Century reports a net loss in Q4 2015, YoY primary aluminium shipments rise 6.3%

Century Aluminum Company reported a net loss of $43.1 million for the fourth quarter of 2015. Results were favorably impacted by a $23.5 million lower of cost or market inventory adjustment and $3.4 million related to non-cash, non-recurring post-retirement benefits. Results were negatively impacted by a $3.5 million charge related to the partial curtailment of operations at Hawesville and Mt. Holly, a $5.0 million charge for depreciation related to Mt. Holly purchase accounting and an $11.6 million impairment charge at BHH. After consideration of these items, the company reported an adjusted net loss of $49.9 million and an adjusted loss per share of $0.53 for the fourth quarter.

For the fourth quarter of 2014, Century reported net income of $75.8 million. Sales for the fourth quarter of 2015 were $383.9 million compared with $551.2 million for the fourth quarter of 2014. Shipments of primary aluminum for the fourth quarter of 2015 were 211,710 tonnes compared with 226,082 tonnes shipped in the fourth quarter of 2014.

Net cash used by operating activities in the fourth quarter of 2015 was $0.6 million compared to net cash provided of $110.0 million in the fourth quarter of 2014. Cash and cash equivalents decreased $7.6 million during the fourth quarter of 2015 compared to an increase in cash and cash equivalents of $29.8 million in the fourth quarter of 2014.

Century's total liquidity position at the end of the fourth quarter of 2015 was $200 million.

For full year 2014, the company reported net income of $126.5 million. Sales for the year ended December 31, 2015 were $1,949.9 million compared with $1,931.0 million for 2014. Shipments of primary aluminum for 2015 were 921,958 tonnes compared with 867,125 tonnes shipped for 2014.

Net cash provided by operating activities in 2015 was $31.9 million compared to $207.7 million in 2014. Cash and cash equivalents decreased $47.8 million in 2015 compared to an increase in cash and cash equivalents of $79.2 million in 2014.

Commenting on the fourth quarter 2015 results, Michael Bless, President and Chief Executive Officer said, "The fundamental demand picture in our sector has remained reasonably stable outside China."

"Inside Century, we have taken aggressive actions to bolster our businesses' competitive position and preserve the ability for our shareholders to participate in the improvement in industry conditions that will occur at some point," added Mr. Bless.