Kaiser Aluminum (KALU) Tops Q2 EPS by 5c, Revenues Beat
Kaiser Aluminum (NASDAQ: KALU) reported Q2 EPS of $1.68, $0.05 better than the analyst estimate of $1.63. Revenue for the quarter came in at $415 million versus the consensus estimate of $397.71 million.
Second Quarter 2018 Highlights:
- Net Sales $415 Million; Value Added Revenue $210 Million
- Net Income $21 Million; Adjusted EBITDA $55 Million; Adjusted EBITDA Margin 26.0%
- Moderating Aerospace Destocking; Continued Strong Automotive and General Engineering Demand
- Record Shipments Driven By Strong Demand and Recent Capital Investments
- Higher Year-Over-Year Metal and Freight Costs Continued to Compress Margins
- Price Increases Implemented to Address Rising Metal and Freight Costs
Second Quarter and First Half 2018 Summary
“Solid second quarter 2018 results were driven by strong demand and record shipments. In addition, aggressive price increases implemented in April and May began to offset the severe margin compression from high metal and freight costs. The continued benefit from favorable spreads on scrap raw material purchases further cushioned the impact of rising costs on adjusted EBITDA margin,” said Jack A. Hockema, Chairman and Chief Executive Officer.
“Record shipments in the second quarter 2018 reflected continued demand growth for our general engineering applications, continued growth in automotive extrusion content, improving demand for commercial aerospace applications as supply chain destocking moderates, and the benefits of increased capacity from recent investments.
“During the quarter the Trentwood modernization project continued with the implementation of practice changes for new processes and installation of handling equipment at the light gauge furnace. While we experienced inefficiencies in the second quarter related to this work, we are realizing underlying manufacturing efficiency and capacity benefits from the investments and we expect continuing improvement as we finalize the project work,” stated Mr. Hockema.
For earnings history and earnings-related data on Kaiser Aluminum (KALU) click here.