Kaiser Aluminum bullish despite aero overhang

Oct 29, 2013 | 11:31 AM | Michael Cowden

Tags  aluminum, Kaiser Aluminum, MSCI, Metals Service Center Institute, Jack Hockema, aerospace aluminum, automotive aluminum, aluminum plate aluminum extrusions

PALM BEACH, Fla. — Kaiser Aluminum Corp. remains bullish about its long-term prospects in the aerospace and automotive markets despite an inventory overhang in aerospace products.

"Our view is 2012 and 2013 were very good years, and 2014 will be similar or better," chairman, president and chief executive officer Jack Hockema said Oct. 29 in an exclusive interview with AMM during the Metals Service Center Institute’s aluminum products division conference in Palm Beach, Fla.

The Foothill Ranch, Calif.-based company expects the aerospace plate overhang to last through 2014 and possibly into 2015, Hockema said.

An overhang in aerospace extrusions, aerospace drawn tube, aerospace sheet and aerospace cold-finished rod, bar and wire that started in the last quarter of 2012 has continued in 2013, he said. "We ought to see the inventory start to abate, but we just can’t predict when that’s going to be," given the "fragmented" nature of those products, which often go through service centers to machine shops or smaller original equipment manufacturers.....

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