Kaiser Aluminum reports Q3 EPS 46c, consensus 50c

Reports Q3 revenue $744M, consensus $788M. “We were pleased to report third quarter results largely within our expectations in a challenging market with adjusted EBITDA of $48 million increasing $19 million over the prior year period, slightly above our outlook,” said Keith Harvey, president and CEO. “Demand for our aerospace products remained robust as our operations have been recovering to meet or exceed pre-pandemic peak levels, which we believe will be attainable by the end of this year. We have continued to flex our available capacity to capitalize on strengthening aerospace demand as general engineering demand has remained soft. Demand for packaging persisted during the quarter but appeared to be slowing down. While beverage can destocking appears to be abating, we are now seeing coated food products, which make up a considerable amount of our shipments, enter into a destocking phase. We remain focused on improving profitability in our packaging products through strong contract management and a shift towards higher margin, coated products further enabled by our roll coat capacity expansion project. Despite market headwinds including rising inflationary costs and challenging, short-term demand issues impacting our operational efficiencies, we remain uniquely positioned to execute our long-term strategy given our strong market and liquidity positions and flexible cost structure to navigate complex operating environments.”