Exhibit
99.1
Century
Reports 2010 Earnings
MONTEREY, CA.
February 15, 2011 -- Century Aluminum Company (NASDAQ: CENX)
reported net income of $65.3 million ($0.65 per basic and $0.64 per
diluted common share) for the fourth quarter of
2010. Financial results were negatively impacted by a
mark-to-market loss on forward contracts of $5.7 million primarily
related to LME price protection options and by a contractual
termination pension benefit charge of $4.6 million due to the
continued curtailment of the Ravenswood
facility. Changes to the Century of West Virginia
retiree medical benefits program increased current quarter results
by $56.7 million with an associated discrete tax benefit of $2.0
million. Cost of sales for the quarter includes a $15.9
million net after-tax charge for the portion of power costs at
Hawesville payable by the previous power supplier per the terms of
the power agreements.
For the fourth
quarter of 2009, Century reported a net loss of $24.4 million
($0.28 per basic and diluted common share). Financial
results were negatively impacted by net after-tax expense of $11.5
million related to the purchase of downside aluminum price
protection for a portion of Century’s U.S. production through
2010, and a net after-tax charge of $5.3 million for losses on
early extinguishment and modification of
debt. Financial results were positively impacted
by a $6.6 million benefit related to discrete income tax
adjustments. Cost of sales for the fourth quarter of
2009 included a $17.2 million net after-tax charge for the portion
of power costs at Hawesville payable by the previous power supplier
per the terms of the power agreements.
For 2010, the
company reported net income of $60.0 million ($0.59 per basic and
diluted common share). These results were negatively
impacted by a mark-to-market loss on forward contracts of $10.5
million primarily related to LME price protection options and by a
contractual termination pension benefit charge of $4.6 million due
to the continued curtailment of the Ravenswood facility. Changes to
the Century of West Virginia retiree medical benefits program
increased results by $56.7 million with an associated discrete tax
benefit of $2.0 million. Tax benefits related to the
release of tax reserves no longer required positively impacted
results by $2.1 million for the year. Cost of sales for the year
includes a $63.2 million net after-tax charge for the portion of
power costs at Hawesville payable by the previous power supplier
per the terms of the power agreements.
For 2009, the
company reported a net loss of $206.0 million ($2.73 per basic and
diluted common share). These results were negatively
impacted by several items, including: a net after-tax
charge of $41.7 million for costs associated with production
curtailments at U.S. smelters; a $73.2 million net after-tax
impairment charge associated with the divestiture of our alumina
and bauxite investments; a net after- tax charge of
$11.0 million related to the purchase of downside aluminum price
protection for a portion of our U.S. production through 2010; and a
net after-tax charge of $4.7 million for losses on early
extinguishment and modification of debt. 2009 results
were positively impacted by a net after-tax benefit of $57.8
million, primarily from realized and unrealized gains related to
the termination of the existing power contract and its replacement
with a new power contract at Hawesville and a $14.3 million benefit
related to discrete income tax adjustments. Net
after-tax inventory lower of cost or market adjustments of $33.6
million favorably impacted the yearly results. Cost of
sales for 2009 included a $31.6 million net after-tax charge for
the portion of power costs at Hawesville payable by the previous
power supplier per the terms of the power agreements.
Sales for the
fourth quarter of 2010 were $316.9 million compared with $256.8
million for the fourth quarter of 2009. Shipments of primary
aluminum for the 2010 fourth quarter were 148,923 tonnes, compared
with 147,700 tonnes shipped in the year-ago quarter. Sales for 2010
were $1,169 million compared with $899 million for 2009, and total
2010 primary aluminum shipments of 585,395 tonnes compared with
605,126 tonnes shipped in 2009.
"Global
economic growth has improved over the last several quarters, with
business increasing across most end-markets," commented Logan W.
Kruger, President and Chief Executive Officer. "In
China, consumer activity and industrial production have
reaccelerated since last spring despite a variety of government
actions to control inflationary pressures. Other
developing regions also remain buoyant, although inflation is a
developing trend in these regions as well. On the other
hand, certain large markets, such as construction, remain
historically weak in the U.S. and Europe. Aluminum
inventories continue to be high, a situation that may be
exacerbated by new and restarted capacity expected to come on-line
over the next several months. In summary, we believe the
risks of the current market environment are reasonably balanced; it
is in this context that we are managing the company."
"We are pleased
with Century's progress during the closing months of 2010 and the
beginning of 2011," continued Mr. Kruger. "At
Hawesville, we have concluded a new five-year labor agreement and
are ahead of plans to restart the potline that was curtailed during
the financial crisis. We are continuing to advance the
complex process required for a potential restart of the Ravenswood
smelter. We have built strong liquidity and reduced
structural costs as well as long-term obligations. These
accomplishments should help to protect the company during periods
of volatility that inevitably occur in commodities markets and
provide the underpinnings to grow the company in a deliberate
manner. Toward this end, we are working on high-return,
low-risk growth programs at
