Kaiser Aluminum reported results for the final quarter and full year of 2021 earlier this week. Despite the global economic struggles faced by the firm, most numbers showed a year-on-year increase for both periods.
In the fourth quarter net sales jumped by 179 percent on the year to US$806 million. Value-added revenue rose by 109 percent to US$316 million, largely thanks to increases in packaging and aerospace/high-strength applications. Adjusted EBITDA increased by US$17 million to US$46 million, and the reported operating income came to US$17 million. Meanwhile, reported net income in the quarter totaled US$2 million.
For the full year Kaiser Aluminum reported net sales of US$2.6 billion, increasing from US$1.2 billion the year before. Value-added revenue came to US$1.1 billion, up by 59 percent on the year. Adjusted EBITDA increased by US$39 million to US$193 million, while the firm’s reported operating income totaled US$64 million. The company recorded a net loss for 2021 of US$19 million, reversing the prior year’s net income of US$29 million.
Keith A. Harvey, President and Chief Executive Officer, said in a press release that 2021 was a challenging year for the firm, but the obstacles last year prepared the company for success in the coming years.
“This past year was transformational for the company, although one with a unique set of operational challenges. As we look ahead, we are confident in the processes and countermeasures we have put in place to address the significant challenges experienced in 2021, setting the stage for stronger performance in 2022. We also achieved a number of major milestones that served to strengthen the strategic positioning of our company as we continue to manage our business for long-term growth and profitability, including our strategic acquisition of the Warrick rolling mill, providing non-cyclic end market diversification of our portfolio and re-entry into the resurging North American aluminum packaging market. With confidence in the continued strength of our markets and the expected long-term growth in our businesses, along with our commitment to continue creating value for our shareholders, in early 2022 we increased our quarterly dividend 7.0% to $0.77 per share, an incremental increase from the 7.5% increase in early 2021.”
This year Kaiser Aluminum expects a rise in value-added revenue of between 20 and 25 percent and a rise in consolidated adjusted EBITDA margin of 17 to 20 percent.