Foothill Ranch-based Kaiser Aluminum Corp. on Tuesday said its quarterly profits more than doubled from a year ago, sending its shares soaring.
The company’s stock gained as much as 10% before ending the day with a 5% gain on a market value of about $1.5 billion.
The company said it earned $24 million for the quarter, double the profits it reported for the same period a year ago.
Revenue for the quarter rose 7% to $360 million, just shy of analysts’ expectations of $363 million.
Kaiser also reported earnings for the full year at $101 million on sales of $1.5 billion. Sales increased 11% over a year ago.
The company takes aluminum and forges it into sheets, plates, extrusions, forgings, rods, bars and tubes for customers. Kaiser produces more than 500 million pounds of products a year.
Kaiser said it got a boost from strong sales of fabricated products to its aerospace and defense customers.
“We continue to deliver excellent results as we capitalize on strong demand for aerospace and defense-related products,” chief executive Jack Hockema said.
Kaiser has been on a growth surge since it emerged from bankruptcy in 2006.
Hockema says the company is increasing its exports and is also considering growing through buying another company.
“We have significant financial capacity and flexibility to pursue additional growth initiatives,” he said.
Also on Tuesday, The Michigan Economic Growth Authority said Kaiser was granted a $3.7 million tax credit to take up 435,000 square feet in Kalamazoo, employing about 300 people. Kaiser is expected to invest about $80 million in the development. The space was redeveloped from a former General Motors Corp. metal-stamping plant.
Last week Kaiser said it was investing an additional $14 million to expand and upgrade facilities in Oklahoma, Texas and Washington.
