Century reports a net loss of $56.1 million for the third quarter of 2015

Century Aluminum Company reported a net loss of $56.1 million ($0.65 per common share) for the third quarter of 2015. Results were negatively impacted by a $5.3 million charge ($0.06 per common share) for lower of cost or market inventory adjustments, a $0.4 million charge ($0.01 per common share) related to the closure at Ravenswood, a $1.4 million charge ($0.02 per common share) related to the labor disruption at Hawesville, a $2.9 million charge ($0.04 per common share) related to the partial curtailment at Hawesville, and a $1.2 million charge ($0.01 per common share) related to severance primarily associated with cost reductions. Results were positively impacted by an $0.8 million purchase accounting gain ($0.01 per common share) related to Mt. Holly. After consideration of these items, the company reported an adjusted net loss of $45.7 million and adjusted loss per share of $0.48.

For the third quarter of 2014, Century reported net income of $50.4 million or $0.52 per common share.

Sales for the third quarter of 2015 were $454.5 million compared with $500.6 million for the third quarter of 2014. Shipments of primary aluminum for the third quarter of 2015 were 231,040 tonnes compared with 218,214 tonnes shipped in the third quarter of 2014.

Net cash used by operating activities in the third quarter of 2015 was $31.9 million compared to net cash provided of $89.1 million in the third quarter of 2014. Cash and cash equivalents decreased $44.4 million during the third quarter of 2015 compared to an increase in cash and cash equivalents of $72.0 million in the third quarter of 2014.

Our total liquidity position at the end of the third quarter of 2015 was $223 million, which is composed of $123 million in cash and $100 million of revolver availability.

For the first nine months of 2015, Century reported net loss of $16.2 million ($0.19 per common share). Results include a $31.2 million charge related to the permanent closure of Ravenswood and a $31.0 million charge for lower of cost or market inventory adjustments. Results were also negatively impacted by $13.1 million in costs related to the labor disruption at Hawesville, $2.9 million due to partial curtailment at Hawesville, $1.2 million related to severance, $1.6 million for signing bonuses related to a new labor agreement in Iceland and $1.0 million related to the separation of a former senior executive. Lastly, results include an $18.3 million unrealized gain on the fair value of contingent consideration related to the acquisition of the remaining 50.3% interest of Mt. Holly.

For the first nine months of 2014, Century reported net income of $50.6 million or $0.52 per common share. Cost of sales for the first nine months included a benefit of $5.5 million related to power contract amortization and $1.2 million for lower inventory costs. Results were negatively impacted by $3.6 million for a legal settlement.

Sales for the first nine months of 2015 were $1,565.9 million compared with $1,379.8 million for the first nine months of 2014. Shipments of primary aluminum for the first nine months of 2015 were 710,248 tonnes compared with 641,043 tonnes shipped for the first nine months of 2014.

Net cash provided by operating activities in the first nine months of 2015 was $32.5 million compared to $97.7 million in the first nine months of 2014. Cash and cash equivalents decreased $40.3 million during the first nine months of 2015 compared to an increase in cash and cash equivalents of $49.3 million in the first nine months of 2014. During the first nine months of 2015, Century acquired 2.4 million shares of common stock for a total cost of $36.4 million and paid $38.2 million related to the Mt. Holly acquisition, primarily for pension funding obligations per the terms of the acquisition agreement.

"Sentiment toward a broad range of commodities, brought about by a number of factors, has deteriorated markedly during the last few months," commented Michael Bless, President and CEO. "The issues in the primary aluminum sector are straightforward. Demand in most developed markets remains reasonably good. There is a supply deficit in the world excluding China and, given a lack of new capacity projects at any stage of gestation, this western world supply deficit is likely to persist for the foreseeable future. These otherwise favorable conditions have been severely neutralized by the global supply glut caused by the government of China's continued unfair subsidization of additional capacity expansion in China and further assistance to maintain existing capacity irrespective of market forces," Mr. Bless added.