Kaiser Aluminum continues to expect a 10-15pc decline in its value-added products revenue in Q4 2020 from the same quarter last year, driven by a 30-35pc drop in revenue in its aerospace application sector.
That said, increasing demand in the defense application and automotive extrusion sector will offset the weak demand in the aerospace segment the firm said in a statement on Thursday. With liquidity of $1bn, the company sees itself well-positioned to strengthen long-term growth.
The aluminum supplier’s shipments in the first nine months of the year declined to 383mn lbs (173,725mt) from 473mn lbs in January-September 2019. In Q3 2020, Kaiser’s shipments fell to 109mn lbs from 154mn lbs in the same quarter last year and from 119mn lbs in Q2 2020.
The company’s net sales dropped to $901mn in the January- September period from $1.145bn in 2019 and decreased to $256mn in the third quarter from $375mn in Q3 2019 and $276mn in Q2 2020. The drops were driven by a 29pc decline in its value-added segment revenue due to the fall in commercial aerospace demand.
Kaiser’s EBITDA in the nine-month period fell to $124mn from $160mn in January-September 2019 and dropped to $30mn in Q3 2020 from $57mn in Q3 2019 and $34mn Q2 2020.