April 27, 2010

Century Reports First Quarter 2010 Earnings

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


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