Strong 3Q earnings push Century Aluminum to 52-week high



Century Aluminum makes new 52-week high

Century Aluminum released its 3Q earnings on October 29. The company reported an adjusted earnings per share (or EPS) of $0.52. This is a 135% increase over its 2Q EPS of $0.22. The financial results of Century Aluminum (CENX) were better than Wall Street expectations. The share price has rallied on Wall Street, and hit a 52-week high. CENX has seen a frenzied rally for the past several quarters. The share price of CENX has zoomed almost four times in the past year.

In this series, we’ll analyze the 3Q results of Century Aluminum. We’ll also analyze certain strategic moves CENX is taking and how these moves will impact future earnings of the company. Finally, we’ll analyze the growth opportunities for Century Aluminum. Let’s begin by learning more about CENX.

century facilities

Key facts about Century Aluminum

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Century Aluminum is a primary aluminum producer. It has aluminum smelting and carbon manufacturing facilities. It owns aluminum smelting plants in Iceland and the U.S. The carbon anode manufacturing plants are in China and the Netherlands. The previous chart shows the manufacturing facilities of CENX.

Century Aluminum was formed in 1995 by Glencore International. Glencore is one of the world’s largest diversified natural resource companies, and a major producer and marketer of over 90 commodities worldwide.

The competitive landscape of Century Aluminum

Century Aluminum competes with other aluminum companies like Alcoa (AA), Rio Tinto (RIO), and Constellium N.V. (CSTM). It’s an upstream player in the aluminum value chain. You can read more about this in Market Realist’s article on the aluminum value chain.

Let’s now analyze the 3Q results of CENX in detail. Please note that Century Aluminum is currently part of the SPDR S&P Metals and Mining ETF (XME).


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