Kaiser Aluminum’s Q3 2017 net income grows US$5 mln YoY; automotive extrusions drive growth

Leading aluminium value-added company Kaiser Aluminum Corporation announced third quarter 2017 results on Wednesday, October 18. The net income of US$20 million, or US$1.16 earnings per diluted share, was higher from the previous year’s Q3 net income and earnings per diluted share of US$15 million and US$0.82, respectively.

Adjusted net income, excluding non-run-rate items was US$16 million, or $0.90 per diluted share, for Q3 2017, down from adjusted net income of US$19 million, or US$1.02 per diluted share of the corresponding period previous year.

For the first nine months ended September 30, 2017, Kaiser posted net income of US$61 million, or US$3.49 EPS, down from net income of $67 million, or US$3.70 EPS in the same period last year. Adjusted net income, excluding an US$11 million pre-tax loss on non-run-rate items, increased to US$68 million.

Kaiser reported net sales of US$333 million and value-added revenue of US$187 million for Q3 2017, down five per cent year-on-year. First nine months of 2017 net sales stood at US$1 billion, and value-added revenue was also down by three per cent year-on-year at US$593 million despite higher shipments.

Nevertheless, the downstream aluminium value-added company thriving on focussed, continuous innovation, put up a strong operational performance across the platform for the periods under review.

Commenting on the results, Kaiser Chairman and CEO Jack A. Hockema said, "Our third quarter 2017 results were consistent with the market dynamics and business trends we experienced in the first half 2017."

"In addition, as previously discussed, the third quarter reflected normal seasonal demand weakness and higher major maintenance expense. We continued to benefit from improvements across the platform in underlying manufacturing cost efficiency.”