Kaiser Reports First Profitable Quarter Since 1992 Higher Aluminum Prices Offset Costs Attributed To Brief Strike

Despite the eight-day strike that seriously limited its U.S. operations in February, Kaiser Aluminum Corp. Thursday reported its first profitable quarter since the fourth quarter of 1992.

The company reported net income of $3.5 million on sales of $513 million, for the first quarter of 1995. That compares with a net loss of $34.7 million on sales of $415.1 million in the first quarter of 1994.

Included in the results are onetime pre-tax expenses of approximately $17 million associated with the 8-day strike by the United Steelworkers of America that idled five U.S. plants, including the company’s smelters at Mead and Tacoma, and its Trentwood rolling mill.

The $17 million also reflects expenses of a six-day strike by the National Workers Union at the company’s Alpart alumina refinery in Jamaica, and a four-day disruption of alumina production at Alpart due to a boiler failure, company officials said.

Despite the improved financial performance, the company reported a loss of 3 cents per common share after paying dividends on preferred stock. That compares with a loss of 67 cents per common share for the first quarter of 1994.

George T. Haymaker Jr., Kaiser’s board chairman and chief executive officer, said the company’s performance during the first quarter was due largely to improved price realizations for alumina, primary aluminum and fabricated aluminum products.

“We also continue to make progress in efficiency at our facilities,” Haymaker said.

“However,” he added, “the first quarter was adversely affected by the impact of the strikes, the boiler problem at Alpart, increased production costs and lower customer shipments of primary aluminum.”

Customer shipments of primary aluminum products were 47,700 metric tons in the first quarter of 1995, compared with 64,300 metric tons in the first quarter of 1994. Customer shipments of fabricated aluminum products totaled 94,500 metric tons in the first quarter of 1995 compared with 96,800 metric tons in the comparable period of 1994.

Maxxam Corp., the Houston-based holding company that owns 60 percent of Kaiser’s stock, Thursday reported a loss of $1 million, or 11 cents per common share, on sales of $581.3 million for the first quarter of 1995.

That compares with a net loss of $39.9 million, or $4.22 per share, on sales of $489 million during the first quarter of 1994.

In addition to its aluminum operations, Maxxam also owns forest products and real estate companies.