November 01, 2012 at 16:08 PM EDT
Century Reports Third Quarter 2012 Results

MONTEREY, CA -- (Marketwire) -- 11/01/12 -- Century Aluminum Company (NASDAQ: CENX) reported a net loss of $12.0 million ($0.14 per basic and diluted common share) for the third quarter of 2012. Financial results were positively impacted by a net benefit of $4.1 million related to certain litigation items. Cost of sales for the quarter included an $8.2 million benefit for lower of cost or market inventory adjustments.

In the third quarter of 2011, Century reported a net loss of $6.6 million ($0.07 per basic and diluted share). Financial results were positively impacted by an unrealized net gain on forward contracts of $4.5 million related primarily to aluminum price protection options. Cost of sales for the quarter included a $13.5 million charge for lower of cost or market inventory adjustments.

Sales for the third quarter of 2012 were $304.6 million, compared with $345.6 million for the third quarter of 2011. Shipments of primary aluminum for the 2012 third quarter were 163,431 tonnes, compared with 150,832 tonnes shipped in the year-ago quarter.

For the first nine months of 2012, Century reported a net loss of $28.7 million ($0.32 per basic and diluted share). These results were negatively impacted by an unrealized net loss on forward contracts of $3.2 million primarily related to the mark to market of aluminum price protection options. Results were positively impacted by a net benefit of $4.1 million related to certain litigation items. Cost of sales in the first nine months of 2012 included a $19.8 million benefit for lower of cost or market inventory adjustments.

This result compares to net income of $42.4 million ($0.42 per basic and diluted share) for the first nine months of 2011. These results were negatively impacted by a $7.7 million charge related to the contractual impact of the changes in the Company's Board of Directors and the executive management team; a charge of $2.9 million related to an insurance receivable; an unrealized net loss on forward contracts of $1.6 million primarily related to the mark to market of aluminum price protection options; and a charge of $0.8 million related to the early retirement of debt. Changes to the Century of West Virginia retiree medical benefits program increased nine-month results by $18.3 million with an associated discrete tax benefit of $4.2 million. Cost of sales included an $8.6 million charge related to the restart of a curtailed potline at the Hawesville smelter and a $13.5 million charge for lower of cost or market inventory adjustments.

Sales in the first nine months of 2012 were $954.4 million compared with $1,038.3 million in the same period of 2011. Shipments of primary aluminum for the first nine months of 2012 were 484,226 tonnes compared with 446,493 tonnes for the comparable 2011 period.

"Markets have remained volatile," commented Michael Bless, President and Chief Executive Officer. "The sovereign debt crisis in Europe, uncertainty regarding the U.S. fiscal status during the election cycle and continuing relatively soft economic data reported by China are weighing on investor sentiment generally, and commodities and other risk assets specifically. Despite these factors, our U.S. customer markets remain reasonably strong, though we continue to monitor them closely. In total, market conditions as a whole have remained relatively unchanged for us during the last several months."

"We continue to make progress on our key initiatives," continued Mr. Bless. "Our plants in the U.S. and in Iceland have reached gratifying new levels of safety performance; that said, we continue to implement proactive plans and programs with the objective of continuous improvement toward world-class status in worker safety. We undertook a major step at Hawesville when we delivered a 12-month termination notice to the plant's electric power supplier. We took this step after concluding that the plant is not economically viable under the current power arrangement. We are now working with the relevant constituencies toward an agreement to access wholesale power markets. Given the structural changes taking place in the U.S. fuel and power sectors, we believe this market will yield an attractive solution for the long term. The Hawesville team is performing extremely well, especially in the face of conditions which are presently uncertain. In West Virginia, we have just filed a response to the order issued in early October by the Public Service Commission. We continue to believe a pathway should exist to create a power arrangement to enable a restart of this plant."

Third Quarter 2012 Earnings Conference Call
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, visit www.centuryaluminum.com and click on the conference call link on the homepage. The webcast will be archived on our website and available for replay approximately two hours following the live call.

About Century Aluminum
Century Aluminum Company supplies standard-grade, high-purity and value-added primary aluminum products to diverse downstream manufacturing customers in the aerospace, automotive and energy industries. The Company owns primary aluminum capacity in the U.S. and Iceland. Century's corporate offices are located in Monterey, Calif. Visit www.centuryaluminum.com for more information.

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 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. Such risks and uncertainties may include, without limitation, declines in aluminum prices or increases in our operating costs; worsening of global financial and economic conditions; increases in global aluminum inventories and the addition of new or restarted global aluminum production capacity; weakening of the company's U.S. customer markets; our ability to successfully obtain long-term competitive power arrangements for our U.S. plants, including access to the wholesale power market for Hawesville and a favorable conclusion of the West Virginia Public Service Commission proceedings for Ravenswood; and our ability to successfully progress the potential restart of our Ravenswood smelter. Forward-looking statements in this press release include, without limitation, statements regarding our ability to successfully access wholesale power for our Hawesville smelter and achieve an attractive long-term power solution for the plant; and our ability to obtain a power arrangement that enables a restart of our Ravenswood smelter. 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
              (Dollars in thousands, except per share amounts)
                                (Unaudited)

                                 Three months ended     Nine months ended
                                    September 30,         September 30,
                                   2012       2011       2012       2011
                                ---------  ---------  ---------  ----------
NET SALES:
  Third-party customers         $ 170,023  $ 202,598  $ 542,884  $  598,001
  Related parties                 134,612    143,048    411,560     440,259
                                ---------  ---------  ---------  ----------
                                  304,635    345,646    954,444   1,038,260

  Cost of goods sold              301,385    334,322    924,645     935,106
                                ---------  ---------  ---------  ----------

Gross profit                        3,250     11,324     29,799     103,154

  Other operating expenses
   (income) - net                   7,388      2,659     14,926      (8,430)
  Selling, general and
   administrative expenses          9,182      7,950     24,792      37,116
                                ---------  ---------  ---------  ----------

Operating income (loss)           (13,320)       715     (9,919)     74,468

  Interest expense - third party
   - net                           (5,969)    (5,914)   (17,642)    (18,857)
  Interest income - related
   parties                              -         59         62         242
  Net gain (loss) on forward
   contracts                         (340)     4,163     (4,049)     (2,263)
  Other income (expense) - net      7,648     (1,143)     8,115      (1,598)
                                ---------  ---------  ---------  ----------

Income (loss) before income
 taxes and equity in earnings of
 joint ventures                   (11,981)    (2,120)   (23,433)     51,992

  Income tax expense               (1,168)    (5,387)    (7,384)    (12,146)
                                ---------  ---------  ---------  ----------

Income (loss) before equity in
 earnings of joint ventures       (13,149)    (7,507)   (30,817)     39,846

  Equity in earnings of joint
   ventures                         1,126        907      2,116       2,586
                                ---------  ---------  ---------  ----------

Net income (loss)               $ (12,023) $  (6,600) $ (28,701) $   42,432
                                =========  =========  =========  ==========

Net income (loss) allocated to
 common shareholders            $ (12,023) $  (6,600) $ (28,701) $   39,003

EARNINGS (LOSS) PER COMMON SHARE
  Basic and Diluted             $   (0.14) $   (0.07) $   (0.32) $     0.42

WEIGHTED AVERAGE COMMON SHARES
 OUTSTANDING
  Basic                            88,468     92,032     88,549      92,697
  Diluted                          88,468     92,032     88,549      93,097



                          CENTURY ALUMINUM COMPANY
                        CONSOLIDATED BALANCE SHEETS
                 (Dollars in thousands, except share data)
                                (Unaudited)


                                                September 30,  December 31,
                     ASSETS                          2012          2011
                                                ------------- -------------
Cash and cash equivalents                       $     173,375 $     183,401
Accounts receivable - net                              44,327        47,647
Due from affiliates                                    39,755        44,665
Inventories                                           159,968       171,961
Prepaid and other current assets                       48,253        40,646
                                                ------------- -------------
  Total current assets                                465,678       488,320
Property, plant and equipment - net                 1,197,644     1,218,225
Other assets                                          120,117       104,549
                                                ------------- -------------
  TOTAL                                         $   1,783,439 $   1,811,094
                                                ============= =============

      LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Accounts payable, trade                         $      78,272 $      86,172
Due to affiliates                                      42,665        41,904
Accrued and other current liabilities                  52,913        40,776
Accrued employee benefits costs - current
 portion                                               17,211        16,698
Industrial revenue bonds                                7,815         7,815
                                                ------------- -------------
  Total current liabilities                           198,876       193,365
                                                ------------- -------------

Senior notes payable                                  250,303       249,512
Accrued pension benefits costs - less current
 portion                                               65,151        70,899
Accrued postretirement benefits costs - less
 current portion                                      129,335       128,078
Other liabilities                                      39,720        40,005
Deferred taxes                                         90,403        90,958
                                                ------------- -------------
  Total noncurrent liabilities                        574,912       579,452
                                                ------------- -------------

SHAREHOLDERS' EQUITY:
Series A Preferred stock (one cent par value,
 5,000,000 shares authorized; 80,542 and 80,718
 issued and outstanding at September 30, 2012
 and December 31, 2011, respectively)                       1             1
Common stock (one cent par value, 195,000,000
 shares authorized; 93,272,966 issued and
 88,486,445 outstanding at September 30, 2012;
 93,230,848 issued and 88,844,327 outstanding at
 December 31, 2011)                                       933           932
Additional paid-in capital                          2,507,254     2,506,842
Treasury stock, at cost                               (49,924)      (45,891)
Accumulated other comprehensive loss                 (130,893)     (134,588)
Accumulated deficit                                (1,317,720)   (1,289,019)
                                                ------------- -------------
  Total shareholders' equity                        1,009,651     1,038,277
                                                ------------- -------------
  TOTAL                                         $   1,783,439 $   1,811,094
                                                ============= =============



                          CENTURY ALUMINUM COMPANY
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                           (Dollars in thousands)
                                (Unaudited)


                                                       Nine months ended
                                                         September 30,
                                                       2012         2011
                                                   -----------  -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income (loss)                                $   (28,701) $    42,432
  Adjustments to reconcile net income (loss) to net
   cash provided by operating activities:
    Unrealized net loss on forward contracts             3,196        1,643
    Accrued and other plant curtailment costs - net      4,025      (15,023)
    Lower of cost or market inventory adjustment       (19,818)      13,463
    Depreciation and amortization                       46,925       46,579
    Debt discount amortization                             791        1,601
    Pension and other postretirement benefits              673      (30,768)
    Stock-based compensation                               412        2,670
    Non-cash loss on early extinguishment of debt            -          763
    Undistributed earnings of joint ventures            (2,116)      (2,586)
    Change in operating assets and liabilities:
      Accounts receivable - net                          3,320       (8,164)
      Due from affiliates                                  317        6,602
      Inventories                                       31,810      (23,269)
      Prepaid and other current assets                  (8,254)     (25,405)
      Accounts payable, trade                           (8,823)      (2,783)
      Due to affiliates                                    761         (476)
      Accrued and other current liabilities              8,743       17,071
      Other - net                                      (12,176)     (13,256)
                                                   -----------  -----------
Net cash provided by operating activities               21,085       11,094
                                                   -----------  -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property, plant and equipment            (10,399)     (10,868)
  Nordural expansion - Helguvik                         (5,474)     (10,335)
  Purchase of carbon anode assets                      (14,185)           -
  Investments in and advances to joint ventures           (275)         (13)
  Payments received on advances from joint ventures      3,166        3,056
  Proceeds from sale of property, plant and
   equipment                                                89        1,471
  Restricted and other cash deposits                         -        3,673
                                                   -----------  -----------
Net cash used in investing activities                  (27,078)     (13,016)
                                                   -----------  -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Repayment of debt                                          -      (47,067)
  Repayment of contingent obligation                         -         (189)
  Borrowing under revolving credit facility             18,076       15,900
  Repayment under revolving credit facility            (18,076)     (15,900)
  Repurchase of common stock                            (4,033)     (38,806)
  Issuance of common stock - net                             -           83
                                                   -----------  -----------
Net cash used in financing activities                   (4,033)     (85,979)
                                                   -----------  -----------

CHANGE IN CASH AND CASH EQUIVALENTS                    (10,026)     (87,901)

Cash and cash equivalents, beginning of period         183,401      304,296
                                                   -----------  -----------

Cash and cash equivalents, end of period           $   173,375  $   216,395
                                                   ===========  ===========



                          Century Aluminum Company
                           Selected Operating Data
                                 (Unaudited)

                        SHIPMENTS - PRIMARY ALUMINUM

                         Direct (1)                        Toll
               ------------------------------ ------------------------------
                           (000)                          (000)     $ (000)
                 Metric                         Metric
                  Tons     Pounds    $/Pound     Tons     Pounds    Revenue
               --------- --------- ---------- --------- --------- ----------
2012
--------------
3rd Quarter       95,747   211,086 $     0.98    67,684   149,217 $   97,939
2nd Quarter       93,831   206,862       1.05    66,997   147,704    105,756
1st Quarter       94,087   207,426       1.06    65,880   145,240    106,416
               --------- --------- ---------- --------- --------- ----------
Year to Date     283,665   625,374 $     1.03   200,561   442,161 $  310,111
               ========= ========= ========== ========= ========= ==========

2011
--------------
3rd Quarter       82,236   181,299 $     1.19    68,596   151,229 $  129,369
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     247,224   545,035 $     1.21   199,269   439,313 $  379,140
               ========= ========= ========== ========= ========= ==========

(1) Does not include Toll shipments from
 Nordural Grundartangi

Contacts
Lindsey Berryhill (media)
831-642-9364

Shelly Harrison (investors)
831-642-9357

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