Kaiser Aluminum’s EBITDA stands $22 million lower YoY in the first quarter of 2021

Kaiser Aluminum Corporation, a leading producer of semi-fabricated specialty aluminum products, serving customers worldwide announced first quarter 2021 results.Net sales increased to stand at $324 million, from second half 2020 run-rate of $264 million on higher shipments. On a yearly basis, net sales decreased from $369 million.

Value added revenue increased to $172 million, from second half 2020 run-rate of $153 million driven primarily by increasing demand for the Company’s general engineering and automotive applications.

Adjusted EBITDA stood at $38 million in the first quarter 2021, up $8 million compared to the second half 2020 run-rate. Compared to the record prior year period, adjusted EBITDA decreased $22 million reflecting the total sales impact of approximately $26 million.

Net income was $5 million, compared to net income of $29 million. Excluding the impact of non-run-rate items, adjusted net income was $10 million or $0.64 per diluted share for the first quarter 2021.

 “Solid first quarter 2021 results reflected improvement in each of our end markets compared to the second half 2020 run-rate as pandemic related conditions began to normalize,” said Keith A. Harvey, President and Chief Executive Officer.

 “We also reached a significant milestone in the evolution of the Company as we successfully completed the acquisition of Alcoa Warrick LLC (“Warrick”) on March 31, 2021 adding the attractive and growing packaging end market to our portfolio of served markets,” stated Mr. Harvey.

 “The Warrick facility has been well maintained and is operated by a deeply talented and experienced management team and workforce. For decades, the Warrick rolling mill has served the North American packaging market with a unique and substantial capability in coated and bare products for beverage and food packaging applications. Warrick’s reputation as a quality and strategic supplier to its customer base is solid and well established.

“We expect to continue serving these markets with the intent to meet the growing needs of our customers and further differentiate Warrick as the premier supplier in the markets we serve. Initial discussions with our packaging customers depict strong demand growth and a desire to partner with a domestic supplier that can deliver highly sustainable aluminum can sheet products. As we continue to finalize our strategic path forward, we fully anticipate that our plans will include a number of organic investments designed to maximize the potential of Warrick and to further support our long-term growth,” stated Mr. Harvey.