April 21, 2009

Century Reports First Quarter 2009 Results

MONTEREY, CA, Apr 21, 2009 (MARKET WIRE via COMTEX News Network) -- Century Aluminum Company (NASDAQ: CENX) today reported a net loss of $114.6 million ($1.77 per basic and diluted share) for the first quarter of 2009. Quarterly 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.

In the first quarter of 2008, the company reported a net loss (as adjusted to reflect the implementation of FASB Staff Position APB 14-1 -- Accounting for Convertible Debt Instruments) of $233.9 million ($5.70 per basic share and diluted share). These 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 did not qualify for cash flow hedge accounting. Cash used to settle forward contracts that did not qualify for cash flow hedge accounting was $52.3 million.

Recent highlights included:

--  Century has curtailed 28 percent of its global primary aluminum
    capacity since December 2008.  This amount represents approximately 42
    percent of our U.S. primary aluminum capacity.
    --  The Ravenswood, WV smelter was completely curtailed in February,
        following the curtailment of one of the plant's four potlines in
        December 2008. Ravenswood's production capacity is approximately
        14,170 tonnes per month.
    --  One of the five potlines at the Hawesville, KY smelter was
        curtailed in March, reducing primary aluminum capacity by 4,370
        tonnes per month.
--  The jointly-owned alumina refinery in Gramercy, Louisiana reduced its
    production of smelter grade alumina to 50 percent of capacity, or a
    total of approximately 500,000 tonnes per year.
--  As a result of the U.S. plant curtailments, total primary aluminum
    shipments of 165,488 tonnes decreased 17 percent from the first quarter
    of 2008. Toll shipments from Iceland of 68,096 tonnes increased two
    percent from the first quarter of 2008.
--  In February, we sold 24.5 million shares of common stock in a public
    offering, raising net proceeds of approximately $104 million.
--  During the quarter, we received federal tax refunds totaling
    approximately $90 million.

Sales for the first quarter of 2009 were $224.6 million, compared with $471.1 million for the first quarter of 2008. Shipments of primary aluminum for the 2009 first quarter were 165,488 metric tonnes, compared with 199,721 metric tonnes shipped in the year-ago quarter.

"We took aggressive actions during the quarter to prepare Century for a prolonged period of weak aluminum markets," said president and chief executive officer Logan W. Kruger. "Importantly, the steps we have taken and those we continue to pursue are aimed at establishing Century as a survivor when industry conditions improve. To this end, we have curtailed a significant portion of our U.S. capacity and have meaningfully improved the Company's financial liquidity. We are committed to taking additional actions to improve our position further and are hard at work on a number of fronts. Looking to the future, we continue to evaluate a path forward for the Helguvik, Iceland, greenfield smelter. This project remains an outstanding future growth opportunity that will ultimately benefit from reductions in construction costs that have resulted from the global economic downturn."

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.

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,
                                                   -----------------------
                                                      2009         2008
                                                   ----------   ----------
                                                                    As
                                                                 Adjusted
NET SALES:
  Third-party customers                            $  170,414   $  356,893
  Related parties                                      54,173      114,249
                                                   ----------   ----------
                                                      224,587      471,142
COST OF GOODS SOLD                                    296,948      375,147
                                                   ----------   ----------
GROSS PROFIT (LOSS)                                   (72,361)      95,995
OTHER OPERATING EXPENSES                               24,332            -
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES           10,120       18,866
                                                   ----------   ----------
OPERATING INCOME (LOSS)                              (106,813)      77,129
INTEREST EXPENSE - Net                                 (7,318)      (5,509)
INTEREST INCOME - RELATED PARTIES                         142            -
NET LOSS ON FORWARD CONTRACTS                          (3,602)    (448,308)
OTHER EXPENSE - Net                                      (242)        (533)
                                                   ----------   ----------
LOSS BEFORE INCOME TAXES AND EQUITY
 IN EARNINGS OF JOINT VENTURES                       (117,833)    (377,221)
INCOME TAX BENEFIT                                      4,096      138,892
                                                   ----------   ----------
LOSS BEFORE EQUITY IN EARNINGS OF JOINT VENTURES     (113,737)    (238,329)
EQUITY IN EARNINGS (LOSSES) OF JOINT VENTURES            (887)       4,393
                                                   ----------   ----------
NET LOSS                                           $ (114,624)  $ (233,936)
                                                   ==========   ==========
LOSS PER COMMON SHARE
  Basic - Net loss                                 $    (1.77)  $    (5.70)
  Diluted - Net loss                               $    (1.77)  $    (5.70)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
  Basic                                                64,608       41,040
  Diluted                                              64,608       41,040
                         Century Aluminum Company
                        Consolidated Balance Sheets
                          (Dollars in Thousands)
                                (Unaudited)
                                                  March 31,    December 31,
ASSETS                                               2009          2008
                                                 -----------   -----------
Current Assets:                                                As Adjusted
  Cash                                           $   267,492   $   129,400
  Restricted cash                                        865           865
  Short-term investments                                   -        13,686
  Accounts receivable - net                           34,517        60,859
  Due from affiliates                                 12,158        39,062
  Inventories                                        112,753       138,111
  Prepaid and other current assets                    23,557        99,861
  Deferred taxes - current portion                         -        32,290
                                                 -----------   -----------
     Total current assets                            451,342       514,134
Property, plant and equipment - net                1,329,956     1,340,037
Intangible asset - net                                28,490        32,527
Due from affiliates - less current portion             7,599         7,599
Other assets                                         160,642       141,061
                                                 -----------   -----------
     Total                                       $ 1,978,029   $ 2,035,358
                                                 ===========   ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
  Accounts payable, trade                        $    80,189   $   102,143
  Due to affiliates                                   62,920        70,957
  Accrued and other current liabilities               64,172        58,777
  Accrued employee benefits costs - current
   portion                                            12,070        12,070
  Convertible senior notes                           154,691       152,700
  Industrial revenue bonds                             7,815         7,815
                                                 -----------   -----------
     Total current liabilities                       381,857       404,462
                                                 -----------   -----------
Senior unsecured notes payable                       250,000       250,000
Revolving credit facility                                  -        25,000
Accrued pension benefit costs - less current
 portion                                              49,336        50,008
Accrued postretirement benefits costs - less
 current portion                                     180,464       219,539
Other liabilities                                     42,023        33,464
Deferred taxes                                        65,443        71,805
                                                 -----------   -----------
    Total noncurrent liabilities                     587,266       649,816
                                                 -----------   -----------
Shareholders' Equity:
  Preferred stock (one cent par value, 5,000,000
   shares authorized; 153,555 shares outstanding
   at March 31, 2009 and 155,787 at
   December 31, 2008)                                      2             2
  Common stock (one cent par value, 100,000,000
   shares authorized; 74,139,488 shares outstanding
   at March 31, 2009 and 49,052,692 at
   December 31, 2008)                                    741           491
  Additional paid-in capital                       2,377,310     2,272,128
  Accumulated other comprehensive loss              (100,190)     (137,208)
  Accumulated deficit                             (1,268,957)   (1,154,333)
                                                 -----------   -----------
     Total shareholders' equity                    1,008,906       981,080
                                                 -----------   -----------
     Total                                       $ 1,978,029   $ 2,035,358
                                                 ===========   ===========
                         Century Aluminum Company
                  Consolidated Statements of Cash Flows
                          (Dollars in Thousands)
                                (Unaudited)
                                                     Three months ended
                                                         March 31,
                                                 -------------------------
                                                     2009          2008
                                                 -----------   -----------
CASH FLOWS FROM OPERATING ACTIVITIES:                          As Adjusted
   Net loss                                      $  (114,624)  $  (233,936)
   Adjustments to reconcile net loss to net cash
    provided by operating activities:
     Unrealized net loss on forward contracts          1,817       395,930
     Accrued plant curtailment costs                  18,235             -
     Depreciation and amortization                    20,845        20,785
     Lower of cost or market inventory
      adjustment                                       2,271             -
     Deferred income taxes                            25,548      (144,331)
     Pension and other postretirement benefits         4,112         4,177
     Stock-based compensation                            (90)        8,470
     Excess tax benefits from share-based
      compensation                                         -          (499)
     Undistributed earnings of joint ventures            887        (4,393)
     Change in operating assets and liabilities:
          Accounts receivable - net                   26,342        (6,356)
          Purchase of short-term trading
           securities                                      -      (108,536)
          Sale of short-term trading securities       13,686       127,450
          Due from affiliates                         26,904        (8,513)
          Inventories                                  4,761       (12,802)
          Prepaid and other current assets            74,187         2,710
          Accounts payable, trade                    (12,201)       12,797
          Due to affiliates                           (8,037)       24,542
          Accrued and other current liabilities       (9,887)      (18,974)
          Other - net                                    (20)          329
                                                 -----------   -----------
     Net cash provided by operating activities        74,736        58,850
                                                 -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of property, plant and equipment          (9,184)       (8,915)
   Nordural expansion                                 (6,501)       (7,389)
                                                 -----------   -----------
     Net cash used in investing activities           (15,685)      (16,304)
                                                 -----------   -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Repayment under revolving credit facility         (25,000)            -
   Excess tax benefits from share
    based-compensation                                     -           499
   Issuance of common stock - net of issuance
    costs                                            104,041         1,543
                                                 -----------   -----------
     Net cash provided by financing activities        79,041         2,042
                                                 -----------   -----------
NET INCREASE IN CASH                                 138,092        44,588
CASH, BEGINNING OF PERIOD                            129,400        60,962
                                                 -----------   -----------
CASH, END OF PERIOD                              $   267,492   $   105,550
                                                 ===========   ===========
                         Century Aluminum Company
                          Selected Operating Data
                                (Unaudited)
                       SHIPMENTS - PRIMARY ALUMINUM
                         Direct (1)                       Toll
                ----------------------------- -----------------------------
                 Metric    (000)               Metric    (000)     (000)
                  Tons     Pounds   $/Pound     Tons     Pounds   Revenue
                --------- --------- --------- --------- --------- ---------
2009
1st Quarter        97,392   214,712 $    0.72    68,096   150,126 $  71,048
2008
1st Quarter       133,004   293,223 $    1.17    66,717   147,086 $ 127,177
(1) Does not include Toll shipments from Nordural Grundartangi

Contacts:
Mike Dildine (media)
831-642-9364
Shelly Lair (investors)
831-642-9357

Certified Advisors for the First North market of the OMX Nordic Exchange
Iceland hf. for Global Depositary Receipts in Iceland:
Helga Gunnarsdottir
Director-Corporate Finance
NBI hf.
Astros Vidarsdottir
Senior Manager-Corporate Finance
NBI hf.


SOURCE: Century Aluminum Company


Copyright 2009 Market Wire, All rights reserved.

News Provided by COMTEX


Close window | Back to top

Copyright 2017 Century Aluminum Company