Century Aluminum’s 2Q15 shipments
Century Aluminum (CENX) reported its 2Q15 earnings on August 6, after the close of market hours. As we discussed in the previous part of this series, CENX’s share price crashed after the release of its 2Q15 earnings.
In this part, we’ll look at Century Aluminum’s 2Q15 financial results in detail.
2Q15 shipments decline
Century Aluminum’s 2Q15 global shipments were down ~5% in 2Q15 compared to 1Q15. The company’s shipments in North America fell 7% in 2Q15 compared to the previous quarter. However, its shipments in Iceland rose ~1% over this period.
However, Century Aluminum’s shipments have increased in 2Q15 compared to the similar quarter last year. The increase is largely due to its acquisition of the Mt. Holly smelter from Alcoa in 4Q14 (AA).
Why have shipments fallen?
The fall in Century Aluminum’s shipments in North America is partially due to the title transfer of approximately 5,400 tons in 1Q15. Century Aluminum’s shipments were bloated by 5,400 tons in 1Q15. As a result, the company’s 1Q15 shipments in North America had increased by an impressive 15% quarter-over-quarter.
The labor disturbance at Century Aluminum’s Hawesville plant also led to lower shipments in 2Q15.
Century Aluminum’s 2Q15 profits were negatively affected by lower all-in aluminum prices. Lower aluminum prices have also taken a toll on the 2Q15 earnings of other aluminum producers, including Alcoa (AA), Vale (VALE), and Rio Tinto (RIO).
Alcoa currently forms 4.6% of the SPDR S&P Metals and Mining ETF (XME).
Along with lower aluminum prices, several other factors dented Century Aluminum’s 2Q15 profits. We’ll discuss these in the next part of this series.