California semi-fabricated specialty aluminium producer Kaiser Aluminum announced results for the first quarter of the year yesterday. Totals were generally ahead of the fourth quarter but down from last year’s first quarter as the firm sees a return to pre-COVID-19 trends.
In the first quarter Kaiser shipped 137 million pounds of product, besting last quarter’s total of 119 million tons, but falling short of last year’s first quarter total of 156 million pounds. Net sales for the quarter came to US$324 million, bettering the prior quarter’s total of US$272 million, but also off for the year from last year’s quarter total of US$369 million.
Net income for the year’s opening quarter totaled US$5 million, down both from the prior quarter’s total of US$6 million, and quite a bit below the previous first quarter’s total of US$29 million. Adjusted EBITDA’s pattern was similar, with the quarter’s total of US$38 million was slightly ahead of Q4’s total of US$31 million, but off from the last Q1’s total of US$59 million.
Keith A. Harvey, President and Chief Executive Officer said in a press release that the company is beginning to experience a bounce back to pre-coronavirus days.
“Solid first quarter 2021 results reflected improvement in each of our end markets compared to the second half 2020 run-rate as pandemic related conditions began to normalize. Value added revenue of $172 million increased 12% compared to the second half 2020 run-rate driven by double-digit growth in our general engineering and automotive end markets and continued strength in demand for our defense applications. Adjusted EBITDA of $38 million increased 25% compared to the second half 2020 run-rate with adjusted EBITDA margin a solid 21.8%, further demonstrating strong operating leverage and improving efficiencies.”
Harvey was bullish in his view of the firm’s financials for the balance of the year.
“Prior to completion of the acquisition, our outlook for the full year 2021 anticipated total value added revenue up 5% to 10% year-over-year and an adjusted EBITDA margin comparable to 2020 driven by strong growth in automotive, defense and general engineering applications. With the acquisition of Warrick now completed, we have updated the full year outlook for 2021 to reflect approximately $375 million to $400 million of additional value added revenue for the remainder of the year and reiterate our expectation of an adjusted EBITDA margin comparable to 2020,” he explained.