Kaiser Aluminum Corporation Reports Third Quarter And Year-to-Date 2010 Financial Results

• Fabricated Products Adjusted Operating Income:
  • Third Quarter Up 15% Over Prior Year Quarter
  • Year-to-Date Up 25% Over Prior Year Period
• Start-up of Kalamazoo Extrusion Facility Progressing with Product Quality Exceeding Expectations
• Recent Acquisition of Nichols Wire Facility and Pending Acquisition of Alexco Assets Further Strengthen Platform for Growth

FOOTHILL RANCH, Calif., Oct. 25, 2010 (GLOBE NEWSWIRE) --Kaiser Aluminum Corporation (Nasdaq:KALU) today reported net income of $6 million and earnings per diluted share of $0.29 for the third quarter ended September 30, 2010 compared to $23 million and earnings per diluted share of $1.14 for the quarter ended September 30, 2009. Both periods included pre-tax, non-run-rate items, including non-cash mark-to-market gains on derivative positions of approximately $15 million in the third quarter 2010 and $27 million in the third quarter of 2009 and an increase in the environmental accrual of $14 million in the third quarter of 2010. Excluding the impact of pre-tax, non-run-rate items, adjusted net income was $6 million, or $0.32 earnings per diluted share, for the third quarter of 2010 compared to adjusted net income and earnings per diluted share of $6 million and $0.27, respectively, for the prior year quarter.

For the nine months ended September 30, 2010, reported net income was $14 million or $0.74 of earnings per diluted share compared to $46 million or $2.31 million per diluted share in the prior year period. Adjusting for pre-tax, non-run-rate and predominantly non-cash items, earnings per diluted share for the nine months ended September 30, 2010 improved to $1.47 from $1.39 for the prior year period.

Third Quarter Summary Comments

"Consistent with our outlook, market conditions in the third quarter remained similar to the first half of 2010. Third quarter operating results reflected normal seasonal weakness for our general engineering applications and higher costs associated with planned major maintenance projects. Our quarterly results were further impacted by short-term manufacturing inefficiencies brought on by lower volume, production delays and continued ramp-up of the new Kalamazoo extrusion facility," said Jack A. Hockema, President, CEO and Chairman. "On a comparative basis, adjusted operating income for our Fabricated Products business increased 15% from the prior year quarter and 25% year-to-date. The increase reflects higher demand levels and improvements in manufacturing cost efficiencies across our platform."