Century Aluminum Company files Quarterly Report for 2012-03-31

Century Aluminum Company (CENX) filed Quarterly Report for the period ended 2012-03-31.

Century Alum Co has a market cap of $807.1 million; its shares were traded at around $7.92 with and P/S ratio of 0.6. Highlight of Business Operations:

Lower price realizations for our primary aluminum shipments in the three months ended March 31, 2012 were due to lower LME prices for primary aluminum, which were partially off-set by increased Midwest premiums. The lower price realizations resulted in a $38.3 million sales decrease. Higher shipment volumes had a $38.2 million positive impact on net sales. Direct shipments from our three operating smelters increased 13,608 metric tons in the three months ended March 31, 2012 due to the restart of idled capacity at our Hawesville facility. Toll shipments increased 2,181 metric tons relative to the same period last year.

During the three months ended March 31, 2012, lower price realizations, net of LME-based alumina cost and LME-based power cost, reduced gross profit by $34.2 million. The increased volume increased gross profit by $3.1 million. In addition, we experienced $7.5 million in net cost increases, relative to the same period in 2011, comprised of: increased power and natural gas costs at our U.S. smelters, $2.9 million; increased costs for materials, supplies and maintenance, $8.5 million; offset by reduced depreciation, $0.3 million and other cost decreases, $3.6 million.

Declines in LME prices at the end of the fourth quarter of 2011 resulted in a decline in the market value of our inventory below its cost basis, resulting in a lower of cost or market reserve of $19.8 million on the balance sheet as of December 31, 2011. During the three months ended March 31, 2012, our cost of goods sold was reduced by $17.1 million to reflect the market basis of inventory sold during the quarter that had previously been written-down to its market value and to reflect the lower of cost or market value of the March 31, 2012 inventory. This represents a quarter to quarter positive impact on gross profit of $16.9 million.

Our 2012 and 2011 income tax expense was primarily driven by our earnings in Iceland. In addition, during the three months ended March 31, 2011, we had a partial offset to income tax expense due to a discrete tax benefit arising from the elimination of medical benefits for retirees of the Ravenswood facility.