Century Aluminum reports $12M loss in third quarter

Century Aluminum announced Nov. 1 a net loss of $12 million for the third quarter of 2012, according to a news release from the company. Financial results were positively impacted by a net benefit of $4.1 million related to certain litigation items, according to the news release. The news release also pointed out changes to the Century of West Virginia retiree medical benefits program increased the company's nine-month results by $18.3 million with an associated discrete tax benefit of $4.2 million. Century president and CEO Michael Bless said in the news release the company filed a response to the Public Service Commission of West Virginia's early October order in the company's electricity rate case. "We continue to believe a pathway should exist to create a power arrangement to enable a restart of this plant," Bless said. Century took an $8.6 million charge, related to the restart of a curtailed potline at the Hawesville, Ky., smelter in its cost of sales, along with a $13.5 million charge for lower of cost or market inventory adjustments. "Markets have remained volatile," Bless said in a news release. "The sovereign debt crisis in Europe, uncertainty regarding the U.S. fiscal status during the election cycle and continuing relatively soft economic data reported by China are weighing on investor sentiment generally, and commodities and other risk assets specifically. "Despite these factors, our U.S. customer markets remain reasonably strong, though we continue to monitor them closely." In the third quarter of 2011, Century reported a net loss of $6.6 million. Financial results were positively impacted by an unrealized net gain on forward contracts of $4.5 million related primarily to aluminum price protection options. The cost of sales for that quarter included a $13.5 million charge for lower of cost or market inventory adjustments. Sales for the third quarter of 2012 were $304.6 million, compared with $345.6 million for the third quarter of 2011, according to the news release. Shipments of primary aluminum for the 2012 third quarter were 163,431 tonnes, compared with 150,832 tonnes shipped in the third quarter of 2011. Century also reported a net loss of $28.7 million for the first nine months of 2012.