Shares of Foothill Ranch-based Kaiser Aluminum Corp. jumped 7% on Tuesday after it posted a second-quarter profit that was more than double analysts’ expectations.
The company makes parts for the aerospace and auto industries.
Kaiser announced a quarterly profit of $35 million after posting a loss of $2.5 million the same quarter a year ago.
“The company’s excellent results for both the quarter and year-to-date reflect strong performance in both our fabricated products and primary products segments,” said Chief Executive Jack Hockema.
Strong demand seen in the aerospace and defense industries fueled a 9% increase in revenue to $385 million.
Expenses were down to $322 million versus $345 million a year ago. Operating income was up 81% from the prior year.
The company said it is investing $230 million back into the business to improve operations.
On Monday, Kaiser said it planned to invest $91 million into building a new Midwestern facility, as well as upgrading three existing operations. The location of the new facility is to be announced.
The company emerged from bankruptcy reorganization a year ago.
