Century Aluminum (CENX) 8-K Century Aluminum Reports Third Quarter 2009 Earnings

Exhibit 99.1

Century Aluminum Reports Third Quarter 2009 Earnings

MONTEREY, CA. October 27, 2009 -- Century Aluminum Company (NASDAQ:CENX) reported net income of $40.1 million ($0.45 per basic and diluted common share) for the third quarter of 2009.  The reported earnings per share data reflect, as prescribed by GAAP, net income of $33.3 million allocable to common shareholders without effect for the July 2008 issuance of preferred shares.  Financial results were positively impacted by a net after- tax benefit of $55.6 million primarily from realized and unrealized gains related to the termination of the existing power contract and its replacement with a new power contract at the Hawesville, Kentucky smelter and a $7.5 million tax benefit related to the release of tax reserves no longer required.  Cost of sales for the quarter includes a $14.4 million non-cash charge for the portion of power costs at Hawesville paid by the previous power supplier per the terms of the Hawesville power agreements.

In the third quarter of 2008, the company reported net income (as adjusted to reflect the implementation of ASC 470-20 Debt with Conversion and Other Options) of $35.8 million ($0.58 per basic and $0.55 per diluted common share).  The reported earnings per share data reflected net income of $27.5 million allocable to common shareholders.  These results were negatively impacted by a net after-tax charge of $50.4 million for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting.  Results were positively impacted by a $3.3 million tax benefit related to the release of tax reserves no longer required.

Recent highlights included:

• Approximately 42 percent of U.S. capacity (28 percent of global capacity) remains curtailed.

• The Grundartangi smelter shipped at an average annual rate of approximately 275,000 metric tons during the quarter.

• Nordural maintained modest activity levels at its greenfield project site near Helguvik, and is progressing plans, including a financing program, for a possible restart of major construction activities.

• Century divested its 50% ownership stakes in the Gramercy, Louisiana alumina refinery and the St. Ann, Jamaica bauxite mine.

• Century entered into agreements to retire $128 million principal amount of its 1.75% convertible senior notes in exchange for approximately 11.4 million shares of its common stock.

• Cash totaled $196.3 million on September 30, 2009.

Sales in the third quarter of 2009 were $228.7 million, compared with $552.2 million in the third quarter of 2008.  Shipments of primary aluminum for the quarter totaled 146,245 tonnes compared with 203,618 tonnes in the year-ago quarter.

For the first nine months of 2009, the company reported a net loss of $181.6 million ($2.56 per basic and diluted common share).  These results were negatively impacted by a net after-tax charge of $35.3 million for costs associated with production curtailments at U.S. smelters and a $73.2 million impairment charge associated with the divestiture of our Gramercy, LA and St. Ann, Jamaica equity investments.  Results for the nine month period were positively impacted by a net after-tax benefit of $57.4 million primarily from realized and unrealized gains related to the termination of the existing power contract and its replacement with a new power contract at the Hawesville, KY smelter and a $7.5 million tax benefit related to the release of tax reserves no longer required.  Net after-tax inventory lower of cost or market adjustments of $26.9 million favorably impacted the nine month results.  Cost of sales for the nine months includes a $14.4 million non-cash charge for the portion of power costs at Hawesville paid by the previous power supplier per the terms of the Hawesville power agreements.

For the first nine months of 2008, the company reported a net loss (as adjusted to reflect the implementation of ASC 470-20 Debt with Conversion and Other Options) of $201.6 million ($4.66 per basic and diluted common share).  Results were negatively impacted by a net after-tax charge of $466.2 million for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting.  Results for the nine month period were positively impacted by net tax benefits of $15.9 million for various non-recurring items.

Sales in the first nine months of 2009 were $642.4 million compared with $1,568.6 million in the same period of 2008.  Shipments of primary aluminum for the first nine months of 2009 were 457,426 tonnes compared with 601,511 tonnes for the comparable 2008 period.

"Since the onset of the financial crisis, we have focused on the critical goals of risk reduction and liquidity enhancement," commented Logan W. Kruger, president and chief executive officer.  "I am pleased with our meaningful accomplishments toward these objectives.  Cost reduction efforts at Grundartangi and Hawesville have yielded tangible results.  The agreements underlying Hawesville's new long-term power contract protect the company during these uncertain times and increase our options for this smelter over the longer-term.  The Public Service Commission in West Virginia also approved a one year extension on our special rate power contract at Ravenswood, preserving our options at that smelter while we work through improving its cost structure.  Importantly, we have reduced our 2011 debt repayment obligation to a manageable level, while deleveraging the balance sheet in the process.  Century's financial position is meaningfully stronger today as a result of these efforts.”

Mr. Kruger continued, "We have made significant progress in preparing the Helguvik project for the restart of major construction.  While continuing modest site activity, our project team is working successfully with suppliers to reduce the new smelter's expected capital cost.  We are presently assessing our financing options for the project's first phase.  In addition, we are working with the key constituencies in Iceland to satisfy the requirements for a full restart; toward that end, in August we signed an Investment Agreement with the Government of Iceland.

"Looking ahead, we note some improvement in global economic conditions and are watching closely for consistency in these data," concluded Mr. Kruger.  "Demand for industrial metals has strengthened in China and in certain other developing regions, and appears to have stabilized in the developed economies.  However, capacity restarts and persistently high inventory levels require us to remain cautious.  We will maintain an appropriate balance between preserving financial strength and flexibility in the short-term and positioning the company for longer-term growth when we believe conditions are appropriate."

Century Aluminum Company owns primary aluminum capacity in the United States and Iceland. 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:

Atli B. Gudmundsson, Senior Manager - Corporate Finance, NBI hf.

Steingrimur Helgason, Director - Corporate Finance, NBI hf.

Century Aluminum Company

Consolidated Statements of Operations

(in Thousands, Except Per Share Amounts)

(Unaudited)

	Three months ended September 30,						Nine Months ended September 30,
	2009			2008			2009			2008
NET SALES:				As Adjusted						As Adjusted
Third-party customers	$	169,927		$	426,771		$	480,438		$	1,203,696
Related parties		58,772			125,468			162,001			364,882
		228,699			552,239			642,439			1,568,578
COST OF GOODS SOLD		231,051			430,256			722,379			1,194,376
GROSS PROFIT (LOSS)		(2,352	)		121,983			(79,940	)		374,202
OTHER OPERATING INCOME – Net		(55,599	)		-			(22,101	)		-
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		11,395			11,253			32,786			43,970
OPERATING INCOME (LOSS)		41,852			110,730			(90,625	)		330,232
INTEREST EXPENSE – Net		(7,845	)		(6,290	)		(22,788	)		(17,498	)
INTEREST EXPENSE – RELATED PARTIES		-			(1,144	)		-			(1,144	)
INTEREST INCOME – AFFILIATES		145			146			431			146
NET LOSS ON FORWARD CONTRACTS		(914	)		(79,103	)		(7,784	)		(731,195	)
OTHER INCOME (EXPENSE) – Net		(243	)		(1,370	)		101			(1,597	)
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURES		32,995			22,969			(120,665	)		(421,056	)
INCOME TAX BENEFIT		6,577			10,313			8,100			206,949
INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF JOINT VENTURES		39,572			33,282			(112,565	)		(214,107	)
EQUITY IN EARNINGS (LOSSES) OF JOINT VENTURES		570			2,507			(69,063	)		12,466
NET INCOME (LOSS)	$	40,142		$	35,789		$	(181,628	)	$	(201,641	)
INCOME (LOSS) PER COMMON SHARE
Basic	$	0.45		$	0.58		$	(2.56	)	$	(4.66	)
Diluted	$	0.45		$	0.55		$	(2.56	)	$	(4.66	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic		74,214			47,720			71,023			43,317
Diluted		74,721			49,975			71,023			43,317
Net Income (Loss) Allocated to Common Shareholders	$	33,270		$	27,461		$	(181,628	)	$	(201,641	)

Century Aluminum Company

Consolidated Balance Sheets

(Dollars in Thousands)

(Unaudited)

	September 30, 2009			December 31, 2008
ASSETS				As Adjusted
Current Assets:
Cash	$	196,337		$	129,400
Restricted cash		8,369			865
Short-term investments		-			13,686
Accounts receivable – net		44,661			60,859
Due from affiliates		16,052			39,062
Inventories		130,623			138,111
Prepaid and other current assets		90,262			99,861
Deferred taxes - current portion		-			32,290
Total current assets		486,304			514,134
Property, plant and equipment – net		1,307,855			1,340,037
Intangible asset – net		-			32,527
Due from affiliates – less current portion		7,599			7,599
Other assets		76,912			141,061
Total	$	1,878,670		$	2,035,358
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable, trade	$	82,412		$	102,143
Due to affiliates		26,517			70,957
Accrued and other current liabilities		48,867			58,777
Accrued employee benefit costs – current portion		12,070			12,070
Convertible senior notes		145,292			152,700
Industrial revenue bonds		7,815			7,815
Total current liabilities		322,973			404,462
Senior unsecured notes payable		250,000			250,000
Revolving credit facility		-			25,000
Accrued pension benefit costs – less current portion		44,622			50,008
Accrued postretirement benefits costs – less current portion		163,317			219,539
Other liabilities		35,730			33,464
Deferred taxes		66,432			71,805
Total noncurrent liabilities		560,101			649,816
Shareholders’ Equity:
Preferred stock (one cent par value, 5,000,000 shares authorized; 145,895 shares outstanding at September 30, 2009 and 155,787 at December 31, 2008)		2			2
Common stock (one cent par value, 195,000,000 shares authorized; 76,149,918 shares outstanding at September 30, 2009 and 49,052,692 at December 31, 2008)		761			491
Additional paid-in capital		2,392,505			2,272,128
Accumulated other comprehensive loss		(61,711	)		(137,208	)
Accumulated deficit		(1,335,961	)		(1,154,333	)
Total shareholders’ equity		995,596			981,080
Total	$	1,878,670		$	2,035,358

Century Aluminum Company

Consolidated Statements of Cash Flows

(Dollars in Thousands)

(Unaudited)

	Nine months ended September 30,
	2009			2008
CASH FLOWS FROM OPERATING ACTIVITIES:				As Adjusted
Net loss	$	(181,628	)	$	(201,641	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Unrealized net loss on forward contracts		1,680			605,105
Unrealized gain on contractual receivable		(81,168	)		-
Realized benefit of contractual receivable		8,634			-
Write-off of intangible asset		23,758			-
Accrued plant curtailment costs		12,956			-
Depreciation and amortization		56,886			62,912
Lower of cost or market inventory adjustment		(40,494	)		-
Deferred income taxes		26,212			(200,330	)
Pension and other postretirement benefits		10,721			11,677
Stock-based compensation		2,068			12,034
Equity investment impairment		73,234			-
Undistributed earnings of joint ventures		(4,171	)		(12,466	)
Change in operating assets and liabilities:
Accounts receivable - net		16,198			(22,403	)
Purchase of short-term trading securities		-			(97,532	)
Sale of short-term trading securities		13,686			348,416
Due from affiliates		23,010			(9,771	)
Inventories		29,656			(36,119	)
Prepaid and other current assets		69,284			(389	)
Accounts payable, trade		(11,260	)		15,266
Due to affiliates		(18,152	)		(1,145,002	)
Accrued and other current liabilities		(7,058	)		(28,523	)
Other - net		4,659			45
Net cash provided by (used in) operating activities		28,711			(698,721	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(14,667	)		(26,691	)
Nordural expansion		(17,606	)		(53,397	)
Investments in and advances to joint ventures		(1,038	)		(36,973	)
Restricted and other cash deposits		(7,504	)		(9,710	)
Net cash used in investing activities		(40,815	)		(126,771	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt – related party		-			(480,198	)
Repayment under revolving credit facility		(25,000	)		-
Excess tax benefits from share-based compensation		-			657
Issuance of preferred stock		-			929,480
Issuance of common stock – net		104,041			443,646
Net cash provided by financing activities		79,041			893,585
NET CHANGE IN CASH		66,937			68,093
CASH, BEGINNING OF THE PERIOD		129,400			60,962
CASH, END OF THE PERIOD	$	196,337		$	129,055

Century Aluminum Company

Selected Operating Data

(Unaudited)

SHIPMENTS - PRIMARY ALUMINUM
	Direct (1)			Toll
	Metric Tons	(000) Pounds	$/Pound	Metric Tons	(000) Pounds	(000) Revenue
2009
3rd Quarter	77,023	169,807	$0.82	69,222	152,609	$88,780
2nd Quarter	76,817	169,353	$0.69	68,876	151,846	$72,136
1st Quarter	97,392	214,712	$0.72	68,096	150,126	$71,048
2008
3rd Quarter	135,200	298,065	$1.36	68,418	150,835	$148,227
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

(1) Does not include Toll shipments from Nordural Grundartangi