Kaiser Aluminum’s revenue from its value-added businesses – large commercial aerospace and defence application could drop by 15-20pc in 2020 compared to 2019. 

 

In H2 2020, demand from these industries, which form 50pc of Kaiser’s value-added business revenue, is expected to fall by 10-15pc following the slow pace from Q2 2020. Kaiser expects demand for general engineering applications to be weaker but has forecasted stronger demand for automotive applications as the market returns to normal operations after COVID-19 related shutdowns.

 

In H1 2020, the company’s shipments fell by 14pc to 124,284mt compared to 144,242mt in H1 2019. Kaiser’s shipments decreased by 24pc to 53,977mt in Q2 2020 from 70,760mt in the same quarter last year. This decline is a reflection of the impact of COVID-19 on customer demand, the company noted. 

 

The firm’s net sales in H1 2020 fell to $645mn from $771mn in the same period last year. In the second quarter of 2020 Kaiser’s net sales declined to $276mn from $375mn in Q2 2019 and were down from $369mn in the previous quarter. 

 

Operating income in the first six months of 2020 fell to $68mn from $80mn in H1 2019. Kaiser’s operating income in Q2 2020 dropped to $21mn compared to $35mn in Q2 2019 and declined from $46mn in Q1 2020. 

 

The firm’s EBITDA also fell to $68mn in the first half of the year from $80mn in H1 2019. In the second quarter, Kaiser’s EBITDA decreased to $34mn from $48mn in Q2 2019 and fell from $59mn in Q1 2020. 

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