Business
Kaiser Aluminum Corporation Reports First Quarter 2022 Financial Results
First Quarter 2022 Highlights: Net Sales $949 Million; Value Added Revenue $370 MillionNet Income $8 Million; Net Income per Diluted Share $0.51Adjusted Net
About this update from Kaiser Aluminum Corporation
[{"type":"text","content":"First Quarter 2022 Highlights: Net Sales $949 Million; Value Added Revenue $370 MillionNet Income $8 Million; Net Income per Diluted Share $0.51Adjusted Net Income $11 Million; Adjusted Earnings per Diluted Share $0.66Adjusted EBITDA $55 Million; Adjusted EBITDA Margin 14.8%Strong Demand for General Engineering and Packaging; Aerospace Recovery Continues As ExpectedHigher Freight Costs of ~$6 Million Due to Rail and Port Shipping ConstraintsLingering Supply Chain Issues Related to Metal and Magnesium Continue to Impact Results FRANKLIN, Tenn., April 20, 2022 (GLOBE NEWSWIRE) -- Kaiser Aluminum Corporation (NASDAQ:KALU), a leading producer of semi-fabricated specialty aluminum products, serving customers worldwide with highly-engineered solutions for aerospace and high-strength, packaging, general engineering, custom automotive and other industrial applications, today announced first quarter 2022 results. Management Summary First quarter 2022 results reflect continued strength in demand for the Company’s general engineering and packaging applications, and steadily improving demand for its aerospace/high strength applications, while the Company’s automotive business remains muted due to the continued shortage of semiconductor chips that have limited North American vehicle production. Value added revenue increased approximately 17% on a sequential basis as pricing initiatives, including contained metal and commodity surcharges implemented in the latter part of 2021, have largely mitigated the impact of rising metal, freight, energy and other costs to date. However, costs are continuing to increase. In addition, the Company incurred approximately $6 million of incremental freight costs during the quarter due to shipping constraints and transportation disruptions that have now abated. Adjusted EBITDA increased approximately 20% on a sequential basis, reflecting the higher value added revenue and improving efficiencies, although lingering supply chain issues regarding magnesium availability and timely metal supply continued to impact operations at the Company’s Warrick facility during the quarter. “While we continue to navigate through an inflationary cost environment and manage supply chain challenges, we remain confident in the initiatives we are taking to further improve manufacturing efficiencies and operating performance,” said K...