Kaiser Aluminum’s net sales declined by 32% in the third quarter of 2020

Kaiser Aluminum Corporation, a leading producer of semi-fabricated specialty aluminium products, announced third quarter and first nine months 2020 results.

In the third quarter of 2020, net sales were $256 million compared to $375 million in the prior year period, reflecting a 29% decrease in shipments and a 3% decrease in average selling price.

Value added revenue stood at $154 million from $215 million in the prior year period. Adjusted EBITDA came in at $30 million in the third quarter 2020, down $27 million year-on-year.

Net income was $0.4 million compared to net income of $25 million for the prior year period. Adjusted net income was $5 million, compared to adjusted net income of $29

“Solid third quarter results were driven by a rebound in automotive demand and continued strength in demand for our defense and general engineering applications,” said Keith A. Harvey, President and Chief Executive Officer.

“Strong execution by our employees enabled us to deliver these results in very challenging conditions as we continued to adjust to varying market dynamics influenced by the ongoing pandemic. Demand for our commercial aerospace applications in the third quarter declined sharply from the strong first half 2020 due to weaker market conditions.”

In the first nine months of 2020, net sales were $901 million compared to $1.1 billion in the prior year period, reflecting a 19% decrease in shipments and a 3% decrease in average selling price.

Value added revenue stood at $546 million from $642 million in the prior year period.

“Following a record 2019 and first quarter 2020, the impact of the COVID-19 pandemic on aerospace/high strength applications drove the majority of the decline. In addition, the second quarter impact on automotive applications and the planned exit of other non-strategic applications further impacted valued added revenue and shipments year-over-year,” according to the company.

Adjusted EBITDA was $124 million, down $36 million compared to the prior year period. Net income was $23 million compared to net income of $73 million. Adjusted net income was $41 million, compared to adjusted net income of $82 million.