Century Aluminum (CENX) 8-K Century Aluminum Reports Second Quarter 2008 Results

Exhibit 99.1

Century Aluminum Reports Second Quarter 2008 Results

MONTEREY, CA. July 24, 2008 -- Century Aluminum Company (NASDAQ:CENX) reported a net loss of $2.3 million ($0.06 per basic and diluted share) for the second quarter of 2008. Reported second quarter results were negatively impacted by an after-tax charge of $129.9 million ($3.16 per basic share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting. Quarterly results were positively impacted by a $15.5 million tax benefit ($0.38 per basic share) resulting principally from a reduction in non-U.S. corporate tax rates. The dilutive effect of the convertible notes, options and service-based awards would reduce basic EPS by $0.21. Cash used to settle forward contracts that do not qualify for cash flow hedge accounting was $62.8 million.

In the second quarter of 2007, the company reported a net loss of $60.7 million ($1.77 per basic and diluted share), which included an after-tax charge of $125.1 million ($3.66 per basic share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting and a non-cash after-tax charge of $2.0 million ($0.06 per basic share) for the early extinguishment of debt. Quarterly results were positively impacted by a tax benefit of $4.3 million ($0.13 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 $0.13. Cash used to settle forward contracts that do not qualify for cash flow hedge accounting was $27.8 million.

Recent highlights included:

·   Net sales of $545 million increased 16 percent from record levels set in the first quarter of 2008.

·   Construction continued at the company’s greenfield smelter project at Helguvik, Iceland, where first metal production is expected by year-end 2010.  A groundbreaking ceremony in June celebrated the commencement of major construction activity.

·   After a successful conceptual study, Century and Minmetals have commissioned a full feasibility study for a bauxite and alumina joint venture project in Jamaica. The study is scheduled to be completed by the end of 2009.

·   In early July, Century settled all of its remaining fixed price forward aluminum financial sales contracts. The transaction was partially financed with a public stock offering of 7,475,000 shares of common stock (including an over-allotment option of 975,000 shares) at $62.25 per share.

Sales in the second quarter of 2008 were $545.2 million, compared with $464.0 million in the second quarter of 2007.  Shipments of primary aluminum for the quarter totaled 198,172 tonnes compared with 188,650 tonnes in the year-ago quarter, reflecting the impact of the Grundartangi expansion to 260,000 tonnes, which was completed in the fourth quarter of 2007.

For the first half of 2008 the company reported a net loss of $235.1 million ($5.72 per basic and diluted share), which includes an after-tax charge of $415.8 million ($10.12 per basic share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting.  The dilutive effect of the convertible notes, options and performance shares would reduce basic EPS for the first half of 2008 by $0.30 per share. Cash used to settle forward contracts that do not qualify for cash flow hedge accounting was $115.0 million. This result compares with net income of $3.6 million ($0.11 per basic and $0.10 per diluted share) in the year-ago period, which included an after-tax charge of $125.1 million ($3.75 per basic share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting. The dilutive effect of the convertible notes, options and service-based awards would reduce basic EPS for the first half of 2007 by $0.24 per share. During the first half of 2007, cash used to settle forward contracts that do not qualify for cash flow hedge accounting was $54.9 million.

Sales in the first six months of 2008 were $1,016.3 million compared with $911.7 million in the same period of 2007. Shipments of primary aluminum for the first six months of 2008 were 397,894 tonnes compared with 373,272 tonnes for the comparable 2007 period.

“Century made important progress during the quarter,” said president and chief executive officer Logan W. Kruger.  “The unwind of our entire aluminum hedge book provides our investors with full exposure to the commodity.  We continue to believe firmly that metal markets, while volatile, will demonstrate long-term upward pressure consistent with ongoing cost increases and supply constraints, as well as increasing metal demand from emerging economies.   Construction is accelerating at the Helguvik greenfield site and we expect to begin pouring concrete by the fourth quarter of this year. Finally, the Century-Minmetals Jamaican bauxite and alumina joint venture project has moved into a full feasibility study which, if successful, could result in a project decision by the end of 2009.”

Century Aluminum Company owns primary aluminum capacity in the United States and Iceland, as well as an 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.

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

Helga Gunnarsdottir, Director-Corporate Finance, Landsbanki Islands hf.

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

Century Aluminum Company

Consolidated Statements of Operations

(in Thousands, Except Per Share Amounts)

(Unaudited)

	Three months ended June 30,						Six months ended June 30,
	2008			2007			2008			2007
NET SALES:
Third-party customers	$	420,032		$	370,883		$	776,925		$	751,736
Related parties		125,165			93,122			239,414			159,926
		545,197			464,005			1,016,339			911,662
COST OF GOODS SOLD		388,973			355,613			764,120			692,618
GROSS PROFIT		156,224			108,392			252,219			219,044
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		13,851			14,445			32,717			27,412
OPERATING INCOME		142,373			93,947			219,502			191,632
INTEREST EXPENSE – Net		(3,889	)		(7,439	)		(7,609	)		(16,469	)
NET LOSS ON FORWARD CONTRACTS		(203,784	)		(205,246	)		(652,092	)		(204,856	)
OTHER INCOME (EXPENSE) – Net		306			(3,139	)		(227	)		(3,295	)
LOSS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURES		(64,994	)		(121,877	)		(440,426	)		(32,988	)
INCOME TAX BENEFIT		57,087			57,045			195,330			28,958
LOSS BEFORE EQUITY IN EARNINGS OF JOINT VENTURES		(7,907	)		(64,832	)		(245,096	)		(4,030	)
EQUITY IN EARNINGS OF JOINT VENTURES		5,566			4,167			9,959			7,614
NET INCOME (LOSS)	$	(2,341	)	$	(60,665	)	$	(235,137	)	$	3,584
EARNINGS (LOSS) PER COMMON SHARE
Basic – Net income (loss)	$	(0.06	)	$	(1.77	)	$	(5.72	)	$	0.11
Diluted – Net income (loss)	$	(0.06	)	$	(1.77	)	$	(5.72	)	$	0.10
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic		41,143			34,224			41,092			33,371
Diluted		41,143			34,224			41,092			35,597

Century Aluminum Company

Consolidated Balance Sheets

(Dollars in Thousands)

(Unaudited)

	June 30, 2008			December 31, 2007
ASSETS
Current Assets:
Cash	$	351,644		$	60,962
Restricted cash		2,771			873
Short-term investments		31,937			280,169
Accounts receivable – net		94,493			93,451
Due from affiliates		33,288			26,693
Inventories		205,348			175,101
Prepaid and other current assets		59,886			40,091
Deferred taxes - current portion		111,931			69,858
Total current assets		891,298			747,198
Property, plant and equipment – net		1,278,406			1,260,040
Intangible asset - net		40,065			47,603
Goodwill		94,844			94,844
Deferred taxes - less current portion		514,437			321,068
Other assets		144,567			107,518
Total	$	2,963,617		$	2,578,271
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable, trade	$	100,913		$	79,482
Due to affiliates		348,614			216,754
Accrued and other current liabilities		88,723			60,482
Accrued employee benefits costs - current portion		11,659			11,997
Convertible senior notes		175,000			175,000
Industrial revenue bonds		7,815			7,815
Total current liabilities		732,724			551,530
Senior unsecured notes payable		250,000			250,000
Accrued pension benefit costs - less current portion		14,709			14,427
Accrued postretirement benefits costs - less current portion		191,093			184,853
Due to affiliates - less current portion		1,320,043			913,683
Other liabilities		57,191			39,643
Deferred taxes		54,240			62,931
Total noncurrent liabilities		1,887,276			1,465,537
Shareholders’ Equity:
Common stock (one cent par value, 100,000,000 shares authorized; 41,151,652 shares outstanding at June 30, 2008 and 40,988,058 at December 31, 2007)		412			410
Additional paid-in capital		867,106			857,787
Accumulated other comprehensive loss		(43,302	)		(51,531	)
Accumulated deficit		(480,599	)		(245,462	)
Total shareholders’ equity		343,617			561,204
Total	$	2,963,617		$	2,578,271

Century Aluminum Company

Consolidated Statements of Cash Flows

(Dollars in Thousands)

(Unaudited)

	Six months ended June 30,
	2008			2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(235,137	)	$	3,584
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Unrealized net loss on forward contracts		536,650			150,160
Depreciation and amortization		41,860			38,012
Deferred income taxes		(194,569	)		(48,949	)
Pension and other post retirement benefits		8,513			9,907
Stock-based compensation		11,658			2,598
Excess tax benefits from share based compensation		(657	)		(487	)
(Gain) Loss on disposal of assets		109			(95	)
Non-cash loss on early extinguishment of debt		-			2,461
Purchase of short-term trading securities		(97,532	)		(347,958	)
Sale of short-term trading securities		345,764			226,277
Undistributed earnings of joint ventures		(9,959	)		(7,614	)
Change in operating assets and liabilities:
Accounts receivable - net		(1,042	)		2,218
Due from affiliates		(6,595	)		(456	)
Inventories		(30,212	)		(21,934	)
Prepaid and other current assets		(20,821	)		(2,650	)
Accounts payable, trade		16,693			7,341
Due to affiliates		7,726			15,474
Accrued and other current liabilities		(5,544	)		(16,855	)
Other - net		(2,092	)		10,053
Net cash provided by operating activities		364,813			21,087
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(14,961	)		(7,678	)
Nordural expansion		(32,648	)		(58,981	)
Investment in joint ventures		(27,621	)		-
Proceeds from sale of property, plant and equipment		5			543
Restricted cash deposits		(1,898	)		2,599
Net cash used in investing activities		(77,123	)		(63,517	)
CASH FLOWS FROM FINANCIING ACTIVITIES:
Borrowings of long-term debt		-			30,000
Repayment of long-term debt		-			(314,800	)
Excess tax benefits from share based compensation		657			487
Issuance of common stock - net of issuance costs		2,335			418,105
Net cash provided by financing activities		2,992			133,792
NET INCREASE IN CASH		290,682			91,362
CASH, BEGINNING OF PERIOD		60,962			96,365
CASH, END OF PERIOD	$	351,644		$	187,727

Century Aluminum Company

Selected Operating Data

(Unaudited)

SHIPMENTS - PRIMARY ALUMINUM
	Direct (1)						Toll
	Metric Tons		(000) Pounds		$/Pound		Metric Tons		(000) Pounds		(000) Revenue
2008
2nd Quarter		131,639		290,214	$	1.37		66,533		146,681	$	147,128
1st Quarter		133,004		293,223	$	1.17		66,717		147,086	$	127,177
2007
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

(1) Does not include Toll shipments from Nordural