Kaiser Sales Increase in First Quarter
By Metal Center News Staff
on Apr 24, 2019
Kaiser Aluminum, Foothill Ranch, Calif., reported net sales of $395 million in the first quarter, an increase of 1.8 percent from the same quarter in 2018. Net income increased 11.1 percent to $30 million.
“Continuing the positive trend from second-half 2018, we reported strong first-quarter 2019 results. Improving aerospace demand and non-contract value-added pricing drove strong results in the quarter, partially offset by approximately $5 million of cost inefficiencies at our Trentwood facility, a combination of unplanned equipment downtime in the finishing operations and purchased rolling ingot costs necessitated by our planned casting furnace rebuilds,” said Jack Hockema, chairman and CEO.
“Although demand for our general engineering products remains strong, we allocated a portion of our capacity for general engineering products in the quarter to address strong aerospace demand. This contrasts with 2017 and early 2018 when relatively soft aerospace demand enabled capacity to shift toward general engineering products,” said Hockema.
Net shipments in the quarter totaled 163 million pounds, a modest decline from first-quarter 2018, but above the previous quarter.
“The recent reduction in Boeing 737-MAX build rates has introduced uncertainty for commercial aerospace industry demand. While it is likely that the reduced build rates will eventually lead to some level of supply chain destocking, the amount and timing are uncertain until the situation is resolved. Meanwhile, demand for military aircraft continues to increase for the new generation F-35 Joint Strike Fighter and the modernized F-15X Super-fighter and F/A-18E/F Super Hornet fighter aircraft,” said Hockema.