Kaiser Aluminum Introduces Energy Surcharge
June 30 2008 - 8:00AM
Business Wire
Kaiser Aluminum (NASDAQ:KALU) today announced that beginning July 1
it will incorporate surcharges for all new orders of fabricated
aluminum products. The decision is based on an effort to reduce
exposure to rising costs for natural gas, electricity and diesel
fuel. �These surcharges are essential to mitigate the extraordinary
rise in costs related to energy that we have been absorbing for
several years,� said Jack A. Hockema, president, chairman and CEO
of Kaiser Aluminum. �Commodity prices for natural gas and diesel
fuel leapt roughly 60 percent in May compared to the 2007 average.
These energy prices are spiraling and highly volatile, so we�ve
elected to introduce a surcharge as the most transparent method to
recover these costs.� The surcharges are based on a calculation
tied to indices provided by the U.S. Department of Energy and will
be updated on a monthly basis. Customers can view the formulas for
calculating surcharges on the Kaiser Aluminum Web site at
www.kaiseraluminum.com. Up-to-date information on how these
surcharges impact specific products will also be included on the
site. �We�re currently evaluating methods to address the
significant increases in the costs of alloying materials, such as
magnesium and copper,� Hockema added. �We also continue our
aggressive pursuit of cost reduction initiatives designed to offset
other inflationary cost pressures.� Kaiser Aluminum, headquartered
in Foothill Ranch, Calif., is a leading producer of fabricated
aluminum products, serving customers worldwide with
highly-engineered solutions for aerospace and high-strength,
general engineering, and custom automotive and industrial
applications. The company�s North American facilities annually
produce more than 500 million pounds of value-added sheet, plate,
extrusions, forgings, rod, bar and tube products, adhering to
traditions of quality, innovation and service that have been key
components of our culture since the company was founded in 1946.
The company�s stock is included in the Russell 2000� index. For
more information, please visit www.kaiseraluminum.com. F-1097
Certain statements in this release relate to future events and
expectations and, as a result, constitute forward-looking
statements involving known and unknown risks and uncertainties that
may cause actual results, performance or achievements of the
company to be different from those expressed or implied in the
forward-looking statements. Important factors that could cause
actual results to differ materially from those in the
forward-looking statements include: (a) the effectiveness of
management's strategies and decisions; (b) the ability of the
company to effectively recover higher costs; (c) the company�s
ability to reduce costs to mitigate inflationary pressure; (d)
adverse changes in economic or aluminum industry conditions
generally; (e) adverse changes in the markets served by the
company, including the aerospace, defense, general engineering,
automotive, distribution and other markets; (f) the company's
ability to leverage its technologies and the Kaiser Production
System methodology; and (g) the other risk factors summarized in
the company's Form 10-K for the year ended December 31, 2007 and
other reports filed with the Securities and Exchange Commission.
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