Kaiser Aluminum anticipates a 5-10pc growth in its value-added revenue and a 35-45pc increase in its automotive extrusion sales this year.
However, demand from the aerospace sector may fall by 5-8pc though the company sees a full recovery in this sector by 2023-2024.
Kaiser also noted that it will close the Alcoa Warrick mill transaction by March 31. It expects the demand for cans to rise by 3-5pc this year and will try to resolve the supply chain issues that the aluminum cans sector is currently undergoing.
During 2020, the company’s aluminum shipments tallied at 227,703mt, down 24.5pc from 283,495mt in 2019. In Q4 2020, shipments declined by 28.5pc to 53,977mt, compared with 69,399mt in the last quarter of 2019.
Kaiser reported revenue of $697mn in 2020, down from $856mn in 2019 in its value-added segment. The company’s net income fell to $29mn from $62mn in 2019. During the fourth quarter, value-added revenue was $152mn, compared with $213mn in the prior-year period. Net income in Q4 2020, however, increased to $6mn from a loss of $11mn in Q4 2019.