Loading...
•
Mar 31, 2021
Kaiser Aluminum Q1 2021 Earnings Report
Reported solid first quarter results with improvement in served end markets and successfully completed the acquisition of Alcoa Warrick LLC.
Key Takeaways
Kaiser Aluminum Corporation reported first quarter 2021 results with net sales of $324 million and net income of $5 million, or $0.28 per diluted share. Adjusted net income was $10 million, or $0.64 per diluted share. The company successfully completed the acquisition of Alcoa Warrick LLC, adding the packaging end market to its portfolio.
Net sales reached $324 million, with value added revenue at $172 million.
Net income was $5 million, with net income per diluted share at $0.28.
Adjusted EBITDA was $38 million, with an adjusted EBITDA margin of 21.8%.
Successfully completed the $670 million acquisition of Alcoa Warrick LLC.
Forward Guidance
The company updated the full year outlook for 2021 to reflect approximately $375 million to $400 million of additional value added revenue for the remainder of the year and reiterate expectation of an adjusted EBITDA margin comparable to 2020.
Positive Outlook
- Aerospace/high strength demand to continue improving through the balance of the year driven by growth in defense related programs and business jet production.
- Demand for automotive applications remains robust with multiple new programs successfully launched and underway.
- Strength in demand for general engineering applications continues to reflect strong underlying demand driven by growth in semiconductor and automotive applications, strong service center demand, and restocking in the supply chain.
- The outlook for aluminum packaging is very promising with favorable demand and industry dynamics.
- North American can demand was up 5% year-over-year in 2020 and projected to increase an additional 3% to 5% in 2021 and beyond.
Challenges Ahead
- Demand for products related to large commercial airframe production appears to have stabilized with continued recovery through 2023-2024.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...