Kaiser Aluminum sees Q4 adjusted EBITDA in line to slightly higher

The company said, “Kaiser remains well positioned in the current mixed demand environment as a key supplier in diverse end markets with multi-year contracts with strategic partners. Commercial aerospace demand is expected to continue to strengthen and meet or exceed record pre-pandemic 2019 levels by the end of 2023, with business jet, defense and space markets all remaining strong. In packaging, shipments are expected to decline as destocking has shifted to coated food products, along with anticipated fourth quarter seasonality, which will be partly offset by contractual minimums in place with its customers. General engineering demand is expected to decline due to continued plate destocking and the anticipated fourth quarter seasonal decline. In automotive, the Company expects the market to remain relatively consistent with the third quarter 2023 due to the anticipated fourth quarter seasonal decline and uncertainties from the UAW strike. As a result, consolidated adjusted EBITDA in the fourth quarter 2023 is expected to be in line to slightly higher as compared to its adjusted fourth quarter 2022 results. The Company continues to believe its full year 2022 adjusted EBITDA represented the trough and remains cautiously optimistic its full year 2023 consolidated adjusted EBITDA and adjusted EBITDA margin will improve as it pursues cost reductions in its operations, improves manufacturing efficiencies and continues commercial actions to improve pricing. The Company’s capital investment plans remain focused on supporting demand growth through capacity expansion, sustaining its operations, enhancing product quality and increasing operating efficiencies. Total capital investments in 2023 are expected to be in the range of $170 million to $180 million, the majority of which will be focused on growth initiatives, primarily reflecting investments in the new roll coat line at the Warrick facility.”