Kaiser Aluminum Corp. beat Wall Street expectations on revenue and earnings for the fourth quarter and full year.
The Foothill Ranch-based maker of semi-fabricated aluminum products posted income of $25 million for the quarter, or $1.37 per share. Its 2016 earnings totaled $92 million, or $5.09 per share, compared to a loss of $237 million, or a $13.76 per diluted share, for the prior year.
“The net loss in the prior period reflected a $307 million after-tax, non-cash, non-run-rate charge associated with the termination of defined benefit accounting and removal of the assets and liabilities related to the ongoing union voluntary employee beneficiary association from the company’s consolidated balance sheet,” according to the company.
Net income—adjusted for non-recurring gains—was $87 million or $4.83 per share for the full year, and $23 million or $1.27 per share for the fourth quarter.
Analysts expected earnings of $1.18 for the quarter and $4.8 per share for the year.
The company also beat Wall Street’s revenue outlook for the December quarter.
Its net sales totaled $332 million, compared with analysts’ expectations of $328.4 million. Full-year revenue totaled $1.331 billion; analysts anticipated $1.33 billion.
Chief Executive Jack Hockema said Kaiser Aluminum’s capital spending in 2016 was $76 million, “predominantly focused on two strategic projects: the $150 million five-year efficiency and modernization project at our Trentwood rolling mill in Spokane, Washington and the installation of a new press line at our Sherman, Texas facility to further expand our automotive extrusion capacity.”
The company also returned “approximately $66 million of cash to shareholders through quarterly dividends and share repurchases,” according to Hockema, who added that going forward Kaiser Aluminum will “seek complementary inorganic growth opportunities.”
Kaiser reported results after markets closed Tuesday. Its shares traded recently at about $80 and a $1.4 billion market cap.