Kaiser Aluminum (NASDAQ: KALU) reported Q2 EPS of $1.43, $0.05 better than the analyst estimate of $1.38. Revenue for the quarter came in at $335 million versus the consensus estimate of $351.72 million.

2016 Outlook

“As we look to the second half 2016, we anticipate normal seasonal demand weakness, and for general engineering plate, import pressure is expected to negatively impact sales prices and margins. In addition, we have significant major maintenance expense planned for the third quarter which we anticipate to be approximately $5-$6 million higher than the first half 2016 run-rate,” said Mr. Hockema.

“For the full year, we are modifying our value added revenue outlook for aerospace and high strength applications to reflect slightly higher than 5% year-over-year growth based upon stronger than anticipated demand for our aerospace and high strength applications. In addition, we are reducing our outlook for year-over-year value added revenue growth in automotive extrusions from 10% to approximately 6% as one program terminated sooner than anticipated and another program is ramping up at a slower than expected pace. The revision to our 2016 outlook for automotive extrusions does not change our longer-term outlook for continued demand growth in aluminum extrusion content in vehicles for our served market segments.

“Overall, our full year outlook remains unchanged. We reiterate our outlook for value added revenue growth of 3%-5% year-over-year with improvement in adjusted EBITDA and EBITDA margin driven by sales growth and continued improvement in manufacturing efficiencies,” concluded Mr. Hockema.

For earnings history and earnings-related data on Kaiser Aluminum (KALU) click here.