Century Aluminum (CENX) 8-K Century Aluminum Reports Second Quarter 2007 Results

Exhibit 99.1

Century Aluminum Reports Second Quarter 2007 Results

MONTEREY, CA. July 24, 2007 -- Century Aluminum Company (NASDAQ:CENX) reported a net loss of $60.7 million ($1.77 per basic and diluted share) for the second quarter of 2007. Reported second quarter results were negatively impacted by 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 by 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.

In the second quarter of 2006, the company reported net income of $45.8 million ($1.41 per basic share and $1.35 per diluted share), which included an after-tax charge of $19.5 million ($0.60 per basic share and $0.57 per diluted share) for mark-to-market adjustments on forward contracts that do not qualify for cash flow hedge accounting.

Second quarter 2007 highlights included:

·   Strong operating earnings were generated on revenues of $464.0 million, which increased 3.7 percent from record levels set in the first quarter of 2007.

·   All primary aluminum facilities operated at or above capacity.

·   The first cells of the 40,000 tonne expansion of the Grundartangi, Iceland smelter were energized on July 2.  The project remains on schedule and budget for a fourth quarter, 2007 completion.

·   Century signed a definitive agreement with Icelandic electric power suppliers Hitaveita Sudurnesja and Orkuveita Reykjavikur for the supply of electrical power to the new aluminum smelter project to be built near Helguvik, Iceland.  These contracts provide for the supply of power for approximately 250,000 tonnes of aluminum production.

·   A memorandum of understanding was signed with the Guangxi Investment Group Company to explore the feasibility of developing a project including a high purity aluminum reduction plant and related bauxite and alumina facilities in the Guangxi Zhuang Autonomous Region in China.

Sales in the second quarter of 2007 were $464.0 million, compared with $406.0 million in the second quarter of 2006.  Shipments of primary aluminum for the quarter totaled 188,650 tonnes compared with 171,715 tonnes in the year-ago quarter, reflecting the impact of the Grundartangi expansion to 220,000 tonnes, which was completed in the fourth quarter of 2006.

For the first half of 2007 the company reported net income of $3.6 million ($0.11 per basic and $0.10 per diluted share), which includes 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 performance shares would reduce basic EPS for the first half of 2007 by $0.24 per share. This result compares with a net loss of $95.8 million ($2.96 per basic and diluted share) in the year-ago period, which included an after-tax charge of $203.0 million ($6.28 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 2006 by $0.14 per share.

Sales in the first six months of 2007 were $911.7 million compared with $752.9 million in the same period of 2006. Shipments of primary aluminum for the first six months of 2007 were 373,272 tonnes compared with 328,666 tonnes for the comparable 2006 period.

“We made important progress on our long-term initiatives during the quarter,” said president and chief executive officer Logan W. Kruger.  “The continuing expansion of Grundartangi remains on schedule and budget.  At our Helguvik greenfield project, we signed contracts with each of our two power supply partners and advanced the various permitting processes.  In addition, we raised equity capital for the plant’s construction and became the first U.S. company to list its shares on the stock exchange in Iceland.”

- ### -

Century Aluminum’s quarterly conference call is scheduled for 5:30 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 June 30,						Six months ended June 30,
	2007			2006			2007			2006
NET SALES:
Third-party customers	$	370,883		$	356,242		$	751,736		$	654,715
Related parties		93,122			49,734			159,926			98,207
		464,005			405,976			911,662			752,922
COST OF GOODS SOLD		355,613			297,972			692,618			568,450
GROSS PROFIT		108,392			108,004			219,044			184,472
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		14,445			8,376			27,412			20,495
OPERATING INCOME		93,947			99,628			191,632			163,977
INTEREST EXPENSE – Net		(7,439	)		(8,647	)		(16,469	)		(15,202	)
NET LOSS ON FORWARD CONTRACTS		(205,246	)		(30,456	)		(204,856	)		(317,216	)
OTHER INCOME (EXPENSE) - Net		(3,139	)		37			(3,295	)		(124	)
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURES		(121,877	)		60,562			(32,988	)		(168,565	)
INCOME TAX (EXPENSE) BENEFIT		57,045			(19,109	)		28,958			65,247
INCOME (LOSS) BEFORE EQUITY IN EARNINGS OF JOINT VENTURES		(64,832	)		41,453			(4,030	)		(103,318	)
EQUITY IN EARNINGS OF JOINT VENTURES		4,167			4,347			7,614			7,547
NET INCOME (LOSS)	$	(60,665	)	$	45,800		$	3,584		$	(95,771	)
EARNINGS (LOSS) PER COMMON SHARE
Basic – Net Income (loss)	$	(1.77	)	$	1.41		$	0.11		$	(2.96	)
Diluted – Net Income (loss)	$	(1.77	)	$	1.35		$	0.10		$	(2.96	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic		34,224			32,419			33,371			32,341
Diluted		34,224			34,297			35,597			32,341

Century Aluminum Company

Consolidated Balance Sheets

(Dollars in Thousands)

(Unaudited)

	June 30, 2007			December 31, 2006
ASSETS
Current Assets:
Cash	$	187,727		$	96,365
Restricted cash		2,012			2,011
Short term investments		121,681			-
Accounts receivable – net		111,153			113,371
Due from affiliates		37,999			37,542
Inventories		167,344			145,410
Prepaid and other current assets		20,355			19,830
Deferred taxes – current portion		120,196			103,110
Total current assets		768,467			517,639
Property, plant and equipment – net		1,251,952			1,218,777
Intangible asset – net		54,599			61,594
Goodwill		94,844			94,844
Other assets		335,814			292,380
Total	$	2,505,676		$	2,185,234
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable, trade	$	70,070		$	64,849
Due to affiliates		279,820			282,282
Accrued and other current liabilities		68,473			75,143
Long term debt – current portion		618			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		612,879			646,277
Senior unsecured notes payable		250,000			250,000
Nordural debt		54,018			309,331
Accrued pension benefit costs – less current portion		20,789			19,239
Accrued postretirement benefits costs – less current portion		214,772			206,415
Due to affiliates – less current portion		655,782			554,864
Other liabilities		42,067			27,811
Deferred taxes		54,205			41,587
Total noncurrent liabilities		1,291,633			1,409,247
Shareholders’ Equity:
Common stock (one cent par value, 100,000,000 sharesauthorized; 40,952,070 shares outstanding at June 30, 2007 and 32,457,670 at December 31, 2006)		410			325
Additional paid-in capital		853,273			432,270
Accumulated other comprehensive loss		(111,890	)		(166,572	)
Accumulated deficit		(140,629	)		(136,313	)
Total shareholders’ equity		601,164			129,710
Total	$	2,505,676		$	2,185,234

Century Aluminum Company

Consolidated Statements of Cash Flows

(Dollars in Thousands)

(Unaudited)

	Six Months ended June 30,
	2007			2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	3,584		$	(95,771	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Unrealized net loss on forward contracts		150,160			283,573
Depreciation and amortization		38,012			32,224
Deferred income taxes		(48,949	)		(29,806	)
Pension and other post retirement benefits		9,907			7,139
Stock-based compensation		2,598			3,872
Excess tax benefits from share based compensation		(487	)		(1,090	)
(Gain) loss on disposal of assets		(95	)		45
Non-cash loss on early extinguishment of debt		2,461			-
Increase in short-term investments – net		(121,681	)		-
Undistributed earnings of joint ventures		(7,614	)		(7,547	)
Change in operating assets and liabilities:
Accounts receivable - net		2,218			(35,175	)
Due from affiliates		(456	)		3,003
Inventories		(21,934	)		(17,880	)
Prepaid and other current assets		(2,650	)		(3,459	)
Accounts payable, trade		7,341			(710	)
Due to affiliates		15,474			2,173
Accrued and other current liabilities		(16,855	)		(69,243	)
Other - net		10,053			(4,058	)
Net cash provided by operating activities		21,087			67,290
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(7,678	)		(7,568	)
Nordural expansion		(58,981	)		(109,002	)
Proceeds from sale of property, plant and equipment		543			10
Restricted cash deposits		2,599			(4,001	)
Net cash used in investing activities		(63,517	)		(120,561	)
CASH FLOWS FROM FINANCIING ACTIVITIES:
Borrowings of long-term debt		30,000			69,000
Repayment of long-term debt		(314,800	)		(288	)
Net repayments under revolving credit facility		-			(8,069	)
Excess tax benefits from share based compensation		487			1,090
Issuance of common stock		418,105			2,961
Net cash provided by financing activities		133,792			64,694
NET INCREASE IN CASH		91,362			11,423
CASH, BEGINNING OF PERIOD		96,365			17,752
CASH, END OF PERIOD	$	187,727		$	29,175

Century Aluminum Company

Selected Operating Data

(Unaudited)

SHIPMENTS - PRIMARY ALUMINUM
	Direct (1)						Toll
	Metric Tons		Pounds (000)		$/Pound		Metric Tons		Pounds (000)		Revenue (000)
2007
2ndQuarter		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
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 June 30, 2007
	2007(1)(2)			2008 (2)			2009 (2)			2010 (2)			2011-2015(2)
Base Volume:
Pounds (000)		183,777			240,745			231,485			231,485		826,733
Metric tons		83,360			109,200			105,000			105,000		375,000
Percent of capacity		21	%		14	%		13	%		13	%	9	%
Potential additional volume (2):
Pounds (000)		55,556			220,903			231,485			231,485		826,733
Metric tons		25,200			100,200			105,000			105,000		375,000
Percent of capacity		7	%		12	%		13	%		13	%	9	%

(1)

The forward priced sales in 2007 exclude July 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.