Kaiser Aluminum reports 23% decline in net sales in 2020

Kaiser Aluminum Corporation, a leading producer of semi-fabricated specialty aluminum products, serving customers worldwide full year 2020 results. Net sales stood at $1,173 million compared to $1,514 million in the prior year period.

Value added revenue dropped to $697 million from $856 million in the prior year period, reflecting a 20% decrease in shipments primarily reflecting the COVID-19 impact on demand for the Company’s aerospace/high strength applications in the second half 2020.

Adjusted EBITDA was $154 million, a decrease of $59 million compared to the prior year period. Reported operating income came in at $81 million. Reported net income stood at $29 million in 2020.

Excluding the impact of non-run-rate items, adjusted net income was $48 million or $3.01 per diluted share for the full year 2020.

 “For the full year 2020, value added revenue of $697 million declined approximately 19%, reflecting a strong first quarter, followed by significant COVID-19 related disruptions to our operations and end markets during the remainder of the year. Despite the decline in value added revenue, we reported a solid 22.1% adjusted EBITDA margin, reflecting our ability to quickly flex costs and operating levels in response to rapidly changing business conditions. These results were achieved with record safety performance for the entire year, a significant accomplishment and a testament to our people,” said Keith A. Harvey, President and Chief Executive Officer.

“Our business model is to always be well-prepared for economic adversity, and the strength of our balance sheet and financial flexibility served us well, facilitating our ability to maintain our quarterly dividend and to opportunistically pursue further growth with our pending acquisition of Alcoa Warrick LLC, a leading producer of high margin beverage and food can stock for the North American packaging industry. With financial strength and continued confidence in the long-term outlook for our business, in early 2021 we increased our quarterly dividend by 7.5% to $0.72 per share, up from the 12% increase in early 2020, marking the tenth consecutive year we have increased the quarterly dividend,” stated Mr. Harvey.

“For the full year 2021, we anticipate total value added revenue up 5% to 10% year-over-year and an adjusted EBITDA margin comparable to 2020 driven by strong growth in automotive, defense and general engineering applications.”