Century Net Up From A Year-Ago; Results Affected by Low Metal Prices.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)--Oct. 20, 1998--Century Aluminum Company (Nasdaq:CENX) reported net income of $1.9 million, or $0.10 a share for the third quarter of 1998. This compares with a loss of $3.2 million, or $0.16 a share, for the third quarter of 1997. The third quarter of 1997 includes an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charge of $1.9 million, or $0.09 a share, related to 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). of operations at the Company's Ravenswood Ravenswood may refer to: Film & Literature
Net income for the first nine months of 1998 was $15.9 million, or $0.79 a share. This compares with $1.3 million, or $0.07 a share, in the corresponding period of 1997. Sales in the third quarter of 1998 were $162.7 million versus $169.7 million in the year ago quarter. Sales in the first nine months of 1998 were $495.9 million compared with $552.7 million in the same period of 1997. Shipments of primary aluminum in the 1998 third quarter totaled 43.1 million pounds against 46.8 million pounds a year ago. Prices for primary aluminum in the quarter just ended averaged $0.69 a pound, off from $0.76 a pound in the year ago quarter. Shipments of sheet and plate products in the 1998 third quarter were 115.9 million pounds versus 121.4 million pounds a year ago. Prices for direct shipments of sheet and plate products rose to and average $1.20 a pound from $1.17 a pound a year ago. Commenting on the results, 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: "Improvements in the financial and operating performance in Century's Rolled Products unit during the quarter were offset by continued weakness in primary aluminum prices. "We made good progress in the quarter toward the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. goal of enriching our product mix. We accelerated our planned withdrawal from the commodity can sheet business, and have started up the $28-million project that doubles Ravenswood's capacity to produce heat-treated plate. Plate production will gradually grad·u·al adj. Advancing or progressing by regular or continuous degrees: gradual erosion; a gradual slope. n. Roman Catholic Church 1. rise to full capacity by mid- mid- pref. Middle: midbrain. 1999. The withdrawal from can sheet production before all the new plate capacity is operational accounts for most of the recent decline in shipments from a year ago. "We will continue to focus on improving the operating and financial performance of our Rolled Products unit. To realize our full financial potential, however, we must see improved primary aluminum prices. These prices are likely to remain depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. until there are visible signs of economic progress, especially in Asia." Century's Ravenswood Operations include a reduction plant with capacity to produce 168,000-metric tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. per year (mtpy mtpy Metric Tons Per Year ) of primary aluminum, and mills with a capacity to roll more than 270,000 mtpy of aluminum sheet and plate products. Century also holds a 26.7 percent share in a 205,000-mtpy aluminum reduction plant at Mt. Holly holly, common name for members of the Aquifoliaceae, a family of widely distributed trees and shrubs, most numerous in Central and South America. The evergreen English holly (Ilex aquifolium , SC. Century is based in Monterey, CA. -0-
CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in Thousands, Except Per Share Amounts)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
NET SALES:
Third-party
customers $143,558 $141,237 $435,985 $471,965
Related parties 19,169 28,472 59,894 80,752
162,727 169,709 495,879 552,717
COST OF GOODS
SOLD 156,204 169,864 464,018 534,345
GROSS PROFIT
(LOSS) 6,523 (155) 31,861 18,372
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES 4,376 3,748 13,171 13,655
OPERATING INCOME
(LOSS) 2,147 (3,903) 18,690 4,717
INTEREST EXPENSE
- Net (437) (569) (1,579) (2,263)
NET GAIN (LOSS) ON
FORWARD
CONTRACTS 1,068 (1,473) 7,592 (966)
OTHER INCOME 256 888 109 552
INCOME (LOSS)
BEFORE INCOME
TAXES 3,034 (5,057) 24,812 2,040
INCOME TAX (EXPENSE)
BENEFIT (1,092) 1,854 (8,932) (734)
NET INCOME (LOSS) $1,942 $(3,203) $15,880 $1,306
EARNINGS (LOSS) PER
SHARE
Basic $ 0.10 $ (0.16) $ 0.79 $ 0.07
Diluted $ 0.10 $ (0.16) $ 0.78 $ 0.06
DIVIDENDS PER
COMMON SHARE $ 0.05 $ 0.05 $ 0.15 $ 0.15
CENTURY ALUMINUM COMPANY
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
Sept. 30, Dec. 31,
1998 1997
ASSETS
CURRENT ASSETS:
Cash $ 43 $ 42
Restricted cash equivalents 5,811 5,805
Accounts receivable, trade - net 86,693 111,146
Due from affiliates 9,502 8,362
Inventories 170,890 170,085
Prepaid and other assets 8,962 8,082
Total current assets 281,901 303,522
PROPERTY, PLANT AND EQUIPMENT - NET 212,861 198,341
OTHER ASSETS 10,203 5,285
TOTAL $504,965 $507,148
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable, trade $ 38,847 $ 51,411
Due to affiliates 4,110 10,560
Accrued and other current liabilities 34,278 22,364
Accrued employee benefits costs -
current portion 30,208 38,663
Total current liabilities 107,443 122,998
REVOLVING TERM LOAN 65,737 58,950
ACCRUED PENSION BENEFITS COSTS - Less
current portion 9,362 12,139
ACCRUED POSTRETIREMENT BENEFITS COSTS -
Less current portion 120,805 118,532
DUE TO AFFILIATES 0 6,673
OTHER LIABILITIES 25,192 24,310
Total noncurrent liabilities 221,096 220,604
SHAREHOLDERS' EQUITY:
Common Stock (one cent par value,
50,000,000 shares authorized;
20,000,000 shares outstanding at
September 30, 1998 and
December 31, 1997 200 200
Additional paid-in capital 161,953 161,953
Retained earnings 14,273 1,393
Total shareholders' equity 176,426 163,546
TOTAL $504,965 $507,148
CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
Nine months ended
September 30,
1998 1997
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 15,880 $ 1,306
Adjustments to reconcile net
income to net cash provided by
(used in) operating activities:
Depreciation and amortization 14,668 13,933
Deferred income taxes (3,767) (6,363)
Pension and other
postretirement benefits (8,959) (3,471)
Change in operating assets
and liabilities:
Accounts receivable,
trade - net 24,453 (13,129)
Due from affiliates (1,140) (4,191)
Inventories (805) 5,961
Prepaids and other assets (936) (4,992)
Accounts payable, trade (12,564) 3,424
Due to affiliates (13,123) 7,809
Accrued and other
current liabilities 11,914 (2,565)
Other - net 670 820
Net cash provided by (used in)
operating activities 26,291 (1,458)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant
and equipment (30,071) (18,685)
Restricted cash deposits (6) --
Net cash used in
investing activities (30,077) (18,685)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings 166,533 179,671
Repayment of borrowings (159,746) (154,622)
Dividends (3,000) (3,000)
Net cash provided by
financing activities 3,787 22,049
NET INCREASE IN CASH 1 1,906
CASH, BEGINNING OF PERIOD 42 112
CASH, END OF PERIOD $ 43 $ 2,018
CENTURY ALUMINUM COMPANY
SELECTED OPERATING DATA
(in thousands, except dollars per pound)
(Unaudited)
Flat-Rolled Sheet and Plate Product Shipments
Direct (1) Toll
Pounds $/Pound Pounds $/Pound
1998
1st Quarter 114,618 $ 1.23 7,154 $ 0.31
2nd Quarter 103,355 $ 1.23 9,592 $ 0.26
3rd Quarter 109,205 $ 1.20 6,718 $ 0.29
Total 327,178 $ 1.22 23,464 $ 0.28
1997
1st Quarter 138,916 $ 1.10 12,017 $ 0.32
2nd Quarter 134,411 $ 1.14 13,130 $ 0.29
3rd Quarter 112,232 $ 1.17 9,217 $ 0.32
Total 385,559 $ 1.13 34,364 $ 0.31
Primary Aluminum Shipments (1)
Pounds $/Pound
1998
1st Quarter 44,779 $ 0.74
2nd Quarter 38,022 $ 0.71
3rd Quarter 43,146 $ 0.69
Total 125,947 $ 0.71
1997
1st Quarter 47,666 $ 0.74
2nd Quarter 46,059 $ 0.76
3rd Quarter 46,780 $ 0.76
Total 140,505 $ 0.75
(1) Does not include forward sales contracts without physical
delivery.
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