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Jun 30, 2021
Kaiser Aluminum Q2 2021 Earnings Report
Reported a net loss but adjusted earnings per share, reflecting the impact of the Warrick Rolling Mill acquisition and improvements in end markets.
Key Takeaways
Kaiser Aluminum Corporation reported a net loss of $22 million for Q2 2021, which includes pre-tax charges of $36 million related to senior notes refinancing. However, the company's adjusted net income was $16 million, or $1.00 per diluted share, and adjusted EBITDA was $59 million, driven by the Warrick Rolling Mill acquisition and improvements in end markets.
Net sales were $741 million and value added revenue was $318 million.
Net loss was $22 million, or $1.42 per diluted share, including pre-tax charges of $36 million related to senior notes refinancing.
Adjusted net income was $16 million, or $1.00 per diluted share.
Adjusted EBITDA was $59 million, with an adjusted EBITDA margin of 18.5%.
Revenue by Segment
Forward Guidance
Kaiser Aluminum anticipates improving trends across its end markets with strong secular demand growth for aerospace, packaging, and automotive along with solid market dynamics continuing to support growth in its general engineering applications.
Positive Outlook
- Aerospace is beginning to build positive momentum as commercial air travel recovers.
- Aerospace/high strength demand is expected to continue improving through the balance of 2021 driven by growth in defense related programs and business jet production.
- Demand for the Company’s automotive applications remains robust with multiple new programs successfully launched and underway.
- Demand for the Company’s general engineering applications remains strong, led by service center restocking and stronger demand as the markets recover from the pandemic.
- North American aluminum packaging markets are expected to remain in deficit for the foreseeable future as the strongly preferred, North American supply struggles to keep pace with North American demand.
Challenges Ahead
- Integration Costs Impacted Results
- Higher Overhead Impacted Results
Historical Earnings Impact
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Avg. Return Before/After Earnings
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