In the second quarter of 2010, the company reported net earnings of
Sales in the second quarter of 2011 were
For the first half of 2011, the company reported net income of
Sales in the first six months of 2011 were
"Aluminum market conditions have remained generally stable during the last few months," commented
"We have made good progress across the rest of the company," concluded
Cautionary Statement
This press release contains "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, including, without limitation, declines in aluminum prices or increases in our operating costs; deterioration of global financial and economic conditions; increases in global aluminum inventories and the addition of additional global aluminum production capacity; additional delays in the completion of our Helguvik,
Century Aluminum Company Consolidated Statements of Operations (in Thousands, Except Per Share Amounts) (Unaudited) Three months ended Six months ended June 30, June 30, -------------------- -------------------- 2011 2010 2011 2010 --------- --------- --------- --------- NET SALES: Third-party customers $ 207,091 $ 183,045 $ 395,403 $ 375,977 Related parties 159,186 104,808 297,211 197,265 --------- --------- --------- --------- 366,277 287,853 692,614 573,242 COST OF GOODS SOLD 316,763 266,337 600,784 517,750 --------- --------- --------- --------- GROSS PROFIT 49,514 21,516 91,830 55,492 OTHER OPERATING EXPENSES (INCOME) - NET (5,205) 4,644 (11,089) 9,109 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 18,557 10,964 29,166 23,215 --------- --------- --------- --------- OPERATING INCOME 36,162 5,908 73,753 23,168 INTEREST EXPENSE - THIRD PARTY - NET (6,321) (6,255) (12,943) (12,552) INTEREST INCOME - RELATED PARTY 70 111 183 220 NET GAIN (LOSS) ON FORWARD CONTRACTS (1,617) 9,294 (6,426) 7,322 OTHER INCOME (EXPENSE) - NET (1,132) 230 (455) 638 --------- --------- --------- --------- INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURES 27,162 9,288 54,112 18,796 INCOME TAX EXPENSE (3,636) (4,619) (6,759) (8,900) --------- --------- --------- --------- INCOME BEFORE EQUITY IN EARNINGS OF JOINT VENTURES 23,526 4,669 47,353 9,896 EQUITY IN EARNINGS OF JOINT VENTURES 460 477 1,679 1,582 --------- --------- --------- --------- NET INCOME $ 23,986 $ 5,146 $ 49,032 $ 11,478 ========= ========= ========= ========= NET INCOME ALLOCATED TO COMMON SHAREHOLDERS $ 22,061 $ 4,723 $ 45,066 $ 10,532 EARNINGS PER COMMON SHARE Basic and Diluted $ 0.24 $ 0.05 $ 0.48 $ 0.11 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic 93,105 92,672 93,036 92,611 Diluted 93,567 93,332 93,432 93,218 Century Aluminum Company Consolidated Balance Sheets (Dollars in Thousands) (Unaudited) June 30, December 31, ASSETS 2011 2010 ------------- ------------- Current Assets: Cash and cash equivalents $ 232,401 $ 304,296 Restricted cash - 3,673 Accounts receivable - net 54,838 43,903 Due from affiliates 37,264 51,006 Inventories 187,388 155,908 Prepaid and other current assets 46,151 18,292 ------------- ------------- Total current assets 558,042 577,078 Property, plant and equipment - net 1,238,651 1,256,970 Due from affiliates - less current portion 3,094 6,054 Other assets 100,055 82,954 ------------- ------------- Total $ 1,899,842 $ 1,923,056 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable, trade $ 87,595 $ 88,004 Due to affiliates 39,548 45,381 Accrued and other current liabilities 49,225 41,495 Accrued employee benefits costs - current portion 15,909 26,682 Convertible senior notes - 45,483 Industrial revenue bonds 7,815 7,815 ------------- ------------- Total current liabilities 200,092 254,860 ------------- ------------- Senior notes payable 249,011 248,530 Accrued pension benefits costs - less current portion 38,518 37,795 Accrued postretirement benefits costs - less current portion 106,718 103,744 Other liabilities 41,662 37,612 Deferred taxes 86,019 85,999 ------------- ------------- Total noncurrent liabilities 521,928 513,680 ------------- ------------- Shareholders' Equity: Series A Preferred stock (one cent par value, 5,000,000 shares authorized; 80,785 and 82,515 shares issued and outstanding atJune 30, 2011 andDecember 31, 2010 , respectively) 1 1 Common stock (one cent par value, 195,000,000 shares authorized; 93,214,667 and 92,771,864 shares issued and outstanding atJune 30, 2011 and December 31, 2010, respectively) 932 928 Additional paid-in capital 2,506,435 2,503,907 Accumulated other comprehensive loss (78,234) (49,976) Accumulated deficit (1,251,312) (1,300,344) ------------- ------------- Total shareholders' equity 1,177,822 1,154,516 ------------- ------------- Total $ 1,899,842 $ 1,923,056 ============= ============= Century Aluminum Company Consolidated Statements of Cash Flows (Dollars in Thousands) (Unaudited) Six months ended June 30, 2011 2010 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 49,032 $ 11,478 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Unrealized net loss (gain) on forward contracts 6,170 (7,568) Realized benefit of contractual receivable - 32,193 Accrued and other plant curtailment costs - net (16,592) (2,576) Lower of cost or market inventory adjustment (16) 6,999 Depreciation and amortization 31,064 31,505 Debt discount amortization 1,355 1,548 Deferred income taxes - 9,217 Pension and other postretirement benefits (28,608) 8,218 Stock-based compensation 2,501 2,163 Non-cash loss on early extinguishment of debt 763 - Undistributed earnings of joint ventures (1,679) (1,582) Change in operating assets and liabilities: Accounts receivable - net (10,935) 1,013 Due from affiliates 11,265 (16,671) Inventories (31,464) (11,162) Prepaid and other current assets (28,991) 20,423 Accounts payable, trade (1,202) (6,725) Due to affiliates (5,834) 621 Accrued and other current liabilities 7,575 (2,189) Other - net (539) (4,773) --------- --------- Net cash provided by (used in) operating activities (16,135) 72,132 --------- --------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (7,353) (3,012) Nordural expansion (7,968) (10,113) Investments in and advances to joint ventures - (17) Payment received on advances from joint ventures 3,056 - Proceeds from sale of property, plant and equipment 56 - Restricted and other cash deposits 3,673 (983) --------- --------- Net cash used in investing activities (8,536) (14,125) --------- --------- CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of debt (47,067) - Repayment of contingent obligation (189) - Issuance of common stock - net 32 23 --------- --------- Net cash provided by (used in) financing activities (47,224) 23 --------- --------- CHANGE IN CASH AND CASH EQUIVALENTS (71,895) 58,030 CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD 304,296 198,234 --------- --------- CASH AND CASH EQUIVALENTS, END OF THE PERIOD $ 232,401 $ 256,264 ========= ========= 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 ---------------- 2nd Quarter 84,509 186,310 $ 1.26 66,974 147,652 $ 132,113 1st Quarter 80,479 177,426 1.17 63,699 140,432 117,658 --------- --------- --------- --------- --------- --------- Year to Date 164,988 363,736 $ 1.22 130,673 288,084 $ 249,771 ========= ========= ========= ========= ========= ========= 2010 ---------------- 2nd Quarter 76,521 168,700 $ 1.04 68,059 150,043 $ 112,523 1st Quarter 76,653 168,990 1.04 68,024 149,968 109,659 --------- --------- --------- --------- --------- --------- Year to Date 153,174 337,690 $ 1.04 136,083 300,011 $ 222,182 ========= ========= ========= ========= ========= ========= (1) Does not include Toll shipments from Nordural Grundartangi
Contacts:Mike Dildine (media) 831-642-9364Shelly Harrison (investors) 831-642-9357
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