Kaiser Aluminum posts net loss of $237 mln for the year ended Dec 31, 2015

Full Year 2015 Results and Business Highlights:

• Net Sales $1.4 Billion; Value Added Revenue Up 8% to $790 Million
• Operating Loss $346 Million; Adjusted EBITDA $183 Million; EBITDA Margin 23%
• Record Shipments of Heat Treat Plate and Automotive Extrusions
• Expanded Sales Margins - Improved Pricing and Lower Contained Metal Costs
• Continued Investments For Further Growth, Enhanced Efficiency and Quality
• Returned ~$77 Million to Shareholders Through Quarterly Dividends and Share Repurchases

Kaiser Aluminum Corporation reported a net loss of $237 million, or $13.76 loss per diluted share, for the year ended December 31, 2015, including the previously announced $307 million after-tax, non-run-rate charge associated with the termination of defined benefit accounting and the removal of the assets and liabilities related to the ongoing union voluntary employee beneficiary association ("Union VEBA") from the Company's consolidated balance sheet. Excluding the impact of non-run-rate items, full year 2015 adjusted net income was $72 million, or $3.95 per diluted share. Adjusted net income and earnings per diluted share in 2015 also reflected a higher effective tax rate due to a $5 million fourth quarter tax charge related to year-end reassessment of expiring state tax net operating loss carryforwards. For the year ended December 31, 2014, adjusted net income was $63 million, or $3.38 per diluted share.

Value added revenue for the full year 2015 was a record $790 million, an increase of approximately $57 million, or 8% compared to $733 million in 2014. The increase in value added revenue reflected record shipments driven largely by higher heat treat plate volume and continued growth in automotive extrusions, including the significant ramp-up in the Ford F-150 program, along with expanded sales margins. Previous investments at the Company's Spokane, Washington facility ("Trentwood") and across its automotive manufacturing platform to expand capacity and enhance overall throughput facilitated the 2015 results.

Adjusted consolidated EBITDA for the full year 2015 was $183 million, an increase of approximately $21 million, or 13% compared to full year 2014. The record adjusted consolidated EBITDA reflected a $34 million positive sales impact from higher shipments and favorable pricing and product mix. The sales impact was partially offset by higher costs primarily related to the Company's growth in its served markets, long-term incentive compensation and employee benefit-related costs. Although the Company continued to benefit from previous investments to improve manufacturing cost efficiency, the gains realized in 2015 were more than offset by growth-related costs and inefficiencies associated with the approximately 70% increase in automotive extrusions over the past two years. Adjusted consolidated EBITDA as a percentage of value added revenue increased to 23.2% in 2015 compared to 22.1% in the prior year as a result of higher operating leverage and expanded sales margins.