Semi-fabricated aluminium firm Kaiser Aluminum Corporation released third-quarter results on Wednesday, besting Wall Street forecasts for both the just-ended quarter and the year-to-date financials.
The third quarter saw Kaiser sell US$393 million in product, good for an 18-percent increase year-on-year, with US$205 million consisting of value-added material, better by 10 percent than last year’s third-quarter total. Net income for the quarter totaled US$22 million, while adjusted EBITDA figured at US$47 million, a 10-percent bump year-on-year.
Aerospace demand pushed the bottom line in the quarter, growing by 14 percent year-on-year. General engineering applications rose by 11 percent as well, offsetting a 5-percent fall-off in automotive products.
For the first nine months of 2018, Kaiser reported net sales of US$1.2 billion, with US$618 million of that total made up of value-added products. The firm’s net income for the period came to US$68 million, and adjusted EBITDA totaled US$150 million.
Aerospace again nudged the bottom line in the period with a 4-percent increase year-on-year. Automotive extrusions increased by 1 percent, while general engineering products performed an 8-percent leap compared to last year’s nine-month total.
Jack A. Hockema, Chairman and Chief Executive Officer, was optimistic for the firm’s future due to acquisitions and improvements made over the course of the third quarter.
“Although the tariffs have negatively impacted short-term results, we continue to anticipate that the long-term impact to us will be neutral to slightly positive should the tariffs remain in place.
“For the full year 2018, we continue to anticipate mid-single-digit growth in shipments and value added revenue with adjusted EBITDA margin in the mid-20 percent range. We expect continued underlying demand strength in the fourth quarter 2018 with moderating destocking in the aerospace supply chain and normal seasonality in industrial demand. Planned major maintenance expense in the fourth quarter is expected to be similar to the third quarter 2018; however, the one week of planned downtime for maintenance on the hot line and large stretcher at Trentwood that was previously planned for the fourth quarter 2018 has been re-scheduled for mid-2019.”
Founded in 1946, Kaiser Aluminum Corporation is among the United States’ top providers of semi-fabricated specialty aluminium products. Its customers include leading firms in the aerospace and general engineering sectors, as well as companies seeking high-strength or custom automotive and industrial applications. Kaiser Aluminum produces value-added sheet, plate, extrusions, rod, bar, tube and wire products at its North American operations. The firm’s stock is listed in the Russell 2000 index and the S&P Small Cap 600 index.