April 24, 2008

Century Reports First Quarter 2008 Results

MONTEREY, CA, Apr 24, 2008 (MARKET WIRE via COMTEX News Network) -- Century Aluminum Company (NASDAQ: CENX) today reported a net loss of $232.8 million ($5.67 per basic and diluted share) for the first quarter of 2008. Reported first quarter results were negatively impacted by an after-tax charge of $285.9 million ($6.97 per basic share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting. Quarterly results were also negatively impacted by a tax charge of $2.9 million ($0.07 per basic share) relating to the decrease in the carrying amount of deferred tax assets as a result of a state tax law change. The dilutive effect of the convertible notes, options and service-based awards would reduce basic EPS by $0.09 per share. Cash used to settle forward contracts that do not qualify for cash flow hedge accounting was $52.3 million.

In the first quarter of 2007, the company reported net income of $64.2 million ($1.98 per basic share and $1.87 per diluted share). Mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting were not material in the first quarter of 2007. Cash used to settle forward contracts that do not qualify for cash flow hedge accounting was $27.1 million.

First-quarter 2008 highlights included:

--  Revenues of $471 million were at record levels.

--  Primary aluminum shipments of 199,721 tonnes increased eight percent
    from the first quarter of 2007, reflecting the fourth-quarter 2007
    completion of the expansion of the Grundartangi, Iceland smelter to an
    annual capacity of 260,000 tonnes.

--  Site preparation was initiated on the first phase of a greenfield
    smelter to be constructed near Helguvik, Iceland.

--  The company entered into a joint venture agreement with Pingguo
    Qiangqiang Carbon (PQQ) to acquire a 40 percent stake in a newly
    constructed carbon anode and cathode facility located in south China.


Sales for the first quarter of 2008 were $471.1 million, an increase of five percent compared with $447.7 million for the first quarter of 2007. Shipments of primary aluminum for the 2008 first quarter were 199,721 metric tonnes, compared with 184,622 metric tonnes shipped in the year-ago quarter.

"Continuing production growth from our successful 2007 capacity expansion at Grundartangi, coupled with robust metal markets, resulted in a strong first quarter for Century," said president and chief executive officer, Logan W. Kruger. "In Iceland, we reached an important milestone with the commencement of site preparation for our new aluminum smelter near Helguvik. Finally, to support our growing primary aluminum capacity, we secured a long-term, high-quality supply of carbon anodes through our investment with a respected and experienced operator in China."

Century Aluminum Company owns primary aluminum capacity in the United States and Iceland, as well as an 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.

Certified Advisors for the First North market of the OMX Nordic Exchange Iceland hf. for Global Depositary Receipts in Iceland:

--  Astridur Thordardottir, Senior Manager-Corporate Finance, Landsbanki
    Islands hf.

--  Olafur Finsen, Senior Legal Advisor-Corporate Finance, Landsbanki
    Islands 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,
                                                    ----------------------
                                                       2008        2007
                                                    ----------  ----------
NET SALES:
  Third-party customers                             $  356,893  $  380,853
  Related parties                                      114,249      66,804
                                                    ----------  ----------
                                                       471,142     447,657
COST OF GOODS SOLD                                     375,147     337,005
                                                    ----------  ----------
GROSS PROFIT                                            95,995     110,652
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES            18,866      12,967
                                                    ----------  ----------
OPERATING INCOME                                        77,129      97,685
INTEREST EXPENSE - Net                                  (3,720)     (9,030)
NET GAIN (LOSS) ON FORWARD CONTRACTS                  (448,308)        390
OTHER EXPENSE - Net                                       (533)       (156)
                                                    ----------  ----------
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY
 IN EARNINGS OF JOINT VENTURES                        (375,432)     88,889
INCOME TAX (EXPENSE) BENEFIT                           138,243     (28,087)
                                                    ----------  ----------
INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF JOINT
 VENTURES                                             (237,189)     60,802
EQUITY IN EARNINGS OF JOINT VENTURES                     4,393       3,447
                                                    ----------  ----------
NET INCOME (LOSS)                                   $ (232,796) $   64,249
                                                    ==========  ==========
EARNINGS (LOSS) PER COMMON SHARE
  Basic - Net income (loss)                         $    (5.67) $     1.98
  Diluted - Net income (loss)                       $    (5.67) $     1.87
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
  Basic                                                 41,040      32,508
  Diluted                                               41,040      34,426
                         Century Aluminum Company
                        Consolidated Balance Sheets
                          (Dollars in Thousands)
                                (Unaudited)
                                                   March 31,   December 31,
ASSETS                                                2008         2007
                                                  -----------  -----------
Current Assets:
  Cash                                            $   105,550  $    60,962
  Restricted cash                                         873          873
  Short-term investments                              261,255      280,169
  Accounts receivable - net                            99,807       93,451
  Due from affiliates                                  35,206       26,693
  Inventories                                         187,939      175,101
  Prepaid and other current assets                     50,130       40,091
  Deferred taxes - current portion                     99,246       69,858
                                                  -----------  -----------
    Total current assets                              840,006      747,198
Property, plant and equipment - net                 1,260,687    1,260,040
Intangible asset - net                                 43,834       47,603
Goodwill                                               94,844       94,844
Deferred taxes - less current portion                 456,136      321,068
Other assets                                          112,670      107,518
                                                  -----------  -----------
    Total                                         $ 2,808,177  $ 2,578,271
                                                  ===========  ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
  Accounts payable, trade                         $    93,272  $    79,482
  Due to affiliates                                   336,992      216,754
  Accrued and other current liabilities                56,357       60,482
  Accrued employee benefits costs - current
   portion                                             11,997       11,997
  Convertible senior notes                            175,000      175,000
  Industrial revenue bonds                              7,815        7,815
                                                  -----------  -----------
    Total current liabilities                         681,433      551,530
                                                  -----------  -----------
Senior unsecured notes payable                        250,000      250,000
Accrued pension benefit costs - less current
 portion                                               14,561       14,427
Accrued postretirement benefits costs - less
 current portion                                      187,958      184,853
Due to affiliates - less current portion            1,206,756      913,683
Other liabilities                                      56,788       39,643
Deferred taxes                                         69,744       62,931
                                                  -----------  -----------
    Total noncurrent liabilities                    1,785,807    1,465,537
                                                  -----------  -----------
Shareholders' Equity:
  Common stock (one cent par value, 100,000,000
   shares authorized; 41,131,221 shares
   outstanding at March 31, 2008 and
   40,988,058 at December 31, 2007)                       411          410
  Additional paid-in capital                          864,797      857,787
  Accumulated other comprehensive loss                (46,013)     (51,531)
  Accumulated deficit                                (478,258)    (245,462)
                                                  -----------  -----------
    Total shareholders' equity                        340,937      561,204
                                                  -----------  -----------
    Total                                         $ 2,808,177  $ 2,578,271
                                                  ===========  ===========
                         Century Aluminum Company
                  Consolidated Statements of Cash Flows
                          (Dollars in Thousands)
                                (Unaudited)
                                                      Three months ended
                                                          March 31,
                                                       2008        2007
                                                    ----------  ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                                 $ (232,796) $   64,249
  Adjustments to reconcile net income (loss) to
   net cash provided by operating activities:
    Unrealized net (gain) loss on forward contracts    395,930     (27,399)
    Depreciation and amortization                       20,785      18,905
    Deferred income taxes                             (143,682)      8,087
    Pension and other postretirement benefits            4,177       5,143
    Stock-based compensation                             1,266       1,521
    Excess tax benefits from share based
     compensation                                         (499)       (330)
    Purchase of short-term trading securities         (108,536)          -
    Sale of short-term trading securities              127,450           -
    Undistributed earnings of joint ventures            (4,393)     (3,447)
    Change in operating assets and liabilities:
      Accounts receivable - net                         (6,356)        447
      Due from affiliates                               (8,513)     15,074
      Inventories                                      (12,802)    (18,433)
      Prepaid and other current assets                   2,710      (1,217)
      Accounts payable, trade                           12,797      24,429
      Due to affiliates                                 24,542       5,381
      Accrued and other current liabilities            (12,852)     (4,611)
      Other - net                                         (378)     10,319
                                                    ----------  ----------
    Net cash provided by operating activities           58,850      98,118
                                                    ----------  ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property, plant and equipment             (8,915)     (2,438)
  Nordural expansion                                    (7,389)    (29,175)
  Restricted cash deposits                                   -       2,600
                                                    ----------  ----------
    Net cash used in investing activities              (16,304)    (29,013)
                                                    ----------  ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
  Borrowings of long-term debt                               -      30,000
  Repayment of long-term debt                                -     (29,649)
  Excess tax benefits from share based
   compensation                                            499         330
  Issuance of common stock - net of issuance costs       1,543       1,973
                                                    ----------  ----------
    Net cash provided by financing activities            2,042       2,654
                                                    ----------  ----------
NET INCREASE IN CASH                                    44,588      71,759
CASH, BEGINNING OF PERIOD                               60,962      96,365
                                                    ----------  ----------
CASH, END OF PERIOD                                 $  105,550  $  168,124
                                                    ==========  ==========
                         Century Aluminum Company
                          Selected Operating Data
                                (Unaudited)
                       SHIPMENTS - PRIMARY ALUMINUM
                         Direct (1)                       Toll
                ----------------------------- -----------------------------
                 Metric     (000)              Metric     (000)     (000)
                  Tons     Pounds    $/Pound    Tons     Pounds    Revenue
                --------- --------- --------- --------- --------- ---------
2008
1st Quarter       133,004   293,223 $    1.17    66,717   147,086 $ 127,177
2007
1st Quarter       131,568   290,057 $    1.15    53,054   116,964 $ 114,383
(1) Does not include Toll shipments from Nordural
                FORWARD PRICED SALES - As of March 31, 2008
                2008(1)(2) 2009(2)   2010(2)   2011(2)  2012-2015(2)
                --------- --------- --------- --------- ------------
Base Volume
  Pounds (000)    167,888   231,485   231,485   165,347      661,386
  Metric Tons      76,153   105,000   105,000    75,000      300,000
  Percent of
   estimated
   capacity          12.7%     13.0%     12.8%      9.1%         9.1%
Potential
 Additional
 Volume(2)
  Pounds (000)    165,677   231,485   231,485   165,347      661,386
  Metric Tons      75,150   105,000   105,000    75,000      300,000
  Percent of
   estimated
   capacity          12.5%     13.0%     12.8%      9.1%         9.1%
(1) The forward priced sales in 2008 exclude April 2008 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 2008 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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