| Century Aluminum Posts Wider-than-Expected Loss in Q3 | |
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Century Aluminum Co. CENX recorded a net loss of $56.1 million (or 65 cents per share) in third-quarter 2015 compared to net income of $50.4 million (or 52 cents per share) in the same quarter last year. The bottom line was adversely affected by inventory adjustments, charges associated with the closure at Ravenswood, labor disruption and the curtailment of one potline at its Hawesville smelter, and cost-reduction charges.
Barring one-time items, Century recorded a loss of 48 cents per share in third-quarter 2015, significantly wider than the Zacks Consensus Estimate of a loss of 26 cents. Century Aluminum Company (CENX) - Earnings Surprise | FindTheCompany The company logged revenues of $454.5 million in the reported quarter, down around 9% year over year. However, the figure surpassed the Zacks Consensus Estimate of $451 million. Total shipments of primary aluminum in the quarter were 231,040 tons compared with 218,214 tons shipped in the year-ago quarter.
Shares of Century fell around 15.6% to close at $3.62 on Oct 30.
Financials
Century ended the quarter with cash and cash equivalents of around $123 million, down roughly 7.8% year over year. Net cash used for operating activities in the reported quarter were $31.9 million versus net cash provided by operating activities of $89.1 million in the prior-year quarter.
Market Sentiment
According to Michael Bless, President and CEO of Century, market sentiment about a wide range of commodities has weakened over the past few months. However, management foresees healthy demand in its primary aluminum sector in most developed markets. Owing to a shortage of new capacity projects, the company continues to anticipate a near-term western world supply deficit, excluding China. Unfair subsidization of additional capacity expansion by the Chinese government has caused severe damage to global markets.
The company stated that it has been working closely with the industry as well as the U.S. government to address the above issue. However, Century strives to structure its operations for greater yield amid the unfavorable market situation. The company has decided to operate Hawesville at 40% of its rated capacity to maintain a balance between its cost structure and production capacities. This strategy will help the company remain stable in the current price environment.
Century has issued WARN notices to the employees of its Mt. Holly plant in South Carolina. The company has signed a market-based agreement with a high quality supplier to generate and deliver Mt. Holly's full power load to the local utility's border. Century has been unable to reach an agreement with the local utility, but will attempt to do so within the next two months.
Zacks Rank
Century Aluminum currently carries a Zacks Rank #4 (Sell).
Better-ranked companies in the metal process and fabrication sector include NSK Ltd. NPSKY, Norsk Hydro ASA NHYDY and Worthington Industries, Inc. WOR. While NSK Ltd sports a Zacks Rank #1 (Strong Buy), both Norsk Hydro and Worthington carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WORTHINGTON IND (WOR): Free Stock Analysis Report CENTURY ALUM CO (CENX): Free Stock Analysis Report NSK LTD -UN ADR (NPSKY): Free Stock Analysis Report NORSK HYDRO ADR (NHYDY): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Century Aluminum is a producing company based in United states of america. Century Aluminum is listed in United States of America. Its market capitalisation is US$ 1.5 billions as of today (€ 1.4 billions). Its stock quote reached its lowest recent point on March 06, 2009 at US$ 1.06, and its highest recent level on October 14, 2024 at US$ 17.41. Century Aluminum has 87 260 000 shares outstanding. |