Kaiser Aluminium reports net income of $34 million in first quarter of 2013

Kaiser Aluminum yesterday reported net income of $34 million for the first quarter of 2013 compared to $27 million, or $1.38 earnings per diluted share for the first quarter of 2012. Excluding the impact of non-run-rate items and an $8 million Canadian tax benefit, adjusted net income was $20 million for the first quarter, compared to adjusted net income of $21 million for the prior year first quarter. The current-year quarter reflects the benefit of revenue related to a $4.5 million payment from a customer in lieu of fulfilling minimum volume obligations under a multi-year contract.

Value added revenue of $187 million for the first quarter of 2013 declined from $195 million in the prior year first quarter reflecting mild headwinds. Weaker demand during the quarter driven by modest inventory overhang in the aerospace supply chain, relatively flat automotive build rates and weak supply chain demand for the Company's general industrial applications was partially offset by $4.5 million of revenue related to the customer payment referenced above.

Adjusted consolidated EBITDA was $48 million or 26% of value added revenue in the first quarter of 2013 compared to adjusted consolidated EBITDA of $44 million or 23% of value added revenue for the prior year quarter. Adjusted consolidated EBITDA and EBITDA margin for the first quarter of 2013 were up on lower value added revenue due to improved underlying manufacturing efficiencies, lower contained metal costs, and the impact of the customer payment recognized during the quarter.

Speaking on the occasion, Jack A. Hockema, President, CEO and Chairman said while we expect mild headwinds will continue in the second quarter, we remain optimistic that 2013 results will exceed our record 2012 results. As we look forward, our long-term prospects remain strong particularly as end market demand continues to improve.