Century Aluminum Reports Second Quarter 2007 Results

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.


                      Century Aluminum Company
                Consolidated Statements of Operations
               (in Thousands, Except Per Share Amounts)
                             (Unaudited)


                                 Three months ended     Six months ended
                                      June 30,              June 30,
                                --------------------  --------------------
                                  2007       2006       2007       2006
                                ---------  ---------  ---------  ---------
NET SALES:
     Third-party customers      $ 370,883  $ 356,242  $ 751,736  $ 654,715
     Related parties               93,122     49,734    159,926     98,207
                                ---------  ---------  ---------  ---------
                                  464,005    405,976    911,662    752,922

COST OF GOODS SOLD                355,613    297,972    692,618    568,450
                                ---------  ---------  ---------  ---------

GROSS PROFIT                      108,392    108,004    219,044    184,472

SELLING, GENERAL AND
 ADMINISTRATIVE EXPENSES           14,445      8,376     27,412     20,495
                                ---------  ---------  ---------  ---------

OPERATING INCOME                   93,947     99,628    191,632    163,977

INTEREST EXPENSE - Net             (7,439)    (8,647)   (16,469)   (15,202)
NET LOSS ON FORWARD CONTRACTS    (205,246)   (30,456)  (204,856)  (317,216)
OTHER INCOME (EXPENSE) - Net       (3,139)        37     (3,295)      (124)
                                ---------  ---------  ---------  ---------
INCOME (LOSS) BEFORE INCOME
 TAXES AND EQUITY IN EARNINGS
 OF JOINT VENTURES               (121,877)    60,562    (32,988)  (168,565)

INCOME TAX (EXPENSE) BENEFIT       57,045    (19,109)    28,958     65,247
                                ---------  ---------  ---------  ---------

INCOME (LOSS) BEFORE EQUITY IN
 EARNINGS OF JOINT VENTURES       (64,832)    41,453     (4,030)  (103,318)


EQUITY IN EARNINGS OF JOINT
 VENTURES                           4,167      4,347      7,614      7,547
                                ---------  ---------  ---------  ---------

NET INCOME (LOSS)               $ (60,665) $  45,800  $   3,584  $ (95,771)
                                =========  =========  =========  =========


EARNINGS (LOSS) PER COMMON
 SHARE
    Basic - Net income (loss)   $   (1.77) $    1.41  $    0.11  $   (2.96)
    Diluted - Net income (loss) $   (1.77) $    1.35  $    0.10  $   (2.96)

WEIGHTED AVERAGE COMMON SHARES
 OUTSTANDING
     Basic                         34,224     32,419     33,371     32,341
     Diluted                       34,224     34,297     35,597     32,341



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


                                             June 30,       December 31,
                                               2007            2006
ASSETS                                     --------------  --------------
Current Assets:
     Cash                                  $      187,727  $       96,365
     Restricted cash                                2,012           2,011
     Short-term investments                       121,681               -
     Accounts receivable - net                    111,153         113,371
     Due from affiliates                           37,999          37,542
     Inventories                                  167,344         145,410
     Prepaid and other current assets              20,355          19,830
     Deferred taxes - current portion             120,196         103,110
                                           --------------  --------------
          Total current assets                    768,467         517,639
Property, plant and equipment - net             1,251,952       1,218,777
Intangible asset - net                             54,599          61,594
Goodwill                                           94,844          94,844
Other assets                                      335,814         292,380
                                           --------------  --------------
          Total                            $    2,505,676  $    2,185,234
                                           ==============  ==============

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
     Accounts payable, trade               $       70,070  $       64,849
     Due to affiliates                            279,820         282,282
     Accrued and other current liabilities         68,473          75,143
     Long-term debt - current portion                 618          30,105
     Accrued employee benefits costs -
      current portion                              11,083          11,083
     Convertible senior notes                     175,000         175,000
     Industrial revenue bonds                       7,815           7,815
                                           --------------  --------------
          Total current liabilities               612,879         646,277
                                           --------------  --------------

Senior unsecured notes payable                    250,000         250,000
Nordural debt                                      54,018         309,331
Accrued pension benefit costs - less current
 portion                                           20,789          19,239
Accrued postretirement benefits costs - less
 current portion                                  214,772         206,415
Due to affiliates - less current portion          655,782         554,864
Other liabilities                                  42,067          27,811
Deferred taxes                                     54,205          41,587
                                           --------------  --------------
          Total noncurrent liabilities          1,291,633       1,409,247
                                           --------------  --------------

Shareholders' Equity:
     Common stock (one cent par value,
      100,000,000 shares authorized;
      40,952,070 shares outstanding at
      June 30, 2007 and 32,457,670 at
      December 31, 2006)                              410             325
     Additional paid-in capital                   853,273         432,270
     Accumulated other comprehensive loss        (111,890)       (166,572)
     Accumulated deficit                         (140,629)       (136,313)
                                           --------------  --------------
          Total shareholders' equity              601,164         129,710
                                           --------------  --------------
          Total                            $    2,505,676  $    2,185,234
                                           ==============  ==============



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


                                                        Six months ended
                                                            June 30,
                                                        2007       2006
                                                      ---------  ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income (loss)                                 $   3,584  $ (95,771)
    Adjustments to reconcile net income (loss) to net
     cash provided by operating activities:
       Unrealized net loss on forward contracts         150,160    283,573
       Depreciation and amortization                     38,012     32,224
       Deferred income taxes                            (48,949)   (29,806)
       Pension and other post retirement benefits         9,907      7,139
       Stock-based compensation                           2,598      3,872
       Excess tax benefits from share based
        compensation                                       (487)    (1,090)
       (Gain) loss on disposal of assets                    (95)        45
       Non-cash loss on early extinguishment of debt      2,461          -
       Increase in short-term investments - net        (121,681)         -
       Undistributed earnings of joint ventures          (7,614)    (7,547)
       Change in operating assets and liabilities:
          Accounts receivable - net                       2,218    (35,175)
          Due from affiliates                              (456)     3,003
          Inventories                                   (21,934)   (17,880)
          Prepaid and other current assets               (2,650)    (3,459)
          Accounts payable, trade                         7,341       (710)
          Due to affiliates                              15,474      2,173
          Accrued and other current liabilities         (16,855)   (69,243)
          Other - net                                    10,053     (4,058)
                                                      ---------  ---------
       Net cash provided by operating activities         21,087     67,290
                                                      ---------  ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of property, plant and equipment            (7,678)    (7,568)
    Nordural expansion                                  (58,981)  (109,002)
    Proceeds from sale of property, plant and
     equipment                                              543         10
    Restricted cash deposits                              2,599     (4,001)
                                                      ---------  ---------
       Net cash used in investing activities            (63,517)  (120,561)
                                                      ---------  ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Borrowings of long-term debt                         30,000     69,000
    Repayment of long-term debt                        (314,800)      (288)
    Net repayments under revolving credit facility            -     (8,069)
    Excess tax benefits from share based compensation       487      1,090
    Issuance of common stock                            418,105      2,961
                                                      ---------  ---------
       Net cash provided by financing activities        133,792     64,694
                                                      ---------  ---------

NET INCREASE IN CASH                                     91,362     11,423

CASH, BEGINNING OF PERIOD                                96,365     17,752
                                                      ---------  ---------

CASH, END OF PERIOD                                   $ 187,727  $  29,175
                                                      =========  =========



                         Century Aluminum Company
                         Selected Operating Data
                               (Unaudited)

                       SHIPMENTS - PRIMARY ALUMINUM


                                  Direct (1)                 Toll
                            ---------------------- ------------------------
                            Metric  (000)          Metric (000)     (000)
                             Tons   Pounds $/Pound  Tons  Pounds   Revenue
                            ------- ------- ------ ------ ------- ---------
2007
----
2nd Quarter                 132,496 292,104 $ 1.19 56,154 123,798 $ 117,667
1st Quarter                 131,568 290,057 $ 1.15 53,054 116,964 $ 114,383

2006
----
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


(1) Does not include Toll shipments from Nordural


                FORWARD PRICED SALES - As of June 30, 2007


                                                                    2011-
                             2007(1)(2)  2008(2)  2009(2)  2010(2)  2015(2)
                               -------  -------  -------  -------  -------
Base Volume
   Pounds (000)                183,777  240,745  231,485  231,485  826,733
   Metric Tons                  83,360  109,200  105,000  105,000  375,000
   Percent of estimated
    capacity                        21%      14%      13%      13%       9%

Potential Additional Volume(2)
   Pounds (000)                 55,556  220,903  231,485  231,485  826,733
   Metric Tons                  25,200  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 July 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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