Kaiser Reports Loss, Blames Low Aluminum Prices

Kaiser Aluminum Corp. reported a $6.6 million loss for the third quarter on Wednesday, a figure at the low end of a preliminary announcement made two weeks ago.

The red ink, equivalent to 12 cents per common share, contrasts with net income of $12.5 million, or 13 cents per share, for the same three-month period last year.

For the first nine months of 1996, Kaiser’s net income fell to $11.5 million, or 7 cents per share, compared with $39.3 million, or 40 cents per share, in the 1995 period.

The 1995 results were hurt by $17 million in expenses associated with a strike at five Kaiser plants, including the Mead smelter and Trentwood rolling mill. The two facilities employ 2,600.

Chairman George Haymaker Jr. said low prices for primary aluminum like that produced at Mead accounted for most of the loss for the period.

Cash prices on the London Metals Exchange were 21 percent lower than those of a year ago, he said, and 6 percent below those of last quarter.

Haymaker said the slippage was particularly damaging because Kaiser, anticipating stronger prices this year, did less hedging than normal to protect itself from market downturns.

Spokesman Robert Irelan said the company was adjusting its positions in the futures markets, but would not say how.

Nor could he say how much the failure to hedge more sales cost the company in the third quarter.

But Irelan did reiterate a warning from the company two weeks ago: Without an improvement in prices, fourth-quarter results will be worse than those for the third quarter.

The company continues to consider what steps to take to cut $120 million in costs by the end of next year, he added.

, DataTimes