Kaiser Aluminium reports higher net income and EBITDA margin for full year 2016

California’s semi-fabricated aluminium maker Kaiser Aluminium has announced its fourth quarter and full year 2016 result posting better numbers for both the periods. The 2016 report states net sales of $332 million in 4^th quarter, slightly up quarter-on-quarter from last quarter’s total $321 million.

The company’s net income for the quarter is at $25 million compared to last quarter's total of $15 million. The adjusted EBITDA margin stands at 25.8% with an increase of 3 per cent vs last quarter and adjusted EBITDA  in the quarter stands at USD52 million higher than quarter-on-quarter from Q3’s total of USD45 million.

The company’s full year 2016 sales result stands at $1.331 billion, slightly lower than 2015’s total of $1.392 billion. Its value added revenue Up 3% to $813 million from last year’s total of $790 million.

The Net income for the full year stands at $92 million, a stark reversal from 2015’s net loss of USD237 million. The adjusted EBITDA is at $207 million, higher than 2015’s total of USD183 million and adjusted EBITDA margin for the year is at 25.4%, up from 2015’s margin of 23.2%.

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CEO and Chairman of Kaiser Aluminium Jack A. Hockema said, “Our fourth quarter 2016 results reflect solid underlying demand with normal year-end seasonal weakness. Strong shipments and value added revenue were supported by delivery of the unusually high in-transit aerospace plate inventory at end of the third quarter.”

“The combined effect of lower sales margins, higher planned major maintenance, and reduced operating efficiencies is expected to drive down our first half 2017 adjusted EBITDA margin to the low 20s,” he added.

“However, we expect these headwinds will be temporary, and the project-related work at Trentwood this year will serve to further enhance our competitive position and enable us to address strong demand anticipated in 2018 and 2019,” Hockema concluded.