Century Aluminum Reports First Quarter Net of $5.8 Million; Results Improve Significantly Over Year-Ago and Prior Quarter.MONTEREY Monterey (mŏntərā`), city (1990 pop. 31,954), Monterey co., W Calif., a port on Monterey Bay; founded 1770, inc. 1850. It is a popular resort, the home of many artists and writers, and one of California's oldest cities. , Calif.--(BUSINESS WIRE)--April 20, 1998--Century Aluminum Company (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CENX) reported net income of $5.8 million, or $0.29 a common share, for the first quarter of 1998. This compares with net income of $1.7 million, or $0.09 a common share, for the first quarter of 1997. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the first quarter of 1998 also was better than the fourth quarter 1997. Sales in the first quarter of 1998 were $176.4 million compared with $191.5 million in the year ago quarter. Shipments of primary aluminum in the 1998 quarter totaled 44.8 million pounds versus 47.7 million pounds in 1997. Shipments of sheet and plate products in the quarter just ended were 121.8 million pounds compared with 150.9 million pounds a year ago. Commenting on the company's performance and outlook, Century Chairman Craig Craig , Edward Gordon 1872-1966. British theatrical producer, director, and designer whose innovative productions and simplified stage designs influenced modern theater. A. Davis said: "Our Rolled Products unit reduced the volume of its low-margin products and continued to improve its operating performance under the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan started in mid- mid- pref. Middle: midbrain. 1997. We expect further improvement during the year, particularly as the company's previously announced $28-million project to double heat-treated plate capacity is completed. First metal will be shipped in the fourth quarter. "During the first quarter we announced several price increases for rolled products, reflecting strong demand in our markets. Though significantly improved, our financial performance was adversely affected by progressively weaker prices for primary aluminum in the first quarter." Century produces primary aluminum and a broad range of aluminum sheet and plate products. Its principal subsidiary is Century Aluminum of West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. , Inc., which operates an aluminum reduction plant and rolling mill rolling mill: see steel. at Ravenswood Ravenswood may refer to: Film & Literature
CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in Thousands, Except Per Share Amounts)
(Unaudited)
Three months ended
March 31,
1998 1997
NET SALES:
Third-party customers . . . . . .$ 153,357 $ 165,704
Related parties . . . . . . . . . 23,033 25,827
176,390 191,531
COST OF GOODS SOLD . . . . . . . . . . 162,879 184,585
GROSS PROFIT . . . . . . . . . . . . . 13,511 6,946
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES . . . . . 4,457 4,302
OPERATING INCOME . . . . . . . . . . . 9,054 2,644
INTEREST EXPENSE - Net . . . . . . . . (688) (741)
NET GAIN ON FORWARD CONTRACTS . . . . 1,028 973
OTHER EXPENSE . . . . . . . . . . . . (288) (179)
INCOME BEFORE INCOME TAXES . . . . . . 9,106 2,697
INCOME TAX EXPENSE . . . . . . . . . . (3,278) (971)
NET INCOME . . . . . . . . . . . . . .$ 5,828 $ 1,726
BASIC AND DILUTED EARNINGS PER SHARE
Net income . . . . . . . . . . . $ 0.29 $ 0.09
CASH DIVIDENDS PAID PER
COMMON SHARE . . . . . . . . . . $ 0.05 $ 0.05
CENTURY ALUMINUM COMPANY
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
March 31, December 31,
1998 1997
ASSETS
CURRENT ASSETS:
Cash . . . . . . . . . . . . . . $ 1,000 $ 42
Restricted cash equivalents . . . 5,807 5,805
Accounts receivable, trade - net 102,953 111,146
Due from affiliates . . . . . . . 12,364 8,362
Inventories . . . . . . . . . . . 170,481 170,085
Prepaid and other assets. . . . . 6,811 8,082
Total current assets . . . . 299,416 303,522
PROPERTY, PLANT AND EQUIPMENT
- NET . . . . . . . . . . 200,652 198,341
OTHER ASSETS . . . . . . . . . . . . . 7,193 5,285
TOTAL . . . . . . . . . . $ 507,261 $ 507,148
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable, trade . . . $ 39,805 $ 51,411
Due to affiliates . . . . . . . . 8,754 10,560
Accrued and other current
liabilities . . . . . . 35,124 22,364
Accrued employee benefits costs -
current portion 37,165 38,663
Total current liabilities . . 120,848 122,998
REVOLVING TERM LOAN . . . . . . . . . . 60,287 58,950
ACCRUED PENSION BENEFITS COSTS - Less
current portion . 9,107 12,139
ACCRUED POSTRETIREMENT BENEFITS COSTS
- Less current portion 121,080 118,532
DUE TO AFFILIATES . . . . . . . . . . . 2,962 6,673
OTHER LIABILITIES . . . . . . . . . . . 24,603 24,310
Total noncurrent liabilities 218,039 220,604
SHAREHOLDERS' EQUITY:
Common Stock (one cent par value,
50,000,000 shares authorized;
20,000,000 shares outstanding at
March 31, 1998 and
December 31, 1997) . . . . . . . 200 200
Additional paid-in capital . . . . 161,953 161,953
Retained earnings. . . . . . . . . 6,221 1,393
Total shareholders' equity. . 168,374 163,546
TOTAL . . . . . . . . . . . $ 507,261 $ 507,148
CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
Three months ended
March 31,
1998 1997
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income . . . . . . . . . . . .$ 5,828 $ 1,726
Adjustments to reconcile net
income to net cash from (used in)
operating activities:
Depreciation and amortization . 4,890 4,842
Pension and other
postretirement benefits . . . (1,982) (2,155)
Worker's compensation . . . . . -- 540
Change in operating assets and
liabilities:
Accounts receivable, trade
- net . . . . 8,193 (31,268)
Due from affiliates . . . . (4,002) (1,673)
Inventories . . . . . . . (396) 2,517
Prepaids and other assets. 641 218
Accounts payable, trade . (11,605) 12,572
Due to affiliates . . . . (5,517) (3,861)
Accrued and other current
liabilities . . . . . . 12,760 1,976
Other - net . . . . . . . 183 118
Net cash provided by (used in)
operating activities . . . . 8,993 (14,448)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and
equipment . . . . . . . . . . . . (8,370) (4,368)
Restricted cash deposits . . . . . . (2) --
Net cash used in investing
activities . . . . . . . . . . (8,372) (4,368)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings . . . . . . . . . . . . . 64,432 68,144
Repayment of borrowings. . . . . . . (63,095) (46,850)
Dividends. . . . . . . . . . . . . . (1,000) (1,000)
Net cash provided by financing
activities . . 337 20,294
NET INCREASE IN CASH . . . . . . . . . . 958 1,478
CASH, BEGINNING OF PERIOD. . . . . . . . 42 112
CASH, END OF PERIOD . . . . . . . . . .$ 1,000 $ 1,590
CENTURY ALUMINUM COMPANY
SELECTED OPERATING DATA
(in thousands, except dollars per pound)
(Unaudited)
Flat-Rolled Sheet and Plate Product Shipments
Direct (1) Toll (1)
Pounds $/Pound Pounds $/Pound
1st Quarter:
1998 114,618 $ 1.23 7,154 $ 0.31
1997 138,916 $ 1.10 12,017 $ 0.32
Primary Aluminum Shipments (1)
Pounds $/Pound
1st Quarter:
1998 44,779 $ 0.74
1997 47,666 $ 0.74
(1) Does not include forward sales contracts without physical
delivery.
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CONTACT: Century Aluminum, Monterey A.T. Posti Posti or Posten (Finland) (in full Itella Oyj Abp) is the Finnish state-owned postal service. It has been organised as a public limited company since 2001, and is owned entirely by the Finnish government. , 304/273-6466 |
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