EXHIBIT 99.1
NEWS RELEASE
[LOGO] Century ALUMINUM
Century Reports Third Quarter 2003 Financial Results
Monterey, CA, October 21, 2003 - Century Aluminum Company (NASDAQ:
CENX) reported a net loss of $5.4 million, or $.28 a common share after
preferred dividends, for the third quarter of 2003. This compares to a net loss
of $7.8 million, or $0.40 a common share after preferred dividends, for the
third quarter of 2002.
The loss reported for the 2003 third quarter would have been reduced
by $3.1 million, after tax, or $0.15 a share, if the above-market,
110-million-pound-a-year metal delivery contract that remains in place for 2003
and 2004 had been accounted for on the same basis as in the third quarter of
2002. The company began marking this contract and its replacement contract to
market in the first quarter of 2003. Also, the results for the 2003 quarter
include an after-tax charge of $1.0 million, or $0.05 a share, for the added
cost of alumina purchased on the open market due to an unplanned production
curtailment at a supplier facility, and a credit of $0.8 million, or $0.04 a
share, for the lower of cost or market inventory adjustments.
The loss in the 2002 third quarter included an after-tax charge of
$2.1 million, or $0.10 a share, for lower of cost or market inventory
adjustments; an after-tax charge of $1.0 million, or $0.05 a share, to write off
direct costs associated with a prospective acquisition; and a benefit of $1.5
million, $0.07 a share, from a reduction in estimated income taxes.
Sales for the third quarter of 2003 were $201.5 million compared
with $177.0 million for the third quarter of 2002. Shipments of primary aluminum
for the 2003 third quarter were 292.6 million pounds, compared with 262.3
million pounds for the year-ago quarter.
Net income for the first nine months of 2003 was $7.2 million, or
$0.27 a common share after preferred dividends. This compares with a net loss of
$15.8 million, or $0.84 a common share after preferred dividends, for the
year-ago period.
Sales in the first nine months of 2003 were $576.7 million, compared
with $536.4 million for the year-ago period. Shipments of primary aluminum for
the 2003 period were 839.6 million pounds compared with 787.8 million pounds for
the year-ago period.
The financial results for the first nine months of 2002 and the
first quarter of 2003 exclude the results from the acquisition of the 20-percent
interest in Century's Hawesville (KY) Operations on April 1, 2003.
Commenting on the company's performance, Craig A. Davis, Chairman
and Chief Executive Officer, said:
Century Aluminum Company
25ll Garden Road
Building A, Suite 200
Monterey, CA 93940
831-642-9300 Phone
831-642-9399 Fax
"Our financial results in the recent quarter were favorably impacted
by higher prices, by the lower cost capacity that we acquired at our Hawesville
Operations in April, and from progress in the company's on-going cost reduction
efforts."
Century owns 525,000 metric tons per year (mtpy) of primary aluminum
capacity. It owns and operates the 170,000-mtpy plant at Ravenswood, WV and the
244,000-mtpy plant at Hawesville, KY. Century also owns a 49.67 percent interest
in the 222,000-mtpy reduction plant at Mt. Holly, SC. Alcoa, Inc. owns the
remainder and is the operating partner. Century's headquarters are in Monterey,
CA.
Century's press releases may contain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. The
company cautions that such forward-looking statements are not guarantees of
future performance and involve significant risks and uncertainties. Actual
results may vary materially from those expressed or implied in the
forward-looking statements as a result of various factors.
Editorial Contact: A. T. Posti 831/642-9364
Century Aluminum Company
25ll Garden Road
Building A, Suite 200
Monterey, CA 93940
831-642-9300 Phone
831-642-9399 Fax
Century Aluminum Company
Consolidated Statements of Operations
(in Thousands, Except Per Share Amounts)
(Unaudited)
Three months ended Nine months ended
September 30 September 30
---------------------- ----------------------
2003 2002 2003 2002
--------- --------- --------- ---------
NET SALES:
Third-party customers ............................................. $ 170,086 $ 149,412 $ 487,287 $ 451,989
Related parties ................................................... 31,402 27,580 89,377 84,440
--------- --------- --------- ---------
201,488 176,992 576,664 536,429
COST OF GOODS SOLD ..................................................... 191,448 176,745 551,142 523,916
--------- --------- --------- ---------
GROSS PROFIT ........................................................... 10,040 247 25,522 12,513
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ........................... 3,929 4,282 12,150 12,221
--------- --------- --------- ---------
OPERATING INCOME (LOSS) ................................................ 6,111 (4,035) 13,372 292
INTEREST INCOME (EXPENSE) - Net ........................................ (11,258) (10,249) (32,616) (30,275)
NET GAIN (LOSS) ON FORWARD CONTRACTS ................................... (3,481) -- 38,423 --
OTHER EXPENSE .......................................................... (10) (1,872) (510) (1,975)
--------- --------- --------- ---------
INCOME (LOSS) BEFORE INCOME TAXES ...................................... (8,638) (16,156) 18,669 (31,958)
INCOME TAX (EXPENSE) BENEFIT ........................................... 3,271 7,079 (6,556) 12,187
--------- --------- --------- ---------
INCOME (LOSS) BEFORE MINORITY INTEREST AND
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE ................. (5,367) (9,077) 12,113 (19,771)
MINORITY INTEREST ...................................................... -- 1,313 986 3,939
--------- --------- --------- ---------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE ...................................... (5,367) (7,764) 13,099 (15,832)
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE, NET OF TAX BENEFIT OF $3.4 MILLION ....................... -- -- (5,878) --
--------- --------- --------- ---------
NET INCOME (LOSS) ...................................................... (5,367) (7,764) 7,221 (15,832)
PREFERRED DIVIDENDS .................................................... (500) (500) (1,500) (1,500)
--------- --------- --------- ---------
NET INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS .................... $ (5,867) $ (8,264) $ 5,721 $ (17,332)
========= ========= ========= =========
EARNINGS (LOSS) PER COMMON SHARE
Basic - Before cumulative effect of change in accounting principle . $ (0.28) $ (0.40) $ 0.55 $ (0.84)
Basic - Cumulative effect of change in accounting principle ........ $ -- $ -- $ (0.28) $ --
--------- --------- --------- ---------
Basic - Net income (loss) .......................................... $ (0.28) $ (0.40) $ 0.27 $ (0.84)
Diluted - Before cumulative effect of change in accounting principle $ (0.28) $ (0.40) $ 0.55 $ (0.84)
Diluted - Cumulative effect of change in accounting principle ...... $ -- $ -- $ (0.28) $ --
--------- --------- --------- ---------
Diluted - Net income (loss) ........................................ $ (0.28) $ (0.40) $ 0.27 $ (0.84)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic ............................................................. 21,070 20,554 21,070 20,554
Diluted ........................................................... 21,070 20,554 21,074 20,554
DIVIDENDS PER COMMON SHARE ............................................. $ -- $ 0.05 $ -- $ 0.15
See Notes to Consolidated Statements of Operations