Century Reports 2006 Financial Results

Century Aluminum Company (NASDAQ: CENX) today reported a net loss of $119.1 million ($3.67 per basic and diluted share) for the fourth quarter of 2006. Reported fourth quarter results were impacted by a net after-tax charge of $174.3 million ($5.37 per basic share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting and by a gain on the sale of surplus land. The dilutive effect of the convertible notes, options and performance shares would reduce Basic EPS by $0.06 per share.

For the fourth quarter of 2005, the company reported a net loss of $148.7 million ($4.62 per basic and diluted share). Reported results for this quarter were impacted by an after-tax charge of $164.6 million ($5.12 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 options and performance shares would reduce Basic EPS by $0.01 per share.

Recent highlights include:

--  2006 was a record year for primary aluminum shipments (up 10 percent
    over 2005), net sales (up 38 percent), operating income (up 144 percent)
    and net cash provided by operations (up 37 percent).
--  The expansion of the Grundartangi, Iceland plant to 220,000 tonnes was
    completed in December, on schedule and on budget.
--  The further expansion of Grundartangi to 260,000 tonnes is proceeding
    on schedule and on budget.
--  Hawesville achieved record production and safety results in 2006.
--  Ravenswood, which was impacted by a labor-related potline shutdown in
    August, is now operating normally.
--  We continue to make progress on the Helguvik greenfield project.
    

For 2006, Century reported a net loss of $41.0 million ($1.26 per basic and diluted share). Total year results include a net after-tax charge of $241.7 million ($7.46 per basic share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting and by a gain on the sale of surplus land. The dilutive effect of the convertible notes, options and performance shares would reduce Basic EPS by $0.17 per share.

For 2005, the company reported a net loss of $116.3 million ($3.62 per basic and diluted share). Reported results for this year were impacted by an after-tax charge of $198.2 million ($6.17 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 options and performance shares would reduce Basic EPS by $0.01 per share.

Sales for the fourth quarter of 2006 were $424.4 million compared with $292.9 million for the fourth quarter of 2005. Shipments of primary aluminum for the 2006 fourth quarter were 181,675 tonnes, compared with 156,015 tonnes shipped in the year-ago quarter.

Sales for 2006 were $1.6 billion compared with $1.1 billion for 2005, and total 2006 primary aluminum shipments of 679,939 tonnes compared with 615,842 tonnes shipped in 2005.

"In a year of robust commodity markets, we achieved important milestones and posted record results," said president and chief executive officer Logan W. Kruger. "We concluded labor contracts with the United Steelworkers at both of our operated U.S. smelters. The innovative agreement with the power provider at Ravenswood provides for shared gains at today's metal prices and an acceptable rate during lower market environments. Hawesville achieved the highest production in the plant's 36-year history.

"At Nordural, we completed a major brownfield expansion from 90,000 to 220,000 tonnes on schedule and budget. We secured the energy required to accelerate a further expansion to 260,000 tonnes from late 2008 to the fourth quarter of 2007; this project also remains on schedule and on budget. We achieved a significant milestone for our Helguvik greenfield venture when we signed a memorandum of understanding with Iceland's two major geothermal power providers to purchase electrical energy for the project.

"I am pleased with the performance of the entire Century team. We enter 2007 as a larger and more competitive company, well positioned for further profitable growth."

Century Aluminum Company owns primary aluminum capacity in the United States and Iceland, as well as an ownership 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 5:30 p.m. Eastern time today. To listen to the conference call and to view related presentation materials, go to www.centuryca.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            Year ended
                              December 31,              December 31,
                            2006         2005         2006         2005
                        -----------  -----------  -----------  -----------
NET SALES:
     Third-party
      customers         $   332,282  $   247,770  $ 1,299,035  $   961,335
     Related parties         92,085       45,104      259,531      171,027
                        -----------  -----------  -----------  -----------
                            424,367      292,874    1,558,566    1,132,362

COST OF GOODS SOLD          331,291      258,170    1,210,044      970,685
                        -----------  -----------  -----------  -----------

GROSS PROFIT                 93,076       34,704      348,522      161,677

SELLING, GENERAL AND
 ADMINISTRATIVE
 EXPENSES                    10,724        9,827       39,363       34,773
                        -----------  -----------  -----------  -----------

OPERATING INCOME             82,352       24,877      309,159      126,904

INTEREST EXPENSE - Net      (10,272)      (5,976)     (35,297)     (24,301)
NET LOSS ON FORWARD
 CONTRACTS                 (282,891)    (257,218)    (389,839)    (309,698)
LOSS ON EARLY
 EXTINGUISHMENT OF DEBT           -            -            -         (835)
OTHER INCOME (EXPENSE)
 - Net                        7,019         (428)       6,898          275
                        -----------  -----------  -----------  -----------
LOSS BEFORE INCOME
 TAXES AND EQUITY
 IN EARNINGS OF JOINT
 VENTURES                  (203,792)    (238,745)    (109,079)    (207,655)

INCOME TAX BENEFIT           79,716       88,275       52,041       80,697
                        -----------  -----------  -----------  -----------

LOSS BEFORE EQUITY IN
 EARNINGS OF JOINT
 VENTURES                  (124,076)    (150,470)     (57,038)    (126,958)

EQUITY IN EARNINGS OF
 JOINT VENTURES               4,953        1,812       16,083       10,703
                        -----------  -----------  -----------  -----------

NET LOSS                $  (119,123) $  (148,658) $   (40,955) $  (116,255)
                        ===========  ===========  ===========  ===========


LOSS PER COMMON SHARE
    Basic - Net loss    $     (3.67) $     (4.62) $     (1.26) $     (3.62)
    Diluted - Net loss  $     (3.67) $     (4.62) $     (1.26) $     (3.62)

WEIGHTED AVERAGE COMMON
 SHARES OUTSTANDING
     Basic                   32,457       32,181       32,395       32,136
     Diluted                 32,457       32,181       32,395       32,136




                           Century Aluminum Company
                          Consolidated Balance Sheets
                             (Dollars in Thousands)
                                  (Unaudited)



                                             December 31,    December 31,
                                                 2006            2005
ASSETS                                      --------------  --------------
Current Assets:
     Cash                                   $       96,365  $       17,752
     Restricted cash                                 2,011           2,028
     Accounts receivable - net                     113,371          83,016
     Due from affiliates                            37,542          18,638
     Inventories                                   145,410         111,436
     Prepaid and other current assets               19,830          23,918
     Deferred taxes - current portion              103,110          37,705
                                            --------------  --------------
          Total current assets                     517,639         294,493
Property, plant and equipment - net              1,218,777       1,070,158
Intangible assets - net                             61,594          74,643
Goodwill                                            94,844          94,844
Other assets                                       292,380         143,293
                                            --------------  --------------
          Total                             $    2,185,234  $    1,677,431
                                            ==============  ==============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
     Accounts payable, trade                $       64,849  $       61,919
     Due to affiliates                             282,282         158,682
     Accrued and other current liabilities          75,143          53,715
     Long-term debt - current portion               30,105             581
     Accrued employee benefits costs -
      current portion                               11,083           9,333
     Convertible senior notes                      175,000         175,000
     Industrial revenue bonds                        7,815           7,815
                                            --------------  --------------
          Total current liabilities                646,277         467,045
                                            --------------  --------------

Senior unsecured notes payable - net               250,000         250,000
Nordural debt                                      309,331         230,436
Revolving credit facility                                -           8,069
Accrued pension benefits costs - less
 current portion                                    19,239          10,350
Accrued postretirement benefits costs -
 less current portion                              206,415          96,660
Due to affiliates - less current portion           554,864         337,416
Other liabilities                                   27,811          28,010
Deferred taxes                                      41,587          16,890
                                            --------------  --------------
          Total noncurrent liabilities           1,409,247         977,831
                                            --------------  --------------

Shareholders' Equity:
     Common stock (one cent par value,
      100,000,000 shares authorized;
      32,457,670 shares outstanding at
      December 31, 2006, and 32,188,165
      at December 31, 2005)                            325             322
     Additional paid-in capital                    432,270         419,009
     Accumulated other comprehensive loss         (166,572)        (91,418)
     Accumulated deficit                          (136,313)        (95,358)
                                            --------------  --------------
          Total shareholders' equity               129,710         232,555
                                            --------------  --------------
          Total                             $    2,185,234  $    1,677,431
                                            ==============  ==============



                          Century Aluminum Company
                    Consolidated Statements of Cash Flows
                           (Dollars in Thousands)
                                 (Unaudited)


                                                      Year ended
                                                     December 31,
                                                 2006            2005
                                            --------------  --------------

CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                 $      (40,955) $     (116,255)
   Adjustments to reconcile net income to
    net cash provided by operating activities:
     Unrealized net loss on forward contracts      333,081         306,756
     Depreciation and amortization                  69,220          56,533
     Deferred income taxes                        (126,342)        (59,834)
     Pension and other postretirement
      benefits                                      14,561          12,381
     Workers' compensation                             987          (1,572)
     Stock-based compensation                        5,694               -
     Excess tax benefits from share-based
      compensation                                  (1,394)              -
     Gain on disposal of assets                     (6,851)            (32)
     Non cash loss on early extinguishment
      of debt                                            -             253
     Change in operating assets and
      liabilities:
          Accounts receivable - net                (30,355)         (3,440)
          Due from affiliates                      (18,904)         (4,267)
          Inventories                              (28,524)           (152)
          Prepaid and other current assets              89         (10,092)
          Accounts payable, trade                    9,608           8,528
          Due to affiliates                          9,701             920
          Accrued and other current
           liabilities                              18,965         (32,664)
          Other - net                              (23,228)        (22,127)
                                            --------------  --------------
     Net cash provided by operating
      activities                                   185,353         134,936
                                            --------------  --------------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of property, plant and
    equipment                                      (23,602)        (18,027)
   Divestitures                                          -               -
   Nordural expansion                             (193,511)       (280,086)
   Proceeds from sale of property, plant
    and equipment                                    7,759             124
   Restricted and other cash deposits               (2,583)           (350)
   Business acquisitions, net of cash
    acquired                                             -          (7,000)
                                            --------------  --------------
     Net cash used in investing activities        (211,937)       (305,339)
                                            --------------  --------------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Borrowings of long-term debt                    109,000         222,937
   Repayment of long-term debt                        (581)        (83,279)
   Net borrowings (repayments) under
    revolving credit facility                       (8,069)          8,069
   Financing fees                                        -          (5,132)
   Excess tax benefits from share-based
    compensation                                     1,394               -
   Dividends                                             -             (16)
   Issuance of common stock                          3,453           1,408
                                            --------------  --------------
     Net cash provided by financing
      activities                                   105,197         143,987
                                            --------------  --------------

NET INCREASE (DECREASE) IN CASH                     78,613         (26,416)

CASH, BEGINNING OF PERIOD                           17,752          44,168
                                            --------------  --------------

CASH, END OF PERIOD                         $       96,365  $       17,752
                                            ==============  ==============




                             Century Aluminum Company
                             Selected Operating Data
                                   (Unaudited)

                             SHIPMENTS - PRIMARY ALUMINUM

                         Direct (1)                       Toll
                ----------------------------- -----------------------------
                  Metric    (000)               Metric    (000)    (000)
                   Tons    Pounds   $/Pound      Tons    Pounds   Revenue
                --------- --------- --------- --------- --------- ---------
  2006
  ----
  4th Quarter     131,041   288,895 $    1.12    50,634   111,630 $ 100,847
  3rd Quarter     126,810   279,568 $    1.07    42,788    94,331 $  81,424
  2nd Quarter     132,590   292,311 $    1.12    39,125    86,255 $  77,702
  1st Quarter     132,378   291,843 $    1.03    24,573    54,174 $  45,166
                --------- --------- --------- --------- --------- ---------
  Total           522,819 1,152,617 $    1.09   157,120   346,390 $ 305,139

  2005
  ----
  4th Quarter     132,713   292,581 $    0.88    23,302    51,372 $  35,703
  3rd Quarter     129,555   285,619 $    0.83    23,435    51,665 $  33,175
  2nd Quarter     130,974   288,748 $    0.86    23,025    50,761 $  34,174
  1st Quarter     130,083   286,783 $    0.88    22,756    50,168 $  33,372
                --------- --------- --------- --------- --------- ---------
  Total           523,324 1,153,731 $    0.86    92,518   203,966 $ 136,424

(1) Does not include Toll shipments from Nordural



                FORWARD PRICED SALES - As of December 31, 2006

                        2007(1)(2) 2008(2)  2009(2)  2010(2)  2011-2015(2)
                        ---------  -------  -------  -------  ------------
  Base Volume
       Pounds (000)       380,160  240,745  231,485  231,485       826,733
       Metric Tons        172,438  109,200  105,000  105,000       375,000
       Percent of
        estimated
        capacity               22%      14%      13%      13%            9%

  Potential Additional
   Volume(2)
       Pounds (000)       111,113  220,903  231,485  231,485       826,733
       Metric Tons         50,400  100,200  105,000  105,000       375,000
       Percent of
        estimated
        capacity                7%      12%      13%      13%            9%


(1) The forward priced sales in 2007 exclude January 2007 shipments to
    customers that are priced based upon the prior month's market price.

(2) Certain financial sales contracts included in the forward priced sales
    base volume for the period 2007 through 2015 contain clauses that
    trigger potential additional sales volume when the market price for a
    contract month is above the base contract ceiling price.  These
    contracts will be settled monthly and, if the market price exceeds the
    ceiling price for all contract months through 2015, the potential
    additional sales volume would be equivalent to the amounts shown above.


Contacts:

Mike Dildine (media)
831-642-9364

Shelly Lair (investors)
831-642-9357

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