MONTEREY, CA--(Marketwire - July 24, 2007) - Century Aluminum Company (NASDAQ:
CENX) reported a net loss of $60.7 million ($1.77 per basic and diluted share)
for the second quarter of 2007. Reported second quarter results were negatively
impacted by an after-tax charge of $125.1 million ($3.66 per basic share) for
mark-to-market adjustments on forward contracts that do not qualify for cash
flow hedge accounting and by a non-cash after-tax charge of $2.0 million ($0.06
per basic share) for the early extinguishment of debt. Quarterly results were
positively impacted by a tax benefit of $4.3 million ($0.13 per basic share)
related to the increase 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 $0.13.
In the second quarter of 2006, the company reported net income of $45.8 million
($1.41 per basic share and $1.35 per diluted share), which included an
after-tax charge of $19.5 million ($0.60 per basic share and $0.57 per diluted
share) for mark-to-market adjustments on forward contracts that do not qualify
for cash flow hedge accounting.
Second quarter 2007 highlights included:
Strong operating earnings were generated on revenues of $464.0 million,
which increased 3.7 percent from record levels set in the first quarter of
2007.
All primary aluminum facilities operated at or above capacity.
The first cells of the 40,000 tonne expansion of the Grundartangi, Iceland
smelter were energized on July 2. The project remains on schedule and budget
for a fourth quarter, 2007 completion.
Century signed a definitive agreement with Icelandic electric power
suppliers Hitaveita Sudurnesja and Orkuveita Reykjavikur for the supply of
electrical power to the new aluminum smelter project to be built near
Helguvik, Iceland. These contracts provide for the supply of power for
approximately 250,000 tonnes of aluminum production.
A memorandum of understanding was signed with the Guangxi Investment Group
Company to explore the feasibility of developing a project including a high
purity aluminum reduction plant and related bauxite and alumina facilities in
the Guangxi Zhuang Autonomous Region in China.
Sales in the second quarter of 2007 were $464.0 million, compared with
$406.0 million in the second quarter of 2006. Shipments of primary aluminum for
the quarter totaled 188,650 tonnes compared with 171,715 tonnes in the year-ago
quarter, reflecting the impact of the Grundartangi expansion to 220,000 tonnes,
which was completed in the fourth quarter of 2006.
For the first half of 2007, the company reported net income of $3.6 million
($0.11 per basic and $0.10 per diluted share), which includes an after-tax
charge of $125.1 million ($3.75 per basic share) for mark-to-market adjustments
on forward contracts that do not qualify for cash flow hedge accounting. The
dilutive effect of the convertible notes, options and performance shares would
reduce basic EPS for the first half of 2007 by $0.24 per share. This result
compares with a net loss of $95.8 million ($2.96 per basic and diluted share)
in the year-ago period, which included an after-tax charge of $203.0 million
($6.28 per basic share) for mark-to-market adjustments on forward contracts
that do not qualify for cash flow hedge accounting. The dilutive effect of the
convertible notes, options and service-based awards would reduce basic EPS for
the first half of 2006 by $0.14 per share.
Sales in the first six months of 2007 were $911.7 million compared with $752.9
million in the same period of 2006. Shipments of primary aluminum for the first
six months of 2007 were 373,272 tonnes compared with 328,666 tonnes for the
comparable 2006 period.
"We made important progress on our long-term initiatives during the quarter,"
said president and chief executive officer Logan W. Kruger. "The continuing
expansion of Grundartangi remains on schedule and budget. At our Helguvik
greenfield project, we signed contracts with each of our two power supply
partners and advanced the various permitting processes. In addition, we raised
equity capital for the plant's construction and became the first U.S. company
to list its shares on the stock exchange in Iceland."
Century Aluminum's quarterly conference call is scheduled for 5:30 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.
Contacts:
Mike Dildine (media)
831-642-9364
Shelly Lair (investors)
831-642-9357
