Century Aluminum (CENX) 8-K Century Reports 2007 Financial Results

Exhibit 99.1

Century Reports 2007 Financial Results

MONTEREY, CA. Feb. 14, 2008 -- Century Aluminum Company (NASDAQ: CENX) today reported a net loss of $112.3 million ($2.74 per basic and diluted share) for the fourth quarter of 2007.  Reported fourth quarter results were impacted by a net after-tax charge of $147.7 million ($3.61 per basic share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting.  Quarterly results were impacted by a tax benefit of $4.0 million ($0.10 per basic share) related to the increase in the carrying amount of deferred tax assets as a result of a state tax law change.  The dilutive effect of the convertible notes, options and service-based awards would reduce basic EPS by $0.05 per share.

For the fourth quarter of 2006, the company reported a net loss of $119.1 million ($3.67 per basic and diluted share).  Reported results for this quarter were impacted by an after-tax charge of $174.3 million ($5.37 per basic share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting and by a gain on a sale of surplus land.  The dilutive effect of the options, convertible notes and service-based awards would reduce basic EPS by $0.06 per share.

Recent highlights include:

·   2007 financial results were strong.  Free cash flow(a) increased 55 percent over 2006.  Shipment volumes were 13 percent higher and realized prices increased 2 percent.

·   The 40,000 tonne expansion of the Grundartangi, Iceland plant was completed in November, on schedule and on budget. This latest development was the culmination of a three-year program which increased the smelter’s capacity from 90,000 to 260,000 tonnes per year.

·   Significant progress was made on the greenfield smelter project near Helguvik, Iceland, including the receipt of a positive opinion by the National Planning Agency.  Development plans for the project are well advanced.

·   Hawesville’s proposed new long-term power contract was filed with the Kentucky Public Service Commission. The contract would provide the smelter with cost based power through 2023.  The parties involved expect the transaction to close during the second quarter of 2008.

·   All primary aluminum facilities operated safely at or above capacity.

 (a) A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Schedule I of this press release.

For 2007, Century reported a net loss of $101.2 million ($2.72 per basic and diluted share). Included in these results is a net after-tax charge of $328.3 million ($8.83 per basic and diluted share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting. Full year results were impacted by a tax benefit of $8.3 million ($0.22 per basic share) related to the increase in the carrying amount of deferred tax assets as a result of a state tax law change.  The dilutive effect of the convertible notes, options and service-based awards would reduce basic EPS by $0.37 per share.

For 2006, Century reported a net loss of $41.0 million ($1.26 per basic and diluted share).  Results for 2006 include a net after-tax charge of $241.7 million ($7.46 per basic share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting and by a gain on the sale of surplus land.  The dilutive effect of the convertible notes, options and service-based awards would reduce basic EPS by $0.17 per share.

Sales for the fourth quarter of 2007 were $432.1 million compared with $424.4 million for the fourth quarter of 2006. Shipments of primary aluminum for the 2007 fourth quarter were 198,138 tonnes, compared with 181,675 tonnes shipped in the year-ago quarter. Cash used to settle forward contracts that do not qualify for cash flow hedge accounting was $20.0 million in the fourth quarter of 2007 compared to $12.3 million in the fourth quarter of 2006.

Sales for 2007 were $1.8 billion compared with $1.6 billion for 2006, and total 2007 primary aluminum shipments of 766,951 tonnes compared with 679,939 tonnes shipped in 2006. Cash used to settle forward contracts that do not qualify for cash flow hedge accounting was $98.3 million in 2007 compared to $54.2 million in 2006.

“Century made good progress in 2007 toward its strategic objectives of lowering unit production costs, increasing global diversification and addressing our long-term cost structure,” said president and chief executive officer Logan W. Kruger.  “Our financial results were strong and included record shipments and cash flow.

“During the fourth quarter, we completed the latest expansion of Nordural’s smelter at Grundartangi, Iceland.  The entire three-year project, which almost tripled the size of the plant, was implemented on time and on budget.  The smelter is now producing at its 260,000 tonne per year capacity, and is operating well.  We are proud of the team which delivered this impressive result, while simultaneously operating the plant in an efficient and safe manner.

“At our greenfield smelter project near Helguvik, Iceland, we made important progress.  We signed agreements with two geothermal power providers and with the national power transmission company.  We received a favorable opinion from the National Planning Agency on our environmental impact assessment.  We raised the equity financing for the plant’s first two phases and became the first U.S. company to list on the Iceland stock exchange.  Lastly, we have assembled an experienced project team; they are now completing the final steps required for the commencement of construction.

“We see 2008 as another year of opportunity for Century,” Mr. Kruger concluded.  “We will begin the major construction phase of our new plant in Iceland.  We will also commence a modest two year capital improvement program for our U.S. plants. These activities are taking place in an industry environment that we would characterize as favorable over the medium and longer-term.”

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

Certified Advisors for the First North market of the OMX Nordic Exchange Iceland hf. for Global Depositary Receipts in Iceland:

Astridur Thordardottir, Senior Manager-Corporate Finance, Landsbanki Islands hf.

Olafur Finsen, Senior Legal Advisor-Corporate Finance, Landsbanki Islands hf.

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 December 31,						Year ended December 31,
	2007			2006			2007			2006
NET SALES:
Third-party customers	$	337,678		$	332,282		$	1,449,750		$	1,299,035
Related parties		94,452			92,085			348,413			259,531
		432,130			424,367			1,798,163			1,558,566
COST OF GOODS SOLD		372,207			331,291			1,434,700			1,210,044
GROSS PROFIT		59,923			93,076			363,463			348,522
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		19,136			10,724			59,920			39,363
OPERATING INCOME		40,787			82,352			303,543			309,159
INTEREST EXPENSE – Net		(2,983	)		(10,272	)		(22,109	)		(35,297	)
NET LOSS ON FORWARD CONTRACTS		(228,978	)		(282,891	)		(508,875	)		(389,839	)
OTHER INCOME (EXPENSE) - Net		124			7,019			(3,302	)		6,898
LOSS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURES		(191,050	)		(203,792	)		(230,743	)		(109,079	)
INCOME TAX BENEFIT		74,453			79,716			113,849			52,041
LOSS BEFORE EQUITY IN EARNINGS OF JOINT VENTURES		(116,597	)		(124,076	)		(116,894	)		(57,038	)
EQUITY IN EARNINGS OF JOINT VENTURES		4,294			4,953			15,645			16,083
NET LOSS	$	(112,303	)	$	(119,123	)	$	(101,249	)	$	(40,955	)
EARNINGS PER COMMON SHARE
Basic – Net Loss	$	(2.74	)	$	(3.67	)	$	(2.72	)	$	(1.26	)
Diluted – Net Loss	$	(2.74	)	$	(3.67	)	$	(2.72	)	$	(1.26	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic		40,973			32,457			37,199			32,395
Diluted		40,973			32,457			37,199			32,395

Century Aluminum Company

Consolidated Balance Sheets

(Dollars in Thousands)

(Unaudited)

	December 31, 2007			December 31, 2006
ASSETS
Current Assets:
Cash	$	60,962		$	96,365
Restricted cash		873			2,011
Short term investments		280,169			-
Accounts receivable – net		93,451			113,371
Due from affiliates		26,693			37,542
Inventories		175,101			145,410
Prepaid and other current assets		40,091			19,830
Deferred taxes - current portion		69,858			103,110
Total current assets		747,198			517,639
Property, plant and equipment – net		1,260,040			1,218,777
Intangible asset - net		47,603			61,594
Goodwill		94,844			94,844
Deferred taxes - less current portion		321,068			203,451
Other assets		107,518			88,929
Total	$	2,578,271		$	2,185,234
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable, trade	$	79,482		$	64,849
Due to affiliates		216,754			282,282
Accrued and other current liabilities		60,482			75,143
Long term debt - current portion		-			30,105
Accrued employee benefits costs - current portion		11,997			11,083
Convertible senior notes		175,000			175,000
Industrial revenue bonds		7,815			7,815
Total current liabilities		551,530			646,277
Senior unsecured notes payable		250,000			250,000
Nordural debt		-			309,331
Accrued pension benefit costs - less current portion		14,427			19,239
Accrued postretirement benefits costs - less current portion		184,853			206,415
Due to affiliates - less current portion		913,683			554,864
Other liabilities		39,643			27,811
Deferred taxes		62,931			41,587
Total noncurrent liabilities		1,465,537			1,409,247
Shareholders’ Equity:
Common stock (one cent par value, 100,000,000 shares authorized; 40,988,058 shares outstanding at December 31, 2007 and 32,457,670 at December 31, 2006)		410			325
Additional paid-in capital		857,787			432,270
Accumulated other comprehensive loss		(51,531	)		(166,572	)
Accumulated deficit		(245,462	)		(136,313	)
Total shareholders’ equity		561,204			129.710
Total	$	2,578,271		$	2,185,234

Century Aluminum Company

Consolidated Statements of Cash Flows

(Dollars in Thousands)

(Unaudited)

	Year ended December 31,
	2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(101,249	)	$	(40,955	)
Adjustments to reconcile net loss to net cash (used in) provided by  operating activities:
Unrealized net loss on forward contracts		411,023			333,081
Depreciation and amortization		78,060			69,220
Deferred income taxes		(135,071	)		(126,342	)
Pension and other post retirement benefits		11,038			14,561
Workers’ compensation		(743	)		987
Stock-based compensation		5,962			5,582
Excess tax benefits from share based compensation		(588	)		(1,394	)
(Gain) loss on disposal of assets		72			(6,851	)
Non-cash loss on early extinguishment of debt		2,461			-
Purchase of short-term trading securities		(721,271	)		-
Sale of short-term trading securities		441,102			-
Undistributed earnings of joint ventures		(15,645	)		(16,083	)
Change in operating assets and liabilities:
Accounts receivable - net		19,920			(30,355	)
Due from affiliates		10,850			(18,904	)
Inventories		(26,080	)		(28,524	)
Prepaid and other current assets		(12,540	)		89
Accounts payable, trade		18,211			9,608
Due to affiliates		13,188			9,701
Accrued and other current liabilities		(13,660	)		18,965
Other - net		9,642			(7,033	)
Net cash (used in) provided by operating activities		(5,318	)		185,353
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment		(24,525	)		(23,602	)
Nordural expansion		(88,764	)		(193,511	)
Proceeds from sale of property, plant and equipment		543			7,759
Restricted cash deposits		3,738			(2,583	)
Net cash used in investing activities		(109,008	)		(211,937	)
CASH FLOWS FROM FINANCIING ACTIVITIES
Borrowings of long-term debt		30,000			109,000
Repayment of long-term debt		(369,436	)		(581	)
Net repayments under revolving credit facility		-			(8,069	)
Excess tax benefits from share based compensation		588			1,394
Issuance of common stock - net of issuance costs		417,771			3,453
Net cash provided by financing activities		78,923			105,197
NET (DECREASE) INCREASE IN CASH		(35,403	)		78,613
CASH, BEGINNING OF YEAR		96,365			17,752
CASH, END OF YEAR	$	60,962		$	96,365

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
4th Quarter		133,002		293,219	$	1.07		65,136		143,600	$	119,635
3rd Quarter		134,495		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
Total		531,561		1,171,889	$	1.13		235,390		518,945	$	472,239
2006
4th Quarter		131,041		288,895	$	1.12		50,634		111,630	$	100,847
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
Total		522,819		1,152,617	$	1.09		157,120		346,390	$	305,139

(1) Does not include Toll shipments from Nordural

FORWARD PRICED SALES - As of December 31, 2007
	2008(1)(2)			2009(2)			2010(2)			2011(2)			2012-2015	(2)
Base Volume
Pounds (000)		246,958			231,485			231,485			165,347		661,386
Metric tons		112,018			105,000			105,000			75,000		300,000
Percent of capacity		14	%		13	%		13	%		9	%	9	%
Potential additional volume (2)
Pounds (000)		220,903			231,485			231,485			165,347		661,386
Metric tons		100,200			105,000			105,000			75,000		300,000
Percent of capacity		12	%		13	%		13	%		9	%	9	%

(1)

The forward priced sales in 2008 exclude January 2008 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 2008 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.

SCHEDULE I

Century Aluminum Company

Reconciliation of Cash Flow from Operations to Free Cash Flow

(Dollars in Thousands)

(Unaudited)

	Year ended December 31,
	2007				2006
Net cash (used in) provided by operating activities		$	(5,318	)		$	185,353
Increase in short-term investments - net			280,169				-
Purchase of property, plant and equipment (1)			(24,525	)			(23,602	)
Free Cash Flow		$	250,326			$	161,751

Footnote:
(1)	Excludes Grundartangi, Iceland expansion

The Company's earnings release includes a discussion of free cash flow, which is not a financial measure based upon generally accepted accounting principles, or GAAP.  The Company defines free cash flow as net cash (used in) provided by operating activities less capital expenditures (other than capital expenditures related to the expansion of the Company's Grundartangi, Iceland facility) and including the net increase in short term investments due to their liquidity.  The Company's calculation of free cash flow may not be comparable to similarly titled measures reported by other companies due to differences in the components used in its calculation.  The Company's earnings release includes a reconciliation of free cash flow to cash flow from operating activities, which is the most directly comparable GAAP financial measure.  Free cash flow should not be considered as a substitute for cash flows from operating activities as determined in accordance with GAAP.

The Company's management believes the presentation of free cash flow is a useful measure that helps investors evaluate the Company's capacity to fund its ongoing cash operating requirements, including capital expenditures and debt service obligations, and to make acquisitions or other investments.