365
   Restricted cash                                      867          2,011
   Short-term investments                           258,727              -
   Accounts receivable - net                        100,127        113,371
   Due from affiliates                               27,693         37,542
   Inventories                                      166,400        145,410
   Prepaid and other current assets                  20,194         19,830
   Deferred taxes - current portion                 116,042        103,110
                                              -------------  -------------
      Total current assets                          754,826        517,639
Property, plant and equipment - net               1,259,776      1,218,777
Intangible asset - net                               51,101         61,594
Goodwill                                             94,844         94,844
Other assets                                        323,824        292,380
                                              -------------  -------------
      Total                                   $   2,484,371  $   2,185,234
                                              =============  =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
   Accounts payable, trade                    $      72,859  $      64,849
   Due to affiliates                                225,960        282,282
   Accrued and other current liabilities             44,250         75,143
   Long term debt - current portion                       -         30,105
   Accrued employee benefits costs - current
    portion                                          11,083         11,083
   Convertible senior notes                         175,000        175,000
   Industrial revenue bonds                           7,815          7,815
                                              -------------  -------------
      Total current liabilities                     536,967        646,277
                                              -------------  -------------
Senior unsecured notes payable                      250,000        250,000
Nordural debt                                        20,000        309,331
Accrued pension benefit costs - less current
 portion                                             15,987         19,239
Accrued postretirement benefits costs - less
 current portion                                    209,092        206,415
Due to affiliates - less current portion            716,636        554,864
Other liabilities                                    40,686         27,811
Deferred taxes                                       59,860         41,587
                                              -------------  -------------
      Total noncurrent liabilities                1,312,261      1,409,247
                                              -------------  -------------
Shareholders' Equity:
   Common stock (one cent par value,
    100,000,000 shares authorized; 40,958,071
    shares outstanding at September 30, 2007
    and 32,457,670 at December 31, 2006)                410            325
   Additional paid-in capital                       854,545        432,270
   Accumulated other comprehensive loss             (86,653)      (166,572)
   Accumulated deficit                             (133,159)      (136,313)
                                              -------------  -------------
      Total shareholders' equity                    635,143        129,710
                                              -------------  -------------
      Total                                   $   2,484,371  $   2,185,234
                                              =============  =============
                         Century Aluminum Company
                  Consolidated Statements of Cash Flows
                          (Dollars in Thousands)
                                (Unaudited)
                                                        Nine months ended
                                                          September 30,
                                                        2007       2006
                                                      ---------  ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                         $  11,054  $  78,168
   Adjustments to reconcile net income to net cash
    (used in) provided by operating activities:
      Unrealized net loss on forward contracts          201,999     62,766
      Depreciation and amortization                      57,735     50,090
      Deferred income taxes                             (38,822)   (26,224)
      Pension and other postretirement benefits           6,499     11,005
      Stock-based compensation                            3,765      4,603
      Excess tax benefits from share based
       compensation                                        (516)    (1,244)
      (Gain) loss on disposal of assets                     (49)        43
      Non-cash loss on early extinguishment of debt       2,461          -
      Increase in short-term investments - net         (258,727)         -
      Undistributed earnings of joint ventures          (11,351)   (11,130)
      Change in operating assets and liabilities:
      Accounts receivable - net                          13,244        628
      Due from affiliates                                 9,849     (9,562)
      Inventories                                       (20,989)   (29,084)
      Prepaid and other current assets                   (1,988)    (4,564)
      Accounts payable, trade                            11,849       (784)
      Due to affiliates                                  12,018      3,129
      Accrued and other current liabilities             (52,289)    (6,381)
      Other - net                                        13,518     (3,949)
                                                      ---------  ---------
      Net cash (used in) provided by operating
       activities                                       (40,740)   117,510
                                                      ---------  ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of property, plant and equipment            (13,693)   (10,610)
   Nordural expansion                                   (79,560)  (155,756)
   Proceeds from sale of property, plant and
    equipment                                               543         22
   Restricted cash deposits                               3,744     (3,998)
                                                      ---------  ---------
      Net cash used in investing activities             (88,966)  (170,342)
                                                      ---------  ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Borrowings of long-term debt                          30,000     89,000
   Repayment of long-term debt                         (349,436)      (434)
   Net repayments under revolving credit facility             -     (8,069)
   Excess tax benefits from share based compensation        516      1,244
   Issuance of common stock                             417,037      3,433
                                                      ---------  ---------
      Net cash provided by financing activities          98,117     85,174
                                                      ---------  ---------
NET (DECREASE) INCREASE IN CASH                         (31,589)    32,342
CASH, BEGINNING OF PERIOD                                96,365     17,752
                                                      ---------  ---------
CASH, END OF PERIOD                                   $  64,776  $  50,094
                                                      =========  =========
                          Century Aluminum Company
                          Selected Operating Data
                                (Unaudited)
                       SHIPMENTS - PRIMARY ALUMINUM
                         Direct (1)                       Toll
                ----------------------------  -----------------------------
                 Metric     (000)              Metric    (000)     (000)
                  Tons     Pounds   $/Pound     Tons     Pounds   Revenue
                --------  --------  --------  --------  --------  ---------
2007
3rd Quarter      134,494   296,509  $   1.13    61,046   134,583  $ 120,554
2nd Quarter      132,496   292,104  $   1.19    56,154   123,798  $ 117,667
1st Quarter      131,568   290,057  $   1.15    53,054   116,964  $ 114,383
2006
3rd Quarter      126,810   279,568  $   1.07    42,788    94,331  $  81,424
2nd Quarter      132,590   292,311  $   1.12    39,125    86,255  $  77,702
1st Quarter      132,378   291,843  $   1.03    24,573    54,174  $  45,166
(1) Does not include Toll shipments from Nordural
        FORWARD PRICED SALES - As of September 30, 2007
                                                         2011-
               2007(1)(2)  2008(2)   2009(2)   2010(2)   2015(2)
                --------  --------  --------  --------  --------
Base Volume
   Pounds (000)   92,843   241,745   231,485   231,485   826,733
   Metric Tons    42,113   109,654   105,000   105,000   375,000
   Percent of
    estimated
    capacity          21%       14%       13%       13%        9%
Potential Additional
 Volume(2)
   Pounds (000)   27,778   220,903   231,485   231,485   826,733
   Metric Tons    12,600   100,200   105,000   105,000   375,000
   Percent of
    estimated
    capacity           6%       12%       13%       13%        9%
(1) The forward priced sales in 2007 exclude October 2007 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 2007 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.

Contacts:
Mike Dildine (media)
831-642-9364

Shelly Lair (investors)
831-642-9357


SOURCE: Century Aluminum Company


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