Foothill Ranch-based aluminum products maker Kaiser Aluminum Corp. fell short of Wall Street’s third-quarter profit expectation while topping what analysts were expecting on revenue.
The company, which shapes aluminum into custom pieces for the defense, aviation and auto industries, reported a quarterly profit of $6 million, flat with a year earlier and short of the $8 million expected on average by analysts.
The company blamed higher costs from major maintenance projects at its plants and production delays at a new Kalamazoo, Mich., plant that’s still getting up to speed, according to Chief Executive Jack A. Hockema.
Sales came in at $263 million, up 4% from a year earlier and topping the $259 million expected by Wall Street.
Investors seized on the profit shortfall and tepid words about the fourth quarter, sending Kaiser’s shares closed down about 2% on a market value of about $850 million.
Kaiser didn’t offer a specific outlook for the fourth quarter.
It said it sees revenue coming in lower than in the third quarter. Factory maintenance is set to continue at about the same cost as in the third quarter, the company said.
Analysts have been expecting a fourth-quarter profit of $9.6 million, which would be up 46% from a year earlier. Sales are pegged at $266 million, up 12%.
