Kaiser Aluminum Corp. (KALU, Financial) filed Quarterly Report for the period ended 2012-06-30.
Kaiser Aluminum Corp. has a market cap of $995.4 million; its shares were traded at around $49.54 with a P/E ratio of 18 and P/S ratio of 0.8. The dividend yield of Kaiser Aluminum Corp. stocks is 1.9%.
Net Sales. We reported Net sales for the quarter ended June 30, 2012 of $345.2 million compared to $338.8 million for the quarter ended June 30, 2011. Net sales for the six months ended June 30, 2012 were $710.6 million compared to $661.4 million for the six months ended June 30, 2011. As more fully discussed below, the increase in Net sales during both the quarter and six months ended June 30, 2012 were due to both an increase in average realized price per pound and an increase in Fabricated Products segment shipments. The average realized price per pound for the Fabricated Products segment increased for both the quarter and six months ended June 30, 2012 as compared to the prior year periods as a result of higher average value-added revenue per pound despite lower underlying metal prices. Fluctuation in underlying primary aluminum market prices does not necessarily directly impact profitability because (i) a substantial portion of the business conducted by the Fabricated Products segment passes primary aluminum price changes directly onto customers and (ii) our hedging activities in support of the
Cost of Products Sold Excluding Depreciation, Amortization and Other Items. Cost of products sold, excluding depreciation, amortization and other items in the quarter ended June 30, 2012 totaled $284.5 million, or 82% of Net sales, compared to $300.0 million, or 89% of Net sales, in the quarter ended June 30, 2011. Cost of products sold, excluding depreciation, amortization and other items in the six months ended June 30, 2012 totaled $579.5 million, or 82% of Net sales, compared to $580.9 million, or 88% of Net sales, in the quarter ended June 30, 2011. Included in Cost of products sold, excluding depreciation, amortization and other items were $0.1 million and $9.5 million of unrealized mark-to-market losses on our derivative positions in the quarters ended June 30, 2012 and June 30, 2011, respectively. Unrealized mark-to-market gains (losses) on derivative positions were $3.0 million and $(5.2) million in the six months ended June 30, 2012 and June 30, 2011, respectively. See “Segment and Business Unit Information” below for a detailed discussion of the comparative results of operations for the periods ended June 30, 2012 and June 30, 2011.
For the quarter ended June 30, 2012, Net sales of fabricated products increased by 2% to $345.2 million, as compared to the quarter ended June 30, 2011, due primarily to a 1% increase in shipments and a slight increase in average realized sales price.
For the six months ended June 30, 2012, Net sales of fabricated products increased by 7% to $710.6 million, as compared to the six months ended June 30, 2011, due primarily to a 2% increase in average realized sales price and a 5% increase in shipments. The increase in shipments was comprised of (i) a 24% increase in Aero/HS products shipments primarily due to higher commercial aerospace demand for plate and sheet products, (ii) a 3% increase in Automotive Extrusion shipments as we saw new aluminum automotive extrusion programs using our products ramp up as well as an increase in existing programs due to the increase in North American automotive build rates and (iii) a 1% increase in GE products shipments reflecting a static industrial economy, offset by a 21% decrease in shipments of Other products primarily to focus on higher value-added products. Average realized third-party sales price increased, reflecting higher value added revenue per pound, offset by lower underlying hedged, alloyed metal prices passed through to customers. Higher value-added revenue per pound reflected a greater percentage of Aero/HS products sold in the six months ended June 30, 2012 as well as higher value added pricing for certain products.
Read the The complete Report
Kaiser Aluminum Corp. has a market cap of $995.4 million; its shares were traded at around $49.54 with a P/E ratio of 18 and P/S ratio of 0.8. The dividend yield of Kaiser Aluminum Corp. stocks is 1.9%.
Highlight of Business Operations:
A fundamental part of our business model is to mitigate the impact of aluminum price volatility on our cash flow. We manage the risk of fluctuations in the price of primary aluminum through either (i) pricing policies that allow us to pass the underlying cost of metal onto customers, or (ii) hedging by purchasing financial derivatives to shield us from exposure related to firm-price sales contracts that specify the underlying metal price plus a conversion price. While we can generally pass metal price movement onto customers, for some of our higher value-added products sold on a spot basis, our ability to change prices can lag, sometimes by as much as several months, with a favorable impact on our results when metal prices decline and an adverse impact on our results when metal prices increase. The average London Metal Exchange (“LME”) transaction prices per pound of primary aluminum for the six months ended June 30, 2012 and June 30, 2011 were $0.94 and $1.16, respectively. The average LME transaction prices per pound of primary aluminum for the quarters ended June 30, 2012 and June 30, 2011 were $0.90 and $1.18, respectively. At July 20, 2012, the LME transaction price per pound was $0.86.Net Sales. We reported Net sales for the quarter ended June 30, 2012 of $345.2 million compared to $338.8 million for the quarter ended June 30, 2011. Net sales for the six months ended June 30, 2012 were $710.6 million compared to $661.4 million for the six months ended June 30, 2011. As more fully discussed below, the increase in Net sales during both the quarter and six months ended June 30, 2012 were due to both an increase in average realized price per pound and an increase in Fabricated Products segment shipments. The average realized price per pound for the Fabricated Products segment increased for both the quarter and six months ended June 30, 2012 as compared to the prior year periods as a result of higher average value-added revenue per pound despite lower underlying metal prices. Fluctuation in underlying primary aluminum market prices does not necessarily directly impact profitability because (i) a substantial portion of the business conducted by the Fabricated Products segment passes primary aluminum price changes directly onto customers and (ii) our hedging activities in support of the
Cost of Products Sold Excluding Depreciation, Amortization and Other Items. Cost of products sold, excluding depreciation, amortization and other items in the quarter ended June 30, 2012 totaled $284.5 million, or 82% of Net sales, compared to $300.0 million, or 89% of Net sales, in the quarter ended June 30, 2011. Cost of products sold, excluding depreciation, amortization and other items in the six months ended June 30, 2012 totaled $579.5 million, or 82% of Net sales, compared to $580.9 million, or 88% of Net sales, in the quarter ended June 30, 2011. Included in Cost of products sold, excluding depreciation, amortization and other items were $0.1 million and $9.5 million of unrealized mark-to-market losses on our derivative positions in the quarters ended June 30, 2012 and June 30, 2011, respectively. Unrealized mark-to-market gains (losses) on derivative positions were $3.0 million and $(5.2) million in the six months ended June 30, 2012 and June 30, 2011, respectively. See “Segment and Business Unit Information” below for a detailed discussion of the comparative results of operations for the periods ended June 30, 2012 and June 30, 2011.
For the quarter ended June 30, 2012, Net sales of fabricated products increased by 2% to $345.2 million, as compared to the quarter ended June 30, 2011, due primarily to a 1% increase in shipments and a slight increase in average realized sales price.
For the six months ended June 30, 2012, Net sales of fabricated products increased by 7% to $710.6 million, as compared to the six months ended June 30, 2011, due primarily to a 2% increase in average realized sales price and a 5% increase in shipments. The increase in shipments was comprised of (i) a 24% increase in Aero/HS products shipments primarily due to higher commercial aerospace demand for plate and sheet products, (ii) a 3% increase in Automotive Extrusion shipments as we saw new aluminum automotive extrusion programs using our products ramp up as well as an increase in existing programs due to the increase in North American automotive build rates and (iii) a 1% increase in GE products shipments reflecting a static industrial economy, offset by a 21% decrease in shipments of Other products primarily to focus on higher value-added products. Average realized third-party sales price increased, reflecting higher value added revenue per pound, offset by lower underlying hedged, alloyed metal prices passed through to customers. Higher value-added revenue per pound reflected a greater percentage of Aero/HS products sold in the six months ended June 30, 2012 as well as higher value added pricing for certain products.
Read the The complete Report
