Kaiser operations rebound in 2005

Kaiser Aluminum lost $753.7 million in 2005, largely on the sale of factories that were hurriedly sold as part of the company’s bankruptcy strategy.

Despite the accounting loss, the company issued a press release that said operating income in 2005 reached $59.8 million on sales of $1.08 billion. That compares favorably to the $817.6 million operating loss in 2004.

The company is reorganizing and hopes to emerge from Chapter 11 bankruptcy protection in the second quarter this year. Once it exits bankruptcy, Kaiser will focus on manufacturing and selling fabricated aluminum parts rather the mining bauxite, refining alumina and smelting aluminum.

The company’s 49 percent stake in a smelter in Wales is among the last commodity plants that the company still holds.

This change makes the role of the company’s Trentwood rolling mill a key part of the company’s future.

Kaiser CEO Jack Hockema said in a press release that the company earned an $87.2 million profit from its fabricated products unit, which includes Trentwood.

Kaiser’s bankruptcy plan of reorganization has yet to be approved by United States District Court. The company also needs to handle appeals by certain insurers before it can exit bankruptcy with a clean financial statement.

For the fourth quarter, Kaiser had operating income of $14.3 million. The company had quarterly sales of $273.8 million, up $16.1 million from the similar period in 2004.