Kaiser Aluminum Swings To Profit In Q4 - Update

(RTTNews) - Kaiser Aluminum Corp. (KALU: News ) a maker of fabricated aluminum products, on Tuesday reported a profit for the fourth quarter compared to a loss in the year-ago period as a hedging gain as well as lower costs and expenses offset a 27% decline in sales.

The Foothill Ranch, California-based company reported fourth-quarter net income available to common stockholders of $23.9 million or $1.19 per share, compared to loss of $108.3 million or $5.56 per share in the previous-year quarter.

Excluding the positive impact of approximately $25 million of pre-tax, non-run-rate items, adjusted earnings for the quarter increased to $0.35 per share from $0.27 per share in the same period last year. On average, three analysts polled by Thomson Reuters expected the company to earn $0.27 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter were $237.0 million, down 27.4% from $326.5 million in the comparable quarter last year.

Total costs and expenses for the quarter declined to $203.1 million from $487.1 million in the prior-year quarter. The year-ago period's results include impairment of investment in Anglesey of $37.8 million, lower of cost or market inventory write-down of $65.5 million and restructuring costs and other charges of $8.8 million.

Operating income for the quarter was $33.9 million compared to operating loss of $160.6 million in the year-ago period.

For fiscal year 2009, Kaiser reported net income available to common stockholders of $68.9 million or $3.51 per share, compared to net loss of $68.9 million or $3.45 per share in the previous year.

The results for the year include about $56 million of pre-tax, non-run-rate gains compared to $207 million of pretax, non-run-rate losses in the prior year. The non-run-rate, non-cash mark-to-market gains on derivative positions in the year as well as losses in the prior year reflect the dramatic change in metal prices and currency rates year-over-year. In addition, non-run-rate losses in the prior year included a lower of cost or market inventory write-down driven by the severe decline in metal prices and the impairment of the investment in Anglesey Aluminium Ltd.

Excluding the pre-tax, non-run-rate items, earnings for the year fell to $1.74 per share from $3.07 per share in the previous year. Analysts expected the company to report earnings of $1.67 per share for the year.

Net sales for the year declined 34.6% to $987.0 million from $1.51 billion in the prior year, but topped analysts' consensus revenue estimate of $972.34 million.

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