Despite Production Drop, Century Reports 21 Percent Rise in Primary Aluminium Sales
American aluminium smelter Century Aluminum reported second-quarter results on Wednesday, with financials generally improved across the board despite a quarter-on-quarter drop in production.
Century shipped 180,220 metric tons in the quarter, down from the first quarter’s total shipments of 187,238 metric tons. Second-quarter net sales totaled US$470.0 million, up 3 percent quarter-on-quarter from last quarter’s total of US$454.5 million. Century’s second-quarter sales rise was accomplished in the face of a drop in production volume at the Sebree smelter, which was the result of equipment failure.
In the second quarter Century reported a net income of US$19.4 million, a reversal from the prior quarter’s net loss of US$300 thousand. Though an improvement, net income suffered from equipment failures costing US$8.5 million at the Sebree smelter, and US$3 million in costs incurred in conjunction with the Hawesville restart.
Adjusted Net Income in the quarter came to US$30.9 million, also an improvement over the firm’s Q1 loss of US$3.5 million. Adjusted EBITA in the quarter totaled US$54.5 million, a quarter-on-quarter improvement from Q1’s total of US$21.8 million. Century chalks up the improvement to corresponding price rises at the LME and regionally, and a fall in realized alumina costs.
Michael Bless, President and Chief Executive Officer, expressed his view that the aluminium industry continues to be in rebound.