Century Aluminum (CENX) 8-K Century Aluminum Reports Third Quarter 2007 Earnings

Exhibit 99.1

Century Aluminum Reports Third Quarter 2007 Earnings

MONTEREY, CA. Oct. 25, 2007 -- Century Aluminum Company (NASDAQ:CENX) reported net income of $7.5 million ($0.18 per basic share and $0.17 per diluted share) for the third quarter of 2007. Reported third quarter results include an after-tax charge of $46.2 million ($1.13 per basic share and $1.06 per diluted share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting.

In the third quarter of 2006, the company reported net income of $173.9 million ($5.36 per basic share and $5.26 per diluted share), which included an after-tax gain of $134.6 million ($4.15 per basic share and $4.06 per diluted share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting.

Third quarter 2007 highlights included:

·   The 40,000 tonne expansion of the Grundartangi, Iceland smelter remains on schedule and budget for a fourth quarter, 2007 completion. At the end of the third quarter, approximately two-thirds of the expansion capacity was operational.  Grundartangi produced at an annual rate of 242,000 tonnes during the quarter.

·   Nordural received a positive opinion from the Icelandic Planning Agency on the Environmental Impact Assessment for the company’s proposed greenfield smelter to be constructed near Helguvik, Iceland.  The project remains on schedule.

·   All primary aluminum facilities operated at or above capacity.

·   Cash flow remained strong.  Cash flow from operations for the first nine months of 2007 was a use of cash of $41 million; included in this result was a use of cash of $259 million due to an increase in short-term investments.  Cash flow from operations for the first nine months of 2006 was $118 million.

Sales in the third quarter of 2007 were $454.4 million, compared with $381.3 million in the third quarter of 2006.  Shipments of primary aluminum for the quarter totaled 195,540 tonnes compared with 169,598 tonnes in the third quarter of 2006. The increase reflects additional volume from the continuing expansion at Grundartangi and the temporary shutdown of one potline at the Ravenswood, West Virginia smelter in 2006, which resulted in lost production of approximately 8,000 tonnes in the year-ago quarter.

Net income for the first nine months of 2007 was $11.1 million ($0.31 per basic and $0.29 per diluted share), which includes an after-tax charge of $172.1 million ($4.79 per basic share and $4.50 per diluted share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting.  Net income for the first nine months of 2006 was $78.2 million ($2.41 per basic share and $2.38 per diluted share) which included an after tax charge of $68.4 million ($2.11 per basic share and $2.04 per diluted share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting.

Sales in the first nine months of 2007 were $1,366.0 million compared with $1,134.2 million in the same period of 2006. Shipments of primary aluminum for the first nine months of 2007 were 568,812 tonnes compared with 498,264 tonnes for the comparable 2006 period.

"Century achieved solid performance during the third quarter,” said president and chief executive officer Logan W. Kruger.  “Our plants produced above capacity and operating costs were within expectations, despite continuing upward pressure on U.S. power costs.  We made significant progress on our growth projects in Iceland and elsewhere.  We expect to complete the latest 40,000 tonne expansion of the Grundartangi facility later this year, on schedule and on budget.  The positive opinion by the Icelandic Planning Agency on the Environmental Impact Assessment for our proposed greenfield smelter at Helguvik is a significant milestone and we plan to begin preparing the site for construction by early next year.”

Century Aluminum Company owns primary aluminum capacity in the United States and Iceland, as well as an ownership interest in alumina and bauxite assets in the United States and Jamaica. Century's corporate offices are located in Monterey, California.

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Century Aluminum’s quarterly conference call is scheduled for 5:00 p.m. Eastern time today. To listen to the conference call and to view related presentation materials, go to www.centuryaluminum.com and click on the conference call link on the homepage.

Contacts:

Mike Dildine (media)               831-642-9364

Shelly Lair (investors)             831-642-9357

Cautionary Statement

This press release may contain "forward-looking statements" within the meaning of U.S. federal securities laws. The company has based its forward-looking statements on current expectations and projections about the future; however, these statements are subject to risks, uncertainties and assumptions, any of which could cause the company's actual results to differ materially from those expressed in its forward-looking statements. More information about these risks, uncertainties and assumptions can be found in the risk factors and forward-looking statements cautionary language contained in the company's Annual Report on Form 10-K and in other filings made with the Securities and Exchange Commission. The company does not undertake, and specifically disclaims, any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date such forward-looking statements are made.

Century Aluminum Company

Consolidated Statements of Operations

(in Thousands, Except Per Share Amounts)

(Unaudited)

	Three months ended September 30,						Nine months ended September 30,
	2007			2006			2007				2006
NET SALES:
Third-party customers	$	360,336		$	312,038		$	1,112,072			$	966,753
Related parties		94,035			69,239			253,961				167,446
		454,371			381,277			1,366,033				1,134,199
COST OF GOODS SOLD		369,875			310,303			1,062,493				878,753
GROSS PROFIT		84,496			70,974			303,540				255,446
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		13,372			8,144			40,784				28,639
OPERATING INCOME		71,124			62,830			262,756				226,807
INTEREST EXPENSE – Net		(2,657	)		(9,823	)		(19,126	)			(25,025	)
NET LOSS ON FORWARD CONTRACTS		(75,041	)		210,268			(279,897	)			(106,948	)
OTHER INCOME (EXPENSE) - Net		(131	)		3			(3,426	)			(121	)
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURES		(6,705	)		263,278			(39,693	)			94,713
INCOME TAX (EXPENSE) BENEFIT		10,438			(92,922	)		39,396				(27,675	)
INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF JOINT VENTURES		3,733			170,356			(297	)			67,038
EQUITY IN EARNINGS OF JOINT VENTURES		3,737			3,583			11,351				11,130
NET INCOME	$	7,470		$	173,939		$	11,054			$	78,168
EARNINGS PER COMMON SHARE
Basic – Net Income	$	0.18		$	5.36		$	0.31			$	2.41
Diluted – Net Income	$	0.17		$	5.26		$	0.29			$	2.38
										��
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic		40,957			32,438			35,927				32,374
Diluted		43,459			33,148			38,246				33,515

Century Aluminum Company

Consolidated Balance Sheets

(Dollars in Thousands)

(Unaudited)

	September 30, 2007			December 31, 2006
ASSETS
Current Assets:
Cash	$	64,776		$	96,365
Restricted cash		867			2,011
Short term investments		258,727			-
Accounts receivable – net		100,127			113,371
Due from affiliates		27,693			37,542
Inventories		166,400			145,410
Prepaid and other current assets		20,194			19,830
Deferred taxes – current portion		116,042			103,110
Total current assets		754,826			517,639
Property, plant and equipment – net		1,259,776			1,218,777
Intangible asset – net		51,101			61,594
Goodwill		94,844			94,844
Other assets		323,824			292,380
Total	$	2,484,371		$	2,185,234
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable, trade	$	72,859		$	64,849
Due to affiliates		225,960			282,282
Accrued and other current liabilities		44,250			75,143
Long term debt – current portion		-			30,105
Accrued employee benefits costs – current portion		11,083			11,083
Convertible senior notes		175,000			175,000
Industrial revenue bonds		7,815			7,815
Total current liabilities		536,967			646,277
Senior unsecured notes payable		250,000			250,000
Nordural debt		20,000			309,331
Accrued pension benefit costs – less current portion		15,987			19,239
Accrued postretirement benefits costs – less current portion		209,092			206,415
Due to affiliates – less current portion		716,636			554,864
Other liabilities		40,686			27,811
Deferred taxes		59,860			41,587
Total noncurrent liabilities		1,312,261			1,409,247
Shareholders’ Equity:
Common stock (one cent par value, 100,000,000 shares authorized; 40,958,071 shares outstanding at September 30, 2007 and 32,457,670 at December 31, 2006)		410			325
Additional paid-in capital		854,545			432,270
Accumulated other comprehensive loss		(86,653	)		(166,572	)
Accumulated deficit		(133,159	)		(136,313	)
Total shareholders’ equity		635,143			129,710
Total	$	2,484,371		$	2,185,234

Century Aluminum Company

Consolidated Statements of Cash Flows

(Dollars in Thousands)

(Unaudited)

	Nine Months ended September 30,
	2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	11,054		$	78,168
Adjustments to reconcile net income to net cash  (used in) provided by operating activities:
Unrealized net loss on forward contracts		201,999			62,766
Depreciation and amortization		57,735			50,090
Deferred income taxes		(38,822	)		(26,224	)
Pension and other post retirement benefits		6,499			11,005
Stock-based compensation		3,765			4,603
Excess tax benefits from share based compensation		(516	)		(1,244	)
(Gain) loss on disposal of assets		(49	)		43
Non-cash loss on early extinguishment of debt		2,461			-
Increase in short-term investments – net		(258,727	)		-
Undistributed earnings of joint ventures		(11,351	)		(11,130	)
Change in operating assets and liabilities:
Accounts receivable – net		13,244			628
Due from affiliates		9,849			(9,562	)
Inventories		(20,989	)		(29,084	)
Prepaid and other current assets		(1,988	)		(4,564	)
Accounts payable, trade		11,849			(784	)
Due to affiliates		12,018			3,129
Accrued and other current liabilities		(52,289	)		(6,381	)
Other – net		13,518			(3,949	)
Net cash (used in) provided by operating activities		(40,740	)		117,510
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(13,693	)		(10,610	)
Nordural expansion		(79,560	)		(155,756	)
Proceeds from sale of property, plant and equipment		543			22
Restricted cash deposits		3,744			(3,998	)
Net cash used in investing activities		(88,966	)		(170,342	)
CASH FLOWS FROM FINANCIING ACTIVITIES
Borrowings of long-term debt		30,000			89,000
Repayment of long-term debt		(349,436	)		(434	)
Net repayments under revolving credit facility		-			(8,069	)
Excess tax benefits from share based compensation		516			1,244
Issuance of common stock		417,037			3,433
Net cash provided by financing activities		98,117			85,174
NET (DECREASE) INCREASE IN CASH		(31,589	)		32,342
CASH, BEGINNING OF PERIOD		96,365			17,752
CASH, END OF PERIOD	$	64,776		$	50,094

Century Aluminum Company

Selected Operating Data

(Unaudited)

SHIPMENTS - PRIMARY ALUMINUM
	Direct (1)						Toll
	Metric Tons		(000) Pounds		$/Pound		Metric Tons		(000) Pounds		(000) Revenue
2007
3rd Quarter		134,494		296,509	$	1.13		61,046		134,583	$	120,554
2nd Quarter		132,496		292,104	$	1.19		56,154		123,798	$	117,667
1st Quarter		131,568		290,057	$	1.15		53,054		116,964	$	114,383
2006
3rd Quarter		126,810		279,568	$	1.07		42.788		94,331	$	81,424
2nd Quarter		132,590		292,311	$	1.12		39,125		86,255	$	77,702
1st Quarter		132,378		291,843	$	1.03		24,573		54,174	$	45,166

(1) Does not include Toll shipments from Nordural

FORWARD PRICED SALES - As of September 30, 2007
	2007(1)(2)			2008 (2)			2009 (2)			2010 (2)			2011-2015	(2)
Base Volume:
Pounds (000)		92,843			241,745			231,485			231,485		826,733
Metric tons		42,113			109,654			105,000			105,000		375,000
Percent of capacity		21	%		14	%		13	%		13	%	9	%
Potential additional volume (2):
Pounds (000)		27,778			220,903			231,485			231,485		826,733
Metric tons		12,600			100,200			105,000			105,000		375,000
Percent of capacity		6	%		12	%		13	%		13	%	9	%

(1)

The forward priced sales in 2007 exclude October 2007 shipments to customers that are priced based upon the prior month’s market price.

(2)

Certain financial contracts included in the forward priced sales base volume for the period 2007 through 2015 contain clauses that trigger potential additional sales volume when the market price for a contract month is above the base contract ceiling price.  These contacts will be settled monthly and, if the market price exceeds the ceiling price for all contract months through 2015, the potential sales volume would be equivalent to the amounts shown above.