Century Aluminum Co (NASDAQ:CENX) posted a net loss of $56.1 million in the third quarter of 2015. The performance was negatively impacted by a charge for lower of cost and market inventory adjustments amounting to $5.3 million. Other factors that negatively affected the financial numbers are a $0.4 million charge related to Ravenswood closure, a $1.4 million charge pertaining to the labor commotion at Hawesville, a $2.9 million charge related to the partial cut at Hawesville, and a $1.2 million charge associated to severance related with cost reductions.
The results received a boost from a purchase accounting gain related to Mt. Holly. After accounting for these charges, the company recorded an adjusted loss of $0.48 per share and net loss of $45.7 million. For 3Q2014, Century posted net income of $0.52 per common share or $50.4 million.
Century Aluminum Co (NASDAQ:CENX) reported the sales for 3Q2015 came at $454.5 million against $500.6 million for the comparable quarter in 2014. The shipments of primary aluminum in 3Q2015 came at 231,040 tonnes, up from 218,214 tonnes shipped recorded in the same quarter, a year earlier. Net cash utilized by operating activities for 3Q2015 stood at $31.9 million against net cash provided of $89.1 million in 3Q2014.
Cash/cash equivalents dropped $44.4 million in the third quarter of 2015 against an increase in cash/cash equivalents of $72 million in the same period a year earlier. The total liquidity position at the completion of 3Q2015 was $223 million, comprised of revolver availability and cash.
The management view
Michael Bless, the CEO and President of Century Aluminum Co (NASDAQ:CENX), said that sentiment towards a wide range of commodities, led by numerous factors, has deteriorated noticeably during the past few months. The problems in the primary aluminum segment are straightforward. He added that demand in majority of the developed markets remains strong.