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Kaiser Aluminum fourth quarter profit triples
Edited by : AL CIRCLE
3 min read
Kaiser Aluminum Corporation (KALU), a producer of semi-fabricated specialty aluminum products, reported on Monday a sharp rise of 3 times in earnings for the fourth quarter of fiscal year 2013, helped by strong margin expansion.
The company earned $27.3 million or $1.44 a share in the fourth quarter compared with $9.1 million or $0.47 a share, a year ago. Analysts on average had predicted profit of $0.87 for the latest quarter.
Revenues for the quarter dropped 0.86 percent to $311.3 million from $314 million last year.
During the quarter, gross margin expanded 399 basis points over previous year period to 19.63 percent.
Total expenses as a percentage of revenues decreased to 86.64 percent from 92.39 percent in the same period last year. That resulted in improvement of 575 basis points in operating margin to 13.36 percent.
The company disclosed operating income of $41.6 million for the fourth quarter compared with $23.9 million in the last year period.
Adjusted EBITDA for the fourth quarter stood at $42 million compared to $36 million in prior year fourth quarter. While adjusted EBITDA margin has improved 203 basis points over prior year period to 13.49 percent.
'We expect a mixture of headwinds and tailwinds. We are beginning to see indications that the inventory overhang in non-plate aerospace products is abating. However, as previously discussed, the industry is experiencing an overhang in aerospace plate inventory that is expected to continue throughout 2014,' said, Jack A. Hockema, president, CEO and chairman.
'Although our outlook for the first half 2014 is cautious, we remain very positive in the long-term outlook for the company. We anticipate continued long-term growth in our overall value added revenue and adjusted EBITDA driven by strong demand for aerospace and automotive applications and improving operating cost efficiencies as we further benefit from the significant capital investments we have made to enhance our potential for long-term value creation. We are well positioned with competitive strength in attractive served markets, a strong balance sheet, and solid cash flow generation,' he added.
Kaiser Aluminum Corporation's working capital stood at $540.2 million as at Dec. 31, 2013, down $39.9 million or 6.88 percent from $580.1 million on Dec. 31, 2012.
The company's current ratio moved down to 4.59 as on Dec. 31, 2013 from 5.49 as on Dec. 31, 2012.
As of Dec. 31, 2013, the company's cash and cash equivalents were at $169.5 million, down $103.9 million or 38 percent from $273.4 million at Dec. 31, 2012.
Shares of Kaiser Aluminum rose $1.31 or 1.94 percent to close at $68.79 on Monday.
The company earned $27.3 million or $1.44 a share in the fourth quarter compared with $9.1 million or $0.47 a share, a year ago. Analysts on average had predicted profit of $0.87 for the latest quarter.
Revenues for the quarter dropped 0.86 percent to $311.3 million from $314 million last year.
During the quarter, gross margin expanded 399 basis points over previous year period to 19.63 percent.
Total expenses as a percentage of revenues decreased to 86.64 percent from 92.39 percent in the same period last year. That resulted in improvement of 575 basis points in operating margin to 13.36 percent.
The company disclosed operating income of $41.6 million for the fourth quarter compared with $23.9 million in the last year period.
Adjusted EBITDA for the fourth quarter stood at $42 million compared to $36 million in prior year fourth quarter. While adjusted EBITDA margin has improved 203 basis points over prior year period to 13.49 percent.
'We expect a mixture of headwinds and tailwinds. We are beginning to see indications that the inventory overhang in non-plate aerospace products is abating. However, as previously discussed, the industry is experiencing an overhang in aerospace plate inventory that is expected to continue throughout 2014,' said, Jack A. Hockema, president, CEO and chairman.
'Although our outlook for the first half 2014 is cautious, we remain very positive in the long-term outlook for the company. We anticipate continued long-term growth in our overall value added revenue and adjusted EBITDA driven by strong demand for aerospace and automotive applications and improving operating cost efficiencies as we further benefit from the significant capital investments we have made to enhance our potential for long-term value creation. We are well positioned with competitive strength in attractive served markets, a strong balance sheet, and solid cash flow generation,' he added.
Kaiser Aluminum Corporation's working capital stood at $540.2 million as at Dec. 31, 2013, down $39.9 million or 6.88 percent from $580.1 million on Dec. 31, 2012.
The company's current ratio moved down to 4.59 as on Dec. 31, 2013 from 5.49 as on Dec. 31, 2012.
As of Dec. 31, 2013, the company's cash and cash equivalents were at $169.5 million, down $103.9 million or 38 percent from $273.4 million at Dec. 31, 2012.
Shares of Kaiser Aluminum rose $1.31 or 1.94 percent to close at $68.79 on Monday.
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