Kaiser Aluminum Corp. reported revenue and earnings for the June quarter that beat Wall Street expectations.
The Foothill Ranch-based maker of semi-fabricated aluminum products posted net income of $25 million, or $1.47 per share, up from $19 million and $1.02 per share from the prior year period. Analysts expected earnings of 99 cents per share.
Its net income was adjusted for non-recurring items that the company said included “an $18 million pre-tax impairment charge to reduce goodwill associated with the January 2011 acquisition of Alexco [a maker of] hard alloy extruded shapes and a $12 million pre-tax mark-to-market loss related to commodity hedges,” according to the company.
Kaiser’s sales for the second quarter that ended June 30 totaled $356 million, up 6.2% from $335 million in
The second quarter of 2016, “reflecting 3% higher shipments and a 3% increase in average selling price.” Analysts expected revenue of $349.6 million.
Chief Executive Jack Hockema said “reduced aerospace shipments were more than offset by year-over-year growth in shipments for automotive extrusions and general engineering applications driven by new automotive program launches and strong industrial demand.” The company also “benefited from favorable scrap material prices” and its Trentwood facility “performed significantly better than anticipated despite project-related construction activity, major equipment outages and inefficient material flow.”
Kaiser Aluminum, which has a market value of about $1.6 billion, continued “proactive strategic investments in the core business” during the quarter and “returned approximately $40 million of cash to shareholders,” Hockema said.
The firm employs 60 people at its headquarters.
