May 3, 2011

Century Reports First Quarter 2011 Earnings

MONTEREY, CA -- (MARKET WIRE) -- 05/03/11 -- Century Aluminum Company (NASDAQ: CENX) today reported net income of $25.0 million ($0.25 per basic and diluted share) for the first quarter of 2011. Financial results were negatively impacted by a mark-to-market loss on forward contracts of $4.8 million, primarily related to LME price protection options. Changes to the Century of West Virginia retiree medical benefits program increased quarterly results by $9.4 million with an associated discrete tax benefit of $2.1 million. Cost of sales for the quarter includes a $6.4 million charge for the restart of a curtailed potline at the Hawesville, KY smelter.

For the first quarter of 2010, Century reported net income of $6.3 million ($0.06 per basic and diluted share). Cost of sales for the quarter included 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.

Sales for the first quarter of 2011 were $326.3 million, compared with $285.4 million for the first quarter of 2010. Shipments of primary aluminum for the 2011 first quarter were 144,178 tonnes, compared with 144,677 tonnes shipped in the year-ago quarter.

"Over the last several months we have witnessed a continuation of the generally attractive market conditions with which the year began," remarked Logan W. Kruger, President and Chief Executive Officer. "Industrial activity, driven by increasing consumer wealth, remains strong in China, India and other rapidly developing countries. Regional premiums for metal are at or near record levels, reflecting tight market conditions due to a variety of factors. On the supply side, the environment has become less conducive for the construction of new capacity, especially in those regions which have provided most of the recent growth in our sector. We are closely monitoring inflationary pressures and geopolitical conditions, both of which represent short and longer-term risks that are difficult to assess. On balance, we are reasonably optimistic with regard to market conditions in the foreseeable future."

"We made good progress this quarter," continued Mr. Kruger. "The team at Hawesville successfully restarted the potline curtailed during the financial crisis; we expect to return to full production during the third quarter. At Grundartangi, the reinstallation of the damaged transformer has allowed us to return to full amperage. We are moving forward on modest capital improvement programs at both plants. Finally, we continue to expend significant time and effort in the complex processes required for the restart of major construction activity at Helguvik."

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 and comments made by Century management on the quarterly conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements about future, not past, events and involve certain important risks and uncertainties, any of which could cause our actual results to differ materially from those expressed in our forward-looking statements. Such risks and uncertainties may include, without limitation, declines in aluminum prices or increases in our operating costs; increasing inflation or other worsening of global financial and economic conditions; increases in global aluminum inventories and the addition of new or restarted global aluminum production capacity; additional delays in the completion of our Helguvik, Iceland smelter; our ability to successfully progress the potential restart of our Ravenswood smelter and implement growth programs at Grundartangi and Hawesville; and our ability to successfully implement measures to protect Century during economic down cycles. More information about these risks, uncertainties and assumptions can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K and in other filings made with the Securities and Exchange Commission. We do not undertake, and specifically disclaim, any obligation to revise any forward-looking statements to reflect the occurrence of future events or circumstances.



                        Century Aluminum Company

                  Consolidated Statements of Operations

                 (in Thousands, Except Per Share Amounts)

                                (Unaudited)





                                                       Three months ended

                                                            March 31,

                                                      --------------------

                                                        2011       2010

                                                      ---------  ---------

NET SALES:

     Third-party customers                            $ 188,312  $ 192,932

     Related parties                                    138,025     92,457

                                                      ---------  ---------

                                                        326,337    285,389



COST OF GOODS SOLD                                      284,021    251,413

                                                      ---------  ---------



GROSS PROFIT                                             42,316     33,976



OTHER OPERATING EXPENSES (INCOME) - NET                  (5,884)     4,465

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES             10,609     12,251

                                                      ---------  ---------



OPERATING INCOME                                         37,591     17,260



INTEREST EXPENSE - THIRD PARTY - Net                     (6,622)    (6,297)

INTEREST INCOME - RELATED PARTY                             113        109

NET LOSS ON FORWARD CONTRACTS                            (4,809)    (1,972)

OTHER INCOME  - Net                                         677        408

                                                      ---------  ---------

INCOME BEFORE INCOME TAXES AND EQUITY

 IN EARNINGS OF JOINT VENTURES                           26,950      9,508



INCOME TAX EXPENSE                                       (3,123)    (4,281)

                                                      ---------  ---------



INCOME BEFORE EQUITY IN EARNINGS OF JOINT VENTURES       23,827      5,227



EQUITY IN EARNINGS OF JOINT VENTURES                      1,219      1,105

                                                      ---------  ---------



NET INCOME                                            $  25,046  $   6,332

                                                      =========  =========



Net Income Allocated to Common Shareholders           $  23,005  $   5,808



INCOME PER COMMON SHARE

    Basic                                             $    0.25  $    0.06

    Diluted                                           $    0.25  $    0.06



WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

     Basic                                               92,965     92,550

     Diluted                                             93,297     93,103









                         Century Aluminum Company

                        Consolidated Balance Sheets

                          (Dollars in Thousands)

                                (Unaudited)







                                                  March 31,   December 31,

ASSETS                                               2011         2010

                                                 -----------  ------------

Current Assets:

     Cash and cash equivalents                   $   293,487  $    304,296

     Restricted cash                                   3,673         3,673

     Accounts receivable - net                        36,383        43,903

     Due from affiliates                              39,240        51,006

     Inventories                                     163,971       155,908

     Prepaid and other current assets                 45,520        18,292

                                                 -----------  ------------

          Total current assets                       582,274       577,078

Property, plant and equipment - net                1,246,530     1,256,970

Due from affiliates - less current portion             7,172         6,054

Other assets                                          85,205        82,954

                                                 -----------  ------------

          Total                                  $ 1,921,181  $  1,923,056

                                                 ===========  ============



LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:

     Accounts payable, trade                     $    83,134  $     88,004

     Due to affiliates                                42,660        45,381

     Accrued and other current liabilities            46,535        41,495

     Accrued employee benefits costs - current

      portion                                         15,985        26,682

     Convertible senior notes                         46,068        45,483

     Industrial revenue bonds                          7,815         7,815

                                                 -----------  ------------

          Total current liabilities                  242,197       254,860

                                                 -----------  ------------



Senior notes payable                                 248,765       248,530

Accrued pension benefit costs - less current

 portion                                              36,881        37,795

Accrued postretirement benefits costs - less

 current portion                                     103,712       103,744

Other liabilities                                     34,942        37,612

Deferred taxes                                        85,992        85,999

                                                 -----------  ------------

          Total noncurrent liabilities               510,292       513,680

                                                 -----------  ------------



Shareholders' Equity:

     Series A preferred stock (one cent par

      value, 5,000,000 shares authorized;

      81,255 and 82,515 shares issued and

      outstanding at March 31, 2011

      and December 31, 2010, respectively)                 1             1

     Common stock (one cent par value,

      195,000,000 shares authorized; 93,094,226

      and 92,771,864 shares issued and

      outstanding at March 31, 2011

      and December 31, 2010, respectively)               931           928

     Additional paid-in capital                    2,504,391     2,503,907

     Accumulated other comprehensive loss            (61,333)      (49,976)

     Accumulated deficit                          (1,275,298)   (1,300,344)

                                                 -----------  ------------

          Total shareholders' equity               1,168,692     1,154,516

                                                 -----------  ------------

          Total                                  $ 1,921,181  $  1,923,056

                                                 ===========  ============







                         Century Aluminum Company

                  Consolidated Statements of Cash Flows

                          (Dollars in Thousands)

                                (Unaudited)







                                                       Three months ended

                                                            March 31,

                                                      --------------------

                                                        2011       2010

                                                      ---------  ---------

CASH FLOWS FROM OPERATING ACTIVITIES:

   Net income                                         $  25,046  $   6,332

   Adjustments to reconcile net income to net cash

    provided by (used in) operating activities:

     Unrealized net loss on forward contracts             4,715      1,853

     Unrealized gain on contractual receivable                -        (88)

     Realized benefit of contractual receivable               -     15,368

     Accrued and other plant curtailment costs - net     (9,624)    (2,272)

     Debt discount amortization                             821        766

     Depreciation                                        15,930     15,778

     Lower of cost or market inventory adjustment          (139)       (57)

     Deferred income taxes                                    -      4,319

     Pension and other postretirement benefits          (11,064)     3,666

     Stock-based compensation                               488      1,284

     Undistributed earnings of joint ventures            (1,219)    (1,105)

     Change in operating assets and liabilities:

          Accounts receivable - net                       7,520      2,314

          Due from affiliates                             8,766    (20,760)

          Inventories                                    (7,924)    (9,140)

          Prepaid and other current assets              (29,901)     3,692

          Accounts payable, trade                        (4,730)    (2,223)

          Due to affiliates                              (2,722)     6,601

          Accrued and other current liabilities           3,405      1,423

          Other - net                                    (2,998)    (6,093)

                                                      ---------  ---------

     Net cash provided by (used in) operating

      activities                                         (3,630)    21,658

                                                      ---------  ---------



CASH FLOWS FROM INVESTING ACTIVITIES:

   Purchase of property, plant and equipment             (3,128)      (972)

   Nordural expansion                                    (4,051)    (4,678)

   Investments in and advances to joint ventures              -        (10)

   Restricted and other cash deposits                         -       (493)

                                                      ---------  ---------

     Net cash used in investing activities               (7,179)    (6,153)

                                                      ---------  ---------



CHANGE IN CASH AND CASH EQUIVALENTS                     (10,809)    15,505



CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD          304,296    198,234

                                                      ---------  ---------



CASH AND CASH EQUIVALENTS, END OF PERIOD              $ 293,487  $ 213,739

                                                      =========  =========





                         Century Aluminum Company

                          Selected Operating Data

                                (Unaudited)



                       SHIPMENTS - PRIMARY ALUMINUM





                         Direct (1)                       Toll

                ----------------------------- -----------------------------

                 Metric     (000)              Metric     (000)     (000)

                  Tons     Pounds   $/Pound     Tons     Pounds   Revenue

                --------- --------- --------- --------- --------- ---------

2011

1st Quarter        80,479   177,426 $    1.17    63,699   140,432 $ 117,658



2010

1st Quarter        76,653   168,990 $    1.04    68,024   149,968 $ 109,659





(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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