Back to top

Image: Bigstock

Century Aluminum (CENX) Q4 Loss Narrower than Expectations

Read MoreHide Full Article

Century Aluminum (CENX - Free Report) posted a net loss of $168.5 million or $1.93 per share in fourth-quarter 2016, wider than a net loss of $43.1 million or 50 cents per share it posted a year ago.

The results in the reported quarter were hurt by a $152.2 million of impairment charge related to the Helguvik project in Iceland.

Barring one-time items, Century Aluminum’s adjusted net loss was 12 cents per share in the reported quarter, narrower than the Zacks Consensus Estimate of a loss of 16 cents.

Century Aluminum Company Price, Consensus and EPS Surprise

 

Century Aluminum Company Price, Consensus and EPS Surprise | Century Aluminum Company Quote

Revenues and Shipments

The company logged revenues of $339.8 million in the reported quarter, down around 11% year over year. Sales missed the Zacks Consensus Estimate of $345.8 million. Shipments of primary aluminum in the quarter were 183,210 tons, down from 211,710 tons shipped a year ago.  The decline in revenues and volumes was mainly due to curtailment actions.

FY16 Results

For full-year 2016, net loss was $252.4 million or $2.90 per share, wider than net loss of $59.3 million or 68 cents per share in 2015.  

Sales for the year were $1,319.1 million, down around 32% year over year, affected by lower prices for primary aluminium and curtailment actions.

Financials

Century Aluminum ended the quarter with cash and cash equivalents of around $132.4 million, up roughly 15% year over year. Net cash from operating activities in the quarter was $22.6 million.

Outlook

Century Aluminum’s President and CEO Michael Bless stated that the company made progress on a number of strategic fronts including the sale of the remaining assets at its original operating smelter in Ravenswood, WV. Bless also noted that Century Aluminum has excellent opportunities in its markets in the U.S. and Europe and the company will remain committed to invest in modest high return projects not dependent upon the prices of aluminum.

Price Performance

Century Aluminum has outperformed the Zacks categorized Metal Procurement & Fabrication industry in the past three months. The company’s shares have gained around 31% over this period, compared with roughly 3.9% gain recorded by the industry.



 

Zacks Rank & Key Picks

Century Aluminum currently carries a Zacks Rank #2 (Buy).

Other well-placed companies in the basic materials space include United States Steel Corporation (X - Free Report) , Ternium S.A. (TX - Free Report) and Methanex Corporation (MEOH - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
    
U.S. Steel has an expected long-term growth of 8%.

Ternium has an expected long-term growth of 18.4%.

Methanex has an expected long-term growth of 15%.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold.  Be among the very first to see them >>
 

Published in