Lower LME Prices Jolt Century Aluminum Company's Q3 Sales

SEATTLE (Scrap Monster): Century Aluminum Company announced results for third quarter of 2019.

The shipments of primary aluminum at 198,543 tonnes in Q3 this year were down by 2% when compared to prior quarter shipment of 203,380 tonnes. The company attributed the drop in shipments to lower than expected production at its Hawesville smelter. The lower LME prices led to drastic decline in net sales, which fell by 7% over the prior quarter to $438 million.

The company reported net loss of $20.7 million or $0.23 per share, flat when matched with the prior quarter. The adjusted net loss more than doubled from $16.2 million in Q2 ’19 to $37.4 million in third quarter 2019. Century Aluminum reported adjusted EBITDA loss of $12.2 million. The cash position of the company stood at $22.5 million at the end of Q3 2019.

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Commenting on the results, Michael Bless, President and Chief Executive Officer noted that the company’s operations continue to remain largely on track. The Hawesville smelter operations will return to full production in 2020. The company’s other operations too are performing well, he said. The company has made notable progress in limiting conversion costs and boosting safety standards, Bless added.

The company reported growth slowdown in several customers’ markets during the third quarter of 2019.