-
Fabricated Products Full Year Adjusted Operating Income of $91
Million
-
Improved Manufacturing Efficiencies and Underlying Cost
Performance
-
Strong Operating Cash Flow and Increased Liquidity
-
Continued Investment for Future Growth and Competitive
Strength
Kaiser Aluminum Corporation (Nasdaq:KALU) today reported net income
of $24 million and earnings per diluted share of $1.19 for the
fourth quarter ended December 31, 2009. Excluding the positive
impact of approximately $25 million of pre-tax, non-run-rate items,
adjusted net income was $7 million and earnings per diluted share
were $0.35 for the fourth quarter 2009.
For the full year 2009, the Company reported net income of $71
million compared to a reported net loss of $69 million for the full
year 2008. Earnings per diluted share were $3.51 compared to a
loss per diluted share of $3.45 for the years ended December 31,
2009 and 2008, respectively. The full year 2009 earnings results
included approximately $56 million of pre-tax, non-run-rate gains
compared to $207 million of pretax, non-run-rate losses in the
prior year. Significant non-run-rate, non-cash mark-to-market gains
on derivative positions in 2009 and losses in 2008 reflect the
dramatic change in metal prices and currency rates year-over-year.
In addition, non-run-rate losses in 2008 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 Limited. Excluding these pre-tax, non-run-rate items full
year 2009 earnings per diluted share were $1.74 compared to an
adjusted earnings per diluted share of $3.07 in 2008.
Fourth Quarter and Full Year Summary
"We executed well on our key priorities in 2009 and are pleased
with our financial results considering the tough economic and
market environment," said Jack A. Hockema, President, CEO and
Chairman. "Looking back on the year and the results we achieved, I
am even more confident today that our business model is sound and
that we are well positioned for future growth and
profitability."
Hockema continued, "Fabricated Products reported underlying
operating income of $91 million for the full year 2009 and $23
million in the fourth quarter, with the latter reflecting a
sequential increase consistent with the business outlook we
provided last quarter. Although we experienced a significant
decline in shipments year-over-year, our strong base load of
contract business related to the Trentwood expansion mitigated the
impact of lower demand. Lower energy related costs,
significantly improved manufacturing efficiencies, and reductions
in overhead costs further enhanced our overall cost structure and
underlying operating income for the year."
"We also continued to strengthen our financial and competitive
position. During the year we generated approximately $130 million
of cash from operations and working capital improvements and
increased our net cash position by $66 million. We continued to
focus on our long-term strategic objectives to be a low-cost
producer and the supplier of choice. Our new portfolio of Kaiser
Select® plate products for aerospace and general engineering
applications further differentiates our product offering and
provides our customers the opportunity to realize lower processing
costs and enhanced end-product quality. Our investments to
improve our quality, capability, cost effectiveness, and production
capacity continued, and our new world-class extrusion plant in
Kalamazoo has commenced billet casting and is on track to be fully
operational in late 2010," added Mr. Hockema.
Fourth Quarter and Full Year 2009
Consolidated Results
|
(Non GAAP,
Unaudited)*
|
($mm, except per share
amounts)
|
|
|
Quarter
|
Full Year
|
|
4Q09
|
3Q09
|
4Q08
|
2009
|
2008
|
|
|
|
|
|
|
Net Sales
|
$237
|
$252
|
$327
|
$987
|
$1,508
|
|
|
|
|
|
|
Operating Income (Loss) before NRR
1
|
|
|
|
|
|
Fabricated Products
|
$23
|
$20
|
$25
|
$91
|
$142
|
All Other 2
|
|
|
|
|
|
Anglesey-related /
Hedging
|
($5)
|
$3
|
$15
|
$10
|
$20
|
Corporate
|
($9)
|
($10)
|
($9)
|
($38)
|
($46)
|
|
|
|
|
|
|
Consolidated Operating Income before NRR
1,3
|
$9
|
$13
|
$31
|
$63
|
$116
|
|
|
|
|
|
|
Non-Run-Rate Items
|
$25
|
$30
|
($192)
|
$56
|
($207)
|
|
|
|
|
|
|
Reported Operating Income (Loss)
3
|
$34
|
$43
|
($161)
|
$119
|
($91)
|
|
|
|
|
|
|
Net Income (Loss)
|
$24
|
$23
|
($108)
|
$71
|
($69)
|
|
|
|
|
|
|
EPS (diluted, GAAP)
|
$1.19
|
$1.14
|
($5.56)
|
$3.51
|
($3.45)
|
Adjusted EPS 4
|
$0.35
|
$0.27
|
$0.41
|
$1.74
|
$3.07
|
|
|
|
|
|
|
1 NRR = Non-Run-Rate, 2 Includes
Primary/secondary metal sales and metal and GBP hedging
|
3 Totals may not sum due to rounding,
4 Estimated EPS excluding NRR items (net of
tax)
|
* Please refer to GAAP financial statements
|
The Company reported consolidated operating income of $34
million in the fourth quarter 2009 compared to $43 million in the
third quarter 2009. Adjusted for non-run-rate items, consolidated
operating income was $9 million for the fourth quarter 2009
compared to $13 million for the third quarter 2009, reflecting a
sequential increase in Fabricated Products results offset by
realized losses on hedging positions.
Consolidated operating income increased to $119 million for the
full year 2009 from a reported consolidated operating loss of $91
million in 2008, reflecting significant non-cash, non-run-rate
items, primarily related to mark-to-market gains and losses on our
derivative positions due to dramatic changes in metal prices and
currency rates year-over-year. Adjusted for non-run-rate items,
consolidated operating income was $63 million for the year ended
December 31, 2009, compared to operating income of $116 million for
the prior year. The decline in operating income before non-run-rate
items was primarily driven by the recessionary impact on net sales
and the curtailment of the Anglesey smelter operations, and
partially offset by improved manufacturing efficiencies and lower
corporate and overhead costs during the year.
Consolidated net sales for the fourth quarter ended December 31,
2009 decreased approximately $15 million on a sequential basis to
$237 million primarily reflecting lower shipments due to the
curtailment of Anglesey's smelting operations at the end of the
third quarter 2009. For the full year 2009, consolidated net sales
were $987 million compared to $1,508 million reported in 2008. The
decrease reflects lower Fabricated Products shipments due to
materially weaker economic and market conditions, lower shipments
due to the curtailment of Anglesey's smelting operations, and the
impact of significantly lower underlying metal prices compared to
the prior year.
Change in Reporting
As previously announced Anglesey fully curtailed its smelting
operations as of the end of the third quarter 2009 and commenced
operations as a remelt and casting facility. Accordingly, while the
Company continues to reflect Fabricated Products as a separate
business segment, Anglesey related activities, hedging activities
and corporate and other expenses not otherwise allocated to
operations, are now reported within All Other. Prior
periods have been recast to reflect this change in reporting.
Fabricated Products Segment
Results
|
(Non GAAP, Unaudited)*
|
($mm, except per pound amounts)
|
|
|
Quarter
|
Full Year
|
|
4Q09
|
3Q09
|
4Q08
|
2009
|
2008
|
|
|
|
|
|
|
Shipments (lbs, mm)
|
112
|
106
|
123
|
429
|
559
|
|
|
|
|
|
|
Value Added Revenue
|
$129
|
$119
|
$163
|
$513
|
$673
|
|
|
|
|
|
|
Net Sales
|
$236
|
$215
|
$294
|
$897
|
$1,337
|
|
|
|
|
|
|
Average Realized Price ($/lb)
|
|
|
|
|
|
Metal Price1
|
$0.97
|
$0.91
|
$1.06
|
$0.89
|
$1.19
|
Value Added Revenue2
|
$1.14
|
$1.12
|
$1.33
|
$1.20
|
$1.20
|
Total
|
$2.11
|
$2.03
|
$2.39
|
$2.09
|
$2.39
|
|
|
|
|
|
|
Operating Income before NRR3
|
$23
|
$20
|
$25
|
$91
|
$142
|
|
|
|
|
|
|
Non-Run-Rate Items
|
($4)
|
$7
|
($74)
|
($13)
|
($89)
|
|
|
|
|
|
|
Reported Operating Income4
|
$19
|
$26
|
($49)
|
$78
|
$54
|
|
|
|
|
|
|
1 Hedged cost of alloyed metal, 2 Value
Added Revenue = Net Sales - Metal Price
|
3 NRR = Non-Run-Rate, 4 Totals may not sum
due to rounding
|
* Please refer to GAAP financial statements
|
The Fabricated Products segment reported operating income of
approximately $19 million in the fourth quarter 2009, down
sequentially from $26 million reported in the third quarter 2009.
However, operating income excluding non-run-rate items increased
sequentially to $23 million on higher shipments of aerospace and
high strength products.
For the full year ended December 31, 2009, Fabricated Products
reported operating income of $78 million compared to $54 million in
the prior year. Excluding non-run-rate items, operating income
was $91 million in 2009 compared to $142 million in the prior year.
Lower operating income was driven by a significant decline in
overall shipments cushioned by the Company's strong base load of
contract business. Additionally, operating income was favorably
impacted by approximately $25 million due to lower energy and
freight costs and approximately $17 million from improved
manufacturing efficiencies and overhead cost reductions during the
year.
Corporate Highlights
During the year the Company continued to strengthen its
liquidity position with strong operating cash flows and significant
reductions in inventory levels. As a result, the Company was able
to internally fund its strategic investments to improve cost and
product quality and enhance product availability, including the new
Kalamazoo, Michigan extrusion facility. In addition, the Company
maintained its quarterly dividend program throughout the year and
returned approximately $20 million in cash to its shareholders. At
December 31, 2009, total cash and borrowing availability exceeded
$190 million.
Strategic capital spending in 2010 includes the completion of
the Kalamazoo project as well as other investments for operating
efficiencies throughout the Company's operations.
Outlook
"We anticipate ongoing challenges in 2010 as the weak global
economy slowly continues its recovery. While we are optimistic that
the destocking of service center inventories for aerospace
applications has largely abated, we expect increased destocking by
airframe manufacturers as they continue to work through their
inventory overhang. The net effect is that we anticipate our
shipments for aerospace and high strength applications over the
next six months to be slightly improved from the pace set during
the last nine months of 2009," said Mr. Hockema. "We also
anticipate that the gradual recovery in demand throughout the
supply chain will continue its trend from the past nine months,
allowing for steadily improving shipments for general engineering,
automotive and other industrial applications."
"Longer term, the fundamentals for our business remain solid.
The full benefit of the Trentwood expansion has yet to be realized
due to soft market conditions, and the Kalamazoo investment is the
next significant step to enhance our positioning as a low-cost
producer. In addition, Kalamazoo will provide capacity to enable
profitable automotive sales growth driven by increasing demand for
aluminum extrusions to achieve more fuel-efficient vehicles.
Completion of the Kalamazoo facility, along with other significant
capital investments we have made the past few years, rounds out our
platform of focused facilities positioned as low-cost producers and
suppliers of choice for aerospace and defense, general engineering
and automotive applications. With attractive markets and financial
and competitive strength we are well-positioned to capitalize on
new opportunities as the market recovers," concluded Mr.
Hockema.
Conference Call
Kaiser Aluminum Corporation will host a conference call on
February 24, 2010, at 10:00am (Pacific Time); 12:00pm (Central
Time); 1:00pm (Eastern Time), to discuss fourth quarter and full
year 2009 results. To participate, the conference call can be
directly accessed from the U.S. and Canada at (888) 312-3047, and
accessed internationally at (719) 457-2606. A link to the
simultaneous web cast can be accessed on the Company's website at
http://investors.kaiseraluminum.com/events.cfm. A
copy of a presentation will be available for download prior to the
start of the call. An audio archive will be available on the
Company's website following the call.
Kaiser Aluminum Corporation, headquartered in Foothill Ranch,
Calif., is a leading producer of semi-fabricated specialty 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 produce 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.
The Kaiser Aluminum Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6081
Non-GAAP Financial Measures
This earnings release contains certain non-GAAP financial
measures. A "non-GAAP financial measure" is defined as a numerical
measure of a company's financial performance that excludes or
includes amounts so as to be different than the most directly
comparable measure calculated and presented in accordance with GAAP
in the statements of income, balance sheets or statements of cash
flow of the company. Pursuant to the requirements of Regulation G,
the Company has provided a reconciliation of non-GAAP financial
measures to the most directly comparable financial measure in the
accompanying tables.
The non-GAAP financial measures used within this earnings
release are operating profit, net income and earnings per diluted
share, excluding non-run-rate and non-operating gains and losses.
These measures are presented because management uses this
information to monitor and evaluate financial results and trends
and believes this information to also be useful for investors.
This press release contains statements based on management's
current expectations, estimates and projections that constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 involving known and
unknown risks and uncertainties that may cause actual results,
performance or achievements of the Company to be materially
different from those expressed or implied. Kaiser Aluminum cautions
that such forward-looking statements are not guarantees of future
performance or events and involve significant risks and
uncertainties and actual events may vary materially from those
expressed or implied in the forward-looking statements as a result
of various factors. These factors include: (a) disruption in global
financial markets that have reduced the liquidity available to the
Company's customers and the purchasers of products that materially
affect demand for the Company's materials, including commercial
airlines; (b) risk and exposure to the impact of non-performance by
banks committed to provide financing, hedging counterparties,
insurers, customers and suppliers; (c) reduced customer demand
under existing contracts resulting in customers limiting purchases
to contractual minimum volumes or seeking relief from contractual
obligations; (d) risk that customers and suppliers may liquidate or
seek protection under federal bankruptcy laws and reject existing
contractual commitments; (e) pressure to reduce defense spending
and demand for the Company's products used in defense applications
as the U.S. and other governments are faced with competing national
priorities; (f) changes in the markets served by the Company,
including aerospace, defense, general engineering, automotive,
distribution and other markets, including changes impacting the
volume, price or mix of products sold by the Company and the
Company's ability to flex production consistent with changing
demand levels; (g) the Company's ability to lower energy costs,
realize manufacturing efficiencies and complete its expansion and
organic growth projects, equipment and facility upgrades to improve
manufacturing and cost efficiencies and product expansions as
planned and by targeted completion dates; and (h) other risk
factors summarized in the Company's reports filed with the
Securities and Exchange Commission, including the Company's Form
10-K for the year ended December 31, 2009. As more fully described
in these reports, "non-run-rate" items are items that, while they
may occur from period to period, are particularly material to
results, impact costs primarily as a result of external market
factors and may not occur in future periods if the same level of
underlying performance were to occur. All information in this
release is as of the date of the release. The Company undertakes no
duty to update any forward-looking statement to conform the
statement to actual results or changes in the Company's
expectations.
KAISER ALUMINUM CORPORATION AND SUBSIDIARY
COMPANIES
|
STATEMENTS OF CONSOLIDATED INCOME (1)
(2)
|
(Unaudited)
|
(In millions of dollars except share and per share
amounts)
|
|
|
Quarter Ended
December 31,
|
Year Ended
December 31,
|
|
2009
|
2008
|
2009
|
2008
|
|
|
Net sales
|
$ 237.0
|
$ 326.5
|
$ 987.0
|
$ 1,508.2
|
Costs and expenses:
|
|
|
|
|
Cost of products sold:
|
|
|
|
|
Cost of products sold, excluding depreciation, amortization and
other
items
|
182.2
|
356.5
|
766.4
|
1,400.7
|
Lower of cost or market inventory write-down
|
—
|
65.5
|
9.3
|
65.5
|
Impairment of investment in Anglesey
|
—
|
37.8
|
1.8
|
37.8
|
Restructuring costs and other charges
|
(1.0)
|
8.8
|
5.4
|
8.8
|
Depreciation and amortization
|
4.1
|
3.9
|
16.4
|
14.7
|
Selling, administrative, research and development, and
general
|
17.8
|
14.8
|
69.9
|
73.1
|
Other operating benefits, net
|
—
|
(.2)
|
(.9)
|
(1.4)
|
Total costs and expenses
|
203.1
|
487.1
|
868.3
|
1,599.2
|
Operating income (loss)
|
33.9
|
(160.6)
|
118.7
|
(91.0)
|
Other income (expense):
|
|
|
|
|
Interest income (expense)
|
.6
|
(.2)
|
—
|
(1.0)
|
Other (expense) income, net
|
(.1)
|
(.3)
|
(.1)
|
.7
|
Income (loss) before income taxes
|
34.4
|
(161.1)
|
118.6
|
(91.3)
|
Income tax (provision) benefit
|
(10.3)
|
52.8
|
(48.1)
|
22.8
|
Net income (loss)
|
$ 24.1
|
$ (108.3)
|
$ 70.5
|
$ (68.5)
|
Net income (loss) available to common stockholders (3)
|
$ 23.9
|
$ (108.3)
|
$ 68.9
|
$ (68.9)
|
Earnings per share — Basic (3):
|
|
|
|
|
Net income (loss) per share
|
$ 1.20
|
$ (5.56)
|
$ 3.51
|
$ (3.45)
|
Earnings per share — Diluted (3):
|
|
|
|
|
Net income (loss) per share
|
$ 1.19
|
$ (5.56)
|
$ 3.51
|
$ (3.45)
|
|
|
|
|
|
Weighted-average number of common shares outstanding (000):
|
|
|
|
|
Basic
|
20,022
|
19,490
|
19,639
|
19,980
|
Diluted
|
20,186
|
19,490
|
19,639
|
19,980
|
(1) The consolidated financial statements
include the statements of the Company and its wholly owned
subsidiaries and a 49% interest in Anglesey Aluminium Limited
("Anglesey"), which operated as an aluminum smelter until September
30, 2009 and, following that date, remelts and casts secondary
aluminum.
(2) Please refer to the Company's Annual
Report on Form 10-K for the year ended December 31, 2009, for
additional detail regarding the items in the table.
(3) All of the Company's unvested share-based
payment awards that contain non-forfeitable rights to dividends or
dividend equivalents (whether paid or unpaid) are treated as
participating securities and affect the computation of net income
(loss) available to common stockholders and earnings per share
pursuant to the two-class method in accordance with accounting
requirements that became effective in 2009. Earnings per share
data for the quarter and year ended December 31, 2008 were
retrospectively adjusted, to apply the two-class method, as
required by the new requirements.
KAISER ALUMINUM CORPORATION AND SUBSIDIARY
COMPANIES
|
SELECTED OPERATIONAL AND FINANCIAL INFORMATION (1)
(2)
|
(Unaudited)
|
(In millions of dollars except shipments and average
realized third-party sales price)
|
|
|
Quarter Ended
December 31,
|
Year Ended
December 31,
|
|
2009
|
2008
|
2009
|
2008
|
|
|
Shipments (millions of pounds):
|
|
|
|
|
Fabricated Products
|
112.4
|
122.9
|
428.5
|
558.5
|
All Other (3)
|
--
|
35.1
|
113.9
|
133.1
|
|
112.4
|
158.0
|
542.4
|
691.6
|
|
|
|
|
|
Average Realized Third Party Sales Price (per pound):
|
|
|
|
|
Fabricated Products
|
$ 2.10
|
$ 2.39
|
$ 2.09
|
$ 2.39
|
All Other (3) (4)
|
$ --
|
$ .94
|
$ .79
|
$ 1.29
|
Net Sales:
|
|
|
|
|
Fabricated Products
|
$ 236.3
|
$ 293.5
|
$ 897.1
|
$ 1,336.8
|
All Other (3) (4)
|
.7
|
33.0
|
89.9
|
171.4
|
Total Net Sales
|
$ 237.0
|
$ 326.5
|
$ 987.0
|
$ 1,508.2
|
Segment Operating Income (Loss):
|
|
|
|
|
Fabricated Products
|
$ 19.2
|
$ (48.8)
|
$ 78.2
|
$ 53.5
|
All Other (3)
|
14.7
|
(111.8)
|
40.5
|
(144.5)
|
Total Operating Income (Loss)
|
$ 33.9
|
$ (160.6)
|
$ 118.7
|
$ (91.0)
|
Net Income (Loss)
|
$ 24.1
|
$ (108.3)
|
$ 70.5
|
$ (68.5)
|
|
|
|
|
|
Capital Expenditures, net of change in accounts payable
|
$ 8.2
|
$ 32.2
|
$ 59.2
|
$ 93.2
|
(1) The consolidated financial statements
include the statements of the Company and its wholly owned
subsidiaries and a 49% interest in Anglesey Aluminium Limited
("Anglesey"), which operated as an aluminum smelter until September
30, 2009 and, following that date, remelts and casts secondary
aluminum.
(2) Please refer to the Company's Annual Report
on Form 10-K for the year ended December 31, 2009, for additional
detail regarding the items in the table.
(3) All Other is comprised of i)
Anglesey-related activities, including primary aluminum production
prior to September 30, 2009 and secondary aluminum production
thereafter, (ii) hedging activities in respect of our exposure to
primary aluminum price risk and our exposure to British Pound
Sterling exchange rate risk relating to Anglesey's smelting
operations through September 30, 2009, and (iii) corporate and
other activities, the expenses of which are not allocated to other
business units.
(4) Sales of primary aluminum from Anglesey's
smelting operations were recorded on a gross basis due to the
significant risks of inventory loss and, metal price and foreign
currency exchange rate fluctuation. During the fourth quarter
of 2009, these risks were largely eliminated under Anglesey's
remelt operations and accordingly, the Company records sales of
secondary aluminum products net of cost of sales in the fourth
quarter. The Company did not recognize any net revenue relating to
sales of secondary aluminum products in the fourth quarter of 2009.
Average realized third party sales price per pound for All Other
for the quarter ended December 31, 2009 is not comparable to prior
period.
KAISER ALUMINUM CORPORATION AND SUBSIDIARY
COMPANIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS (1)
(2)
|
(Unaudited)
|
(In millions of dollars, except share
amount)
|
|
|
December 31, 2009
|
December 31, 2008
|
|
|
ASSETS
|
Current assets (3)
|
$ 300.7
|
$ 428.7
|
Property, plant, and equipment — net
|
338.9
|
296.7
|
Net asset in respect of VEBA
|
127.5
|
56.2
|
Deferred tax assets — net
|
277.2
|
313.3
|
Other assets
|
41.2
|
50.5
|
Total
|
$ 1,085.5
|
$ 1,145.4
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
Current liabilities (4)
|
$ 123.2
|
$ 235.0
|
Net liability in respect of VEBA
|
.3
|
14.0
|
Long-term liabilities
|
53.7
|
65.3
|
Revolving credit facility and other long-term debt
|
7.1
|
43.0
|
|
184.3
|
357.3
|
|
|
|
Stockholders' equity:
|
|
|
Common stock
|
.2
|
.2
|
Additional capital
|
967.8
|
958.6
|
Retained earnings
|
85.0
|
34.1
|
Common stock owned by Union VEBA subject to transfer
restrictions, at
reorganization value
|
(116.4)
|
(116.4)
|
Treasury stock, at cost, 572,706 shares at both December 31,
2009 and
December 31, 2008
|
(28.1)
|
(28.1)
|
Accumulated other comprehensive loss
|
(7.3)
|
(60.3)
|
Total stockholders' equity
|
901.2
|
788.1
|
Total
|
$ 1,085.5
|
$ 1,145.4
|
(1) The consolidated financial statements
include the statements of the Company and its wholly owned
subsidiaries and a 49% interest in Anglesey Aluminium Limited
("Anglesey"), which operated as an aluminum smelter until September
30, 2009 and, following that date, remelts and casts secondary
aluminum.
(2) Please refer to the Company's Annual Report
on Form 10-K for the year ended December 31, 2009 for additional
detail regarding the items in the table.
(3) Primarily includes Cash and cash
equivalents of $30.3 and $.2, Inventories of $125.2 and $172.3, net
Trade receivables of $83.7 and $98.5, and prepaid expenses and
other current assets of $59.1 and $128.4 at December 31, 2009, and
December 31, 2008, respectively.
(4) Primarily includes Accounts payable of
$49.0 and $52.4, Accrued salaries, wages and related expenses of
$33.1 and $41.2 and Other accrued liabilities of $32.1 and $113.9
at December 31, 2009, and December 31, 2008, respectively.
Reconciliation of Non-GAAP
The following table presents a reconciliation of non-GAAP
measures presented in the earnings release for the quarter ended
December 31, 2009:
|
Fabricated
Products
|
All Other
|
Consolidated
|
GAAP operating income
|
$ 19.2
|
$ 14.7
|
$ 33.9
|
Mark-to-market (loss) gain
|
(.5)
|
31.6
|
31.1
|
Restructuring costs and other charges
|
.9
|
—
|
.9
|
Other non-run-rate items (1)
|
(4.3)
|
(3.0)
|
(7.3)
|
Total non-run-rate adjustments
|
(3.9)
|
28.6
|
24.7
|
Operating income (loss), excluding non-run-rate items
|
$ 23.1
|
$ (13.9)
|
$ 9.2
|
|
|
|
|
GAAP net income
|
|
|
$ 24.1
|
Total non-run-rate adjustments (net of tax)
|
|
|
(16.9)
|
Net income, excluding non-run-rate adjustments (net of tax)
|
|
|
$ 7.2
|
Diluted earnings per share (GAAP)
|
|
|
$ 1.19
|
Diluted earnings per share, excluding non-run-rate items
|
|
|
$ .35
|
(1) Other non-run-rate items represent
non-cash LIFO charges, metal gains, and pre-emergence related
environmental costs for the Fabricated Products segment and
primarily non-cash net periodic benefit costs related to the VEBAs
for All Other.
Reconciliation of Non-GAAP Measures
The following table presents a reconciliation of non-GAAP
measures presented in the earnings release for the year ended
December 31, 2009:
|
Fabricated
Products
|
All Other
|
Consolidated
|
GAAP operating income
|
$ 78.2
|
$ 40.5
|
$ 118.7
|
Mark-to-market gain
|
4.9
|
75.6
|
80.5
|
Restructuring costs and other charges
|
(4.5)
|
(.9)
|
(5.4)
|
Other non-run-rate items (1)
|
(13.2)
|
(6.1)
|
(19.3)
|
Total non-run-rate adjustments
|
(12.8)
|
68.6
|
55.8
|
Operating income (loss), excluding non-run-rate items
|
$ 91.0
|
$ (28.1)
|
$ 62.9
|
|
|
|
|
GAAP net income
|
|
|
$ 70.5
|
Total non-run-rate adjustments (net of tax)
|
|
|
(34.7)
|
Net income, excluding non-run-rate adjustments (net of tax)
|
|
|
$ 35.8
|
Diluted earnings per share (GAAP)
|
|
|
$ 3.51
|
Diluted earnings per share, excluding non-run-rate items
|
|
|
$ 1.74
|
(1) Other non-run-rate items represent non-cash
LIFO charges, metal gains, lower of cost or market inventory
write-down, and pre-emergence related environmental costs for the
Fabricated Products segment and primarily non-cash net periodic
benefit costs related to the VEBAs for All Other.
CONTACT: Kaiser Aluminum
Investor Relations Contact:
Melinda C. Ellsworth
(949) 614-1757
FD
Public Relations Contact:
Dave Quast
(646) 421-5341
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