Aluminum Corp.s profits narrowed in the third quarter as
a continued aerospace inventory overhang, construction projects
and maintenance expenses dented results.
The Foothill Ranch,
Calif.-based company reported net income of $25.4 million for
the three months ended Sept. 30, down 13 percent from $29.2
million in third quarter of 2012, as sales fell 4.7 percent to
$319.9 million, the company reported after market close Oct.
income for the first nine months of 2013 fell 1 percent to
$77.5 million compared with same period last year as sales
declined 5.7 percent to $986.2 million.
shipments of 141.1 million pounds in the third quarter, down
4.3 percent from 147.5 million pounds in the third quarter of
2012. Shipments in the first nine months of 2013 totaled 426.5
million pounds, off 5.5 percent from 451.4 million pounds in
the year-ago period.
reflected "manufacturing inefficiencies" which Kaiser said were
related to construction of its new casting complex and the
continued expansion of its Trentwood facility in Spokane,
Wash., as well as an "extended" planned equipment outage at its
Newark, Ohio, facility.
expects issues related to construction and downtime to impact
operations in the fourth quarter as well, president, chief
executive officer and chairman Jack Hockema said in a
statement. The company expects long-term benefits from such
capital spending to offset the short-term pain, Hockema said,
noting that increased heat-treat plate capacity at Trentwood is
needed to address production bottlenecks.
adversity in the third quarter of 2013, we continue to be very
optimistic regarding the longer-term outlook for our business,"
Hockema said. But seasonal demand weakness and maintenance
expenses will likely offset any improvements in performance in
the fourth quarter, he warned.
On the automotive
front, Hockema said Kaiser has seen a "step-change" increase in
value-added revenue from automotive extrusions. The development
"represents the beginning of a new phase of growth for our
company," Hockema said.
Kaiser has invested more than $400 million in capital
projects since 2006, including $80 million in 2013. Besides
boosting automotive extrusion capabilities, the company has
allotted $45 million to increase heat-treat plate capacity at
the Trentwood facility by roughly 10 percent. A $35-million
casting unit in Trentwood is slated for completion next year
amm.com, Aug. 19).