California semi-fabricated specialty aluminium producer Kaiser Aluminum released results for the final quarter and full year of 2020 earlier this week. Despite economic challenges presented by the novel coronavirus, the firm returned solid results largely due to robust demand in automotive, defense, and general engineering sectors.
For the full year Kaiser reported a net sales of US$1,173 million, with value-added revenue falling by 19 percent to US$697 million. Last year’s net income totaled US$29 million, while adjusted net income for the year came to US$48 million. Adjusted EBITA totaled US$154 million for the year.
In the fourth quarter of 2020 Kaiser sold 119 million pounds of product, better by 10 million pounds on the quarter. Net sales rose to US$272 million, with value-added revenue dropping by US$2 million to US$152 million. Net income for the quarter rose to US$6 million, while adjusted EBITDA fell by US$3 million to US$29 million.
Keith A. Harvey, President and Chief Executive Officer, said in a press release that the latest results are excellent considering the challenges present in the market.
“Our results for the fourth quarter and full year 2020 reflect solid execution under very challenging business conditions, as we navigated the significant decline in commercial aerospace demand during the second half of the year while managing strong demand for our defense, general engineering and automotive applications. For the full year 2020, value added revenue of $697 million declined approximately 19%, reflecting a strong first quarter, followed by significant COVID-19 related disruptions to our operations and end markets during the remainder of the year. Despite the decline in value added revenue, we reported a solid 22.1% adjusted EBITDA margin, reflecting our ability to quickly flex costs and operating levels in response to rapidly changing business conditions. These results were achieved with record safety performance for the entire year, a significant accomplishment and a testament to our people.”
“Our business model is to always be well-prepared for economic adversity, and the strength of our balance sheet and financial flexibility served us well, facilitating our ability to maintain our quarterly dividend and to opportunistically pursue further growth with our pending acquisition of Alcoa Warrick LLC, a leading producer of high margin beverage and food can stock for the North American packaging industry,” he continued. “With financial strength and continued confidence in the long-term outlook for our business, in early 2021 we increased our quarterly dividend by 7.5% to $0.72 per share, up from the 12% increase in early 2020, marking the tenth consecutive year we have increased the quarterly dividend.”