Century Aluminum (CENX) 8-K Century Aluminum Reports 2005 Financial Results

Exhibit 99.1

Century Aluminum Reports 2005 Financial Results

MONTEREY, CA -- (MARKET WIRE) -- 02/22/2006 -- Century Aluminum Company (NASDAQ: CENX) today reported a net loss of $148.7 million, or $4.62 per diluted share, for the fourth quarter of 2005. Reported fourth quarter results were negatively impacted by an after-tax charge of $164.6 million, or $5.12 per diluted share, for mark-to-market adjustments on forward contracts (which will settle during the period 2006-2015) that do not qualify for cash flow hedge accounting.

In the second quarter of 2005, the company changed from the last-in first-out (LIFO) inventory valuation method to the first-in first-out (FIFO) method. Financial statements for periods prior to the second quarter of 2005 have been restated to reflect this change. Financial and operating results for 2004 include Nordural from the April 27, 2004, acquisition date.

In the fourth quarter of 2004, the company reported net income of $24.6 million, or $0.77 per diluted share. Before restatement, the company reported net income of $20.9 million, or $0.65 per diluted share.

Highlights of 2005 included:

–Primary aluminum shipments increased to a record 615,842 metric tonnes

–Revenues increased seven percent from the prior year to a record $1.13 billion

–Net cash provided by operating activities was a record $135 million, up over 27 percent from 2004

–Operating income of $127 million was the second highest in the company's history

–Fourth quarter results were impacted by energy costs and severe weather

–Nordural expansion continued on schedule and on budget

–Record production at Ravenswood

–Hawesville operations back at full capacity, record production in December

For 2005, Century reported a net loss of $116.3 million, or $3.62 per diluted share. Total year results include an after-tax charge of $198.2 million, or $6.17 per diluted share for mark-to-market adjustments on forward contracts (which will settle during the period 2006-2015) that do not qualify for cash flow hedge accounting. In 2004, restated net income totaled $33.5 million, or $1.14 per diluted share, after preferred dividends ($28.0 million, or $0.95 a share, fully diluted, after preferred dividends, before restatement).

Sales for the fourth quarter of 2005 were $292.9 million compared with $290.6 million for the fourth quarter of 2004. Shipments of primary aluminum for the 2005 fourth quarter were 156,014 metric tonnes, compared with 157,264 metric tonnes shipped in the year-ago quarter.

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Sales for 2005 were $1.13 billion compared with $1.06 billion for 2004, and total 2005 primary aluminum shipments of 615,842 metric tonnes compared with 597,864 metric tonnes shipped in 2004.

"Century performed well during the fourth quarter," said president and chief executive officer Logan W. Kruger. "Metal prices were robust and all of our plants operated at high levels, including Hawesville, which regained its normal operating efficiency. Unusually high energy costs and severe weather, however, increased our costs for the quarter.

"Overall, 2005 was a year of record production, revenue and cash flow from operations for Century. The Nordural expansion, which began its initial production on February 15, is continuing to proceed on budget for a scheduled completion in the fourth quarter of 2006. Looking ahead, we see attractive opportunities to build a larger, more diversified and more cost-competitive company."

Century presently owns 615,000 metric tonnes per year (mtpy) of primary aluminum capacity. The company owns and operates a 244,000 mtpy plant at Hawesville, Kentucky; a 170,000 mtpy plant at Ravenswood, West Virginia; and a 90,000 mtpy plant at Grundartangi, Iceland that is being expanded to 220,000 mtpy. The company also owns a 49.67-percent interest in a 222,000 mtpy reduction plant at Mt. Holly, South Carolina. ALCOA Inc. owns the remainder of the plant and is the operating partner. With the completion of the Grundartangi expansion, Century's total capacity will stand at 745,000 mtpy by the fourth quarter of 2006. Century also holds a 50-percent share of the 1.25 million mtpy Gramercy Alumina refinery in Gramercy, Louisiana and related bauxite assets in Jamaica. Century's corporate offices are located in Monterey, California.

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.

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Century Aluminum Company

Consolidated Statements of Operations

(in Thousands, Except Per Share Amounts)

(Unaudited)

	Three months ended						Year ended
	December 31,						December 31,
				2004						2004
	2005			Restated			2005			Restated
NET SALES:
Third-party customers	$	247,770		$	248,260		$	961,335		$	897,538
Related parties		45,104			42,343			171,027			163,209
		292,874			290,603			1,132,362			1,060,747
COST OF GOODS SOLD		258,170			233,830			970,685			875,460
GROSS PROFIT		34,704			56,773			161,677			185,287
SELLING, GENERAL ANDADMINISTRATIVE EXPENSES		9,827			7,950			34,773			24,916
OPERATING INCOME		24,877			48,823			126,904			160,371
INTEREST EXPENSE - Net		(5,976	)		(7,400	)		(24,301	)		(39,240	)
NET LOSS ON FORWARD CONTRACTS		(257,218	)		(4,375	)		(309,698	)		(21,521	)
LOSS ON EARLY EXTINGUISHMENT OF DEBT		-			-			(835	)		(47,448	)
OTHER INCOME (EXPENSE) - Net		(428	)		(507	)		275			(1,305	)
INCOME (LOSS) BEFORE INCOME
TAXES AND EQUITY IN EARNINGS OF
JOINT VENTURES		(238,745	)		36,541			(207,655	)		50,857
INCOME TAX  (EXPENSE) BENEFIT		88,275			(12,719	)		80,697			(18,196	)
INCOME (LOSS) BEFORE EQUITY
IN EARNINGS OF JOINT VENTURES		(150,470	)		23,822			(126,958	)		32,661
EQUITY IN EARNINGS
OF JOINT VENTURES		1,812			821			10,703			821
NET INCOME (LOSS)		(148,658	)		24,643			(116,255	)		33,482
PREFERRED DIVIDENDS		-			-			-			(769	)
NET INCOME (LOSS)
APPLICABLE TO COMMON SHAREHOLDERS	$	(148,658	)	$	24,643		$	(116,255	)	$	32,713

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EARNINGS (LOSS) PER
COMMON SHARE
Basic -
Net income (loss)	$	(4.62	)	$	0.77	$	(3.62	)	$	1.14
Diluted -
Net income (loss)	$	(4.62	)	$	0.77	$	(3.62	)	$	1.14
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
Basic		32,181			32,024		32,136			28,668
Diluted		32,181			32,099		32,136			28,775

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Century Aluminum Company

Consolidated Balance Sheets

(Dollars in Thousands)

(Unaudited)

	December 31,		December 31,
	2005		2004  Restated
ASSETS
Current Assets:
Cash	$	17,752	$	44,168
Restricted cash		2,028		1,678
Accounts receivable - net		83,016		79,576
Due from affiliates		18,638		14,371
Inventories		111,436		111,284
Prepaid and other current assets		23,918		10,055
Deferred taxes - current portion		37,705		24,642
Total current assets		294,493		285,774
Property, plant and equipment - net		1,070,158		806,250
Intangible asset - net		74,643		86,809
Goodwill		94,844		95,610
Other assets		126,403		58,110
Total	$	1,660,541	$	1,332,553
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable, trade	$	61,919	$	47,479
Due to affiliates		158,682		84,815
Industrial revenue bonds		7,815		7,815
Long-term debt - current portion		581		10,582
Accrued and other current liabilities		53,715		53,309
Accrued employee benefits costs
- current portion		9,333		8,458
Convertible senior notes		175,000		175,000
Total current liabilities		467,045		387,458
Senior unsecured notes payable - net		250,000		250,000
Nordural debt		230,436		80,711
Revolving credit facility		8,069		-
Accrued pension benefit costs
- less current portion		10,350		10,685
Accrued post retirement benefits costs
- less current portion		96,660		85,549
Other liabilities		28,010		34,961
Due to affiliates - less current portion		337,416		30,416
Deferred taxes		-		68,273
Total noncurrent liabilities		960,941		560,595

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Shareholders' Equity:
Common stock (one cent par value,
100,000,000 shares authorized;
32,188,165 shares outstanding
at December 31, 2005 and 32,038,297 at
December 31, 2004)	322			320
Additional paid-in capital	419,009			415,453
Accumulated other comprehensive loss	(91,418		)	(52,186		)
Retained earnings (accumulated deficit)	(95,358		)	20,913
Total shareholders' equity	232,555			384,500
Total	$	1,660,541		$	1,332,553

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Century Aluminum Company

Consolidated Statements of Cash Flows

(Dollars in Thousands)

(Unaudited)

	Year ended
	December 31,
				2004
	2005			Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	(116,255	)	$	33,482
Adjustments to reconcile net income to net cash
provided by operating activities:
Unrealized net loss on forward contracts		306,756			2,405
Depreciation and amortization		56,533			50,254
Deferred income taxes		(80,697	)		9,925
Pension and other post retirement benefits		12,381			8,040
Workers' compensation		(1,572	)		820
(Gain) loss on disposal of assets		(32	)		761
Non cash loss on early extinguishment of debt		253			9,659
Change in operating assets and liabilities:
Accounts receivable - net		(3,440	)		(19,440	)
Due from affiliates		(4,267	)		(3,623	)
Inventories		(152	)		(16,023	)
Prepaid and other current assets		(10,092	)		(3,590	)
Accounts payable, trade		8,528			2,602
Due to affiliates		920			16,179
Accrued and other current liabilities		(11,801	)		15,507
Other - net		(22,127	)		(1,130	)
Net cash provided by operating activities		134,936			105,828
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(18,027	)		(15,240	)
Nordural expansion		(280,086	)		(59,784	)
Proceeds from sale of property, plant and equipment		124			-
Restricted cash deposits		(350	)		(1,678	)
Business acquisitions, net of cash acquired		(7,000	)		(198,584	)
Net cash used in investing activities		(305,339	)		(275,286	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of long-term debt		222,937			425,883
Repayment of long-term debt		(83,279	)		(425,881	)
Repayment of related party debt		-			(14,000	)
Net borrowings under revolving credit facility		8,069			-
Financing fees		(5,132	)		(13,062	)
Dividends		(16	)		(3,311	)
Issuance of common stock		1,408			215,793
Net cash provided by financing activities		143,987			185,422
NET INCREASE (DECREASE) IN CASH		(26,416	)		15,964
CASH, BEGINNING OF PERIOD		44,168			28,204
CASH, END OF PERIOD	$	17,752		$	44,168

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Century Aluminum Company

Selected Operating Data

(Unaudited)

SHIPMENTS - PRIMARY ALUMINUM

		Direct (1)				Toll
		Metric	(000)			Metric	(000)	(000)
		Tons	Pounds	$/Pound		Tons	Pounds	Revenue
2005
4th Quarter		132,712	292,581	$	0.88	23,302	51,372	$	35,703
3rd Quarter		129,555	285,619	$	0.83	23,435	51,665	$	33,175
2nd Quarter		130,974	288,748	$	0.86	23,025	50,761	$	34,174
1st Quarter		130,083	286,783	$	0.88	22,756	50,168	$	33,372
Total		523,324	1,153,731	$	0.86	92,518	203,966	$	136,424
2004
4th Quarter		133,940	295,287	$	0.87	23,324	51,421	$	33,077
3rd Quarter		132,893	292,978	$	0.83	23,232	51,218	$	31,095
2nd Quarter		133,726	294,816	$	0.82	16,148	35,600	$	21,483
1st Quarter		134,601	296,743	$	0.78	-	-	$	-
Total		535,160	1,179,824	$	0.83	62,704	138,239	$	85,655
(1)	Does not include Toll shipments from Nordural

FORWARD PRICED SALES - As of December 31, 2005

		2006	2007		2008	2009	2010	2011-
		(1)(2)	(2)		(2)	(2)	(2)	2015(2)
Base Volume
	Pounds (000)	437,381	374,565	240,745		231,485	231,485	826,733
	Metric Tons	198,393	169,900	109,200		105,000	105,000	375,000
	Percent of
	estimated
	capacity	28%	22%		14%	14%	14%		10%
Potential Additional Volume(2)
	Pounds (000)	55,556	111,113	220,903		231,485	231,485	826,733
	Metric Tons	25,200	50,400	100,200		105,000	105,000	375,000
	Percent of
	estimated
	capacity	4%	7%		13%	14%	14%		10%

(1) The forward priced sales in 2006 exclude January 2006 shipments to customers that are priced based upon the prior month's market price.

(2) Certain financial sales contracts included in the forward priced sales base volume for the period 2006 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 contracts will be settled monthly and, if the market price exceeds the ceiling price for all contract months through 2015, the potential additional sales volume would be equivalent to the amounts shown above.

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