California-based Kaiser Aluminum expects its revenue to increase by $375-400mn in the next three quarters owing to the acquisition of Alcoa’s Warrick rolling mill.
The company noted that auto and packaging demand remains strong, but the former is under pressure from the semiconductor shortage, which may hamper revenues. While defense and private aerospace industry demand is recovering, Kaiser does not see commercial aircraft demand recovering until 2023-24.
The manufacturer shipped 137mn lbs (62,142mt) of aluminum products in Q1 2021, down 14pc from 156mn lbs in Q1 2020. Net sales also fell by 13.8pc to $324mn from $369mn in the same period under comparison.
Kaiser noted that aluminum cans (and can stock) demand in North America is growing, driven by sustainability targets wherein aluminum is being used to replace plastic packaging for beverages like beer and seltzer.
The company posted a net income of $5mn in Q1 2021, compared with a profit of $29mn in last year’s quarter. Adjusted EBITDA also fell to $38mn from $59mn in the prior-year period.