Kaiser Aluminum reports modest Q1 income

Kaiser Aluminum Corp. has reported first-quarter 2023 results that include a 10.7 decline in shipments compared with one year ago but a return to profitability after losing money in the final quarter of last year.

The Franklin, Tennessee-based company, with a long-held presence in primary aluminum production, now owns the former Alcoa Warrick used beverage can (UBC) melting facility in Newburgh, Indiana. The firm’s CEO Keith A. Harvey, in its most recent sustainability report, also says Kaiser is striving to optimize the use of aluminum scrap in all of its operations.

In this year’s first quarter, Harvey says the Warrick facility yielded mixed results. “While destocking continued in the packaging market, we benefitted from improved pricing and a stabilization of our operations at Warrick following a highly challenging 2022,” he says.

“We remain optimistic on the long-term outlook for packaging given our niche market focus on coated products, the significant investments we are making and the continued secular shift to aluminum.”

Overall in the first quarter, Kasier had a net income of $16 million on $808 million in sales of 149,500 tons of aluminum. Compared with one year ago, the firm shipped 18,000 fewer tons of aluminum, yielding a $141 million decline in revenue. Compared with the prior quarter, however, Kaiser increased its revenue by $34 million while shipping 1,500 tons less product.

“Our first quarter results were better than anticipated as a result of our focused execution and continued traction on pricing along with favorable demand trends in certain key markets,” Harvey says.

“While the demand environment was mixed during the quarter, our performance overall met or exceeded our expectations, led by strengthening aerospace demand and our strong market position to service incremental volumes in this market,” he continues. “Looking ahead, we remain focused on cost reductions in our operations, improving manufacturing efficiencies and continuing commercial actions to improve our margins.”