Kaiser Aluminium’s H1 and Q2 FY2017-18 financials drop but exceed Wall Street forecasts

One of the world’s leading semi-fabricated aluminium producer Kaiser Aluminium Corporation announced yesterday its financial and production results for the first half and the second quarter of 2017 financial year. The numbers though down compared to the previous periods beat Wall Street’s forecasts commendably.

Kaiser’s shipments of semi-fabricated aluminium products for the quarter was down by four million pounds from Q1 FY 2018 to 160 million pounds and up by five million pounds in the same period previous year. The net sales recorded for Q2 FY2018 was US$356.3 million, down from US$334.9 million in Q1FY2017.

Total costs and expenses for the period under review stood at US$344.9 million, resulting in a net income of US$4.7 million for Q2, which is off from Q2 last year’s net income of US$26.0 million.

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During H1 of 2017, Kaiser shipped 323 million pounds of aluminium semi-finished products, up nine million pounds from the H1 of last year. Net sales for the period totalled US$711.6 million, an increase over last year’s H1 sales of US$678.1 million. Operating expenses during the period under review totalled US$640.7 million, leaving a net income of US$40.7 million.

“Our second quarter 2017 results exceeded our expectation for the quarter as Trentwood performed significantly better than anticipated despite project-related construction activity, major equipment outages and inefficient material flow," explained Kaiser Chairman and CEO Jack A. Hockema. We also benefited from favourable scrap material prices, and overhead and other costs in the quarter were more favourable than we had anticipated."