Century Reports Third Quarter 2014 Financial Results

Century Aluminum Company reported net income of $50.4 million or $0.52 per common share for the third quarter of 2014 on higher aluminum prices and lower power prices in the Midwestern U.S.

Sales for the third quarter of 2014 were $500.6 million compared with $399.9 million for the third quarter of 2013. Shipments of primary aluminum for the third quarter of 2014 were 218,214 tonnes compared with 212,797 tonnes shipped in the third quarter of 2013.

For the third quarter of 2013, Century reported a net loss of $9.5 million or $0.11 per common share. Cost of sales for the year-ago quarter included a $5.8 million benefit for lower inventory costs and an $11.7 million benefit for deferred power contract liability amortization.

For the first nine months of 2014, the company 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 2014 were $1,379.8 million compared with $1,053.1 million in the same period of 2013. Shipments of primary aluminum for the first nine months of 2014 were 641,043 tonnes compared with 547,843 tonnes for the comparable 2013 period.

For the first nine months of 2013, the company reported a net loss of $30.6 million or $0.35 per common share. Results for the first nine months of 2013 were positively impacted by an unrealized gain of $16.2 million primarily related to an LME-based contingent obligation, a gain on bargain purchase of $5.3 million and deferred power contract liability amortization of $14.5 million. Results were negatively impacted by a non-cash charge of $3.3 million for the early extinguishment of our 8.0% Senior Notes and a charge of $4.7 million for severance and other expenses related to our corporate headquarters relocation. Cost of sales for the first nine months of 2013 included a $10.3 million charge for lower of cost or market inventory adjustments.

"Global economic and capital market conditions remain volatile and somewhat uncertain," commented Michael Bless, President and Chief Executive Officer. "Markets have been buffeted by recent weakness in the euro zone economies and by continuing soft data from China; various geopolitical concerns also continue to weigh. In contrast, fundamental conditions in our markets appear robust. In primary metal, we see incremental demand outstripping planned new supply for the foreseeable future. The markets in which we participate are facing even more acute shortages in the value-added products required to serve sectors forecasting strong growth. It is in this context that we are targeting our efforts."