Kaiser Aluminum Corporation Reports
Second Quarter and First Half 2019 Financial Results
Second Quarter 2019 Highlights:
Net Sales $375 Million; Net Income $19 Million; Earnings per Diluted Share $1.18
Value Added Revenue $209 Million; Adjusted EBITDA $48 Million; Adjusted EBITDA Margin 22.7%
Adjusted Net Income $23 Million; Adjusted Earnings per Diluted Share $1.40
Excellent Execution of Planned Trentwood Outage ~$10 Million Impact
First Half 2019 Highlights:
Net Sales $771 Million; Net Income $47 Million; Earnings per Diluted Share $2.89
Value Added Revenue $428 Million; Adjusted EBITDA $104 Million; Adjusted EBITDA Margin 24.3%
Adjusted Net Income $53 Million; Adjusted Earnings per Diluted Share $3.24
Planned and Unplanned Trentwood Downtime ~$15 Million Impact
FOOTHILL RANCH, Calif., July 24, 2019 - Kaiser Aluminum Corporation (NASDAQ:KALU) today announced second quarter and first half 2019 results.
Second Quarter Management Summary
“Kaiser Aluminum generated solid second quarter 2019 results despite the impact of the Trentwood planned maintenance outage on our largest casting complex, the hot line and large plate stretcher. Excellent planning and execution by our Trentwood team resulted in a one-time EBITDA impact from maintenance costs, operating inefficiencies, and lost production and shipments of approximately $10 million, substantially lower than the previously anticipated $15 million impact,” said Jack A. Hockema, Chairman and Chief Executive Officer.
“Despite the production constraints, our aerospace shipments during the quarter continued to reflect a very strong order book. Similar to the first quarter 2019, general engineering shipments were constrained as we prioritized allocation of our heat treat plate capacity to meet aerospace customer commitments. Automotive shipments reflected the transition from programs reaching end-of-life to new program launches,” said Mr. Hockema.
Second Half and Full Year 2019 Outlook
“Although timing of the Boeing 737-MAX resolution is uncertain, our second half 2019 aerospace order book is strong with solid visibility well into 2020,” said Mr. Hockema. “We expect our new automotive programs will continue to gather momentum in the second half with increased year-over-year shipments, and, as we have noted previously, we remain very optimistic for strong automotive content growth in 2020-2021. Industrial demand also remains strong, but is moderating, and we anticipate normal seasonal demand weakness in the second half 2019.”
“Our outlook for the full year 2019 remains unchanged. Despite the drag on first half results from planned and unplanned downtime at Trentwood, we continue to anticipate EBITDA margin above 25% and a low to mid-single digit percent year-over-year increase in both shipments and value added revenue,” concluded Mr. Hockema.
The following information was filed by Kaiser Aluminum Corp (KALU) on Wednesday, July 24, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.