Forward-Looking Statements



This Quarterly Report on Form 10-Q ("Report") contains statements which
constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements appear throughout
this Report and can be identified by the use of forward-looking terminology such
as "believes," "expects," "may," "estimates," "will," "should," "plans" or
"anticipates," or the negative of the foregoing or other variations of
comparable terminology, or by discussions of strategy. Readers are cautioned
that any such forward­looking statements are not guarantees of future
performance and involve significant risks and uncertainties and that actual
results may vary from those in the forward-looking statements as a result of
various factors. These factors include: (i) the effectiveness of management's
strategies and decisions, including strategic investments, capital spending
strategies, processes and countermeasures implemented to address operational and
supply chain challenges and the execution of those strategies; (ii) general
economic and business conditions, including the impact of the global outbreak of
Coronavirus Disease 2019 ("COVID-19") and governmental and other actions taken
in response, cyclicality, reshoring, supply interruptions, including the most
recent disruptions resulting from the supply demand imbalances in the magnesium
and silicon markets, and other conditions that impact demand drivers in the
aerospace/high strength, automotive, general engineering, packaging and other
end markets we serve; (iii) our ability to participate in mature and anticipated
new automotive programs expected to launch in the future and successfully launch
new automotive programs; (iv) changes or shifts in defense spending due to
competing national priorities; (v) pricing, market conditions and our ability to
effectively execute commercial and labor strategies, pass through cost
increases, including the institution of surcharges, and flex costs in response
to changing economic conditions and inflation; (vi) developments in technology;
(vii) the impact of our future earnings, cash flows, financial condition,
capital requirements and other factors on our financial strength and
flexibility; (viii) new or modified statutory or regulatory requirements; and
(ix) the successful integration of acquired operations and technologies continue
to drive innovative solutions and further advance our capabilities. This Item
and Part I, Item 1A. "Risk Factors" included in our Annual Report on Form 10-K
for the year ended December 31, 2021 each identify other factors that could
cause actual results to vary. No assurance can be given that these are all of
the factors that could cause actual results to vary materially from the
forward­looking statements.

The following discussion and analysis of our financial condition and results of
operations should be read in conjunction with Part I, Item 1. "Financial
Statements" of this Report and our consolidated financial statements and related
notes included in Part II, Item 8. "Financial Statements and Supplementary Data"
of our Annual Report on Form 10-K for the year ended December 31, 2021.

Non-GAAP Financial Measures



This information contains certain non-GAAP financial measures. A non-GAAP
financial measure is defined as a numerical measure of a company's financial
performance that excludes or includes amounts so as to be different than the
most directly comparable measure calculated and presented in accordance with
generally accepted accounting principles ("GAAP") in the statements of income,
balance sheets or statements of cash flows of the company. We have provided a
reconciliation of non­GAAP financial measures to the most directly comparable
financial measure in the accompanying tables. We have also provided discussion
of the reasons we believe that presentation of the non-GAAP financial measures
provide useful information to investors, as well as any additional ways in which
we use the non-GAAP financial measures. The non-GAAP financial measures used in
the following discussions are value added revenue ("VAR"), adjusted earnings
before interest, taxes, depreciation and amortization ("Adjusted EBITDA") and
ratios related thereto. These measures are presented because management uses
this information to monitor and evaluate financial results and trends and
believes this information to also be useful for investors.

In the discussion of operating results below, we refer to certain items as
"non-run-rate items." For purposes of such discussion, non-run-rate items are
items that, while they may recur from period-to-period: (i) are particularly
material to results; (ii) affect costs primarily as a result of external market
factors; and (iii) may not recur in future periods if the same level of
underlying performance were to occur. Non-run-rate items are part of our
business and operating environment but are worthy of being highlighted for the
benefit of readers of our financial statements. Our intent is to allow users of
the financial statements to consider our results both in light of and separately
from such items. For a reconciliation of Adjusted EBITDA to Net loss, see below
in "Results of Operations - Selected Operational and Financial Information."
Reconciliations of certain forward-looking non-GAAP financial measures to
comparable GAAP measures are not provided because certain items required for
such reconciliations are outside of our control and/or cannot be reasonably
predicted or provided without unreasonable effort.

Metal Pricing Policies



A fundamental part of our business model is to remain neutral to the impact from
fluctuations in the market price for aluminum and certain alloys, thereby
earning profit predominately from the conversion of aluminum into
semi-fabricated mill products. We refer to this as "metal price neutrality." We
purchase primary and scrap, or recycled, aluminum, our main raw material, and
alloys at prices that fluctuate on a monthly basis, and our pricing policies
generally allow us to pass the underlying cost of aluminum and alloys

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through to our customers so that we remain neutral to metal pricing. However,
for some of our higher VAR products sold on a spot basis, competitive dynamics
may limit the amount and/or delay the timing of selling price increases to
recover our increased aluminum and alloy costs, resulting in a lag up to several
months during which we may be exposed to metal price risk. As a result, we can
experience an adverse impact when aluminum and alloy prices increase, and a
favorable impact to us when aluminum and alloy prices decline, as we and our
competitors tend to defer adjusting pricing unless market dynamics require such
in a declining metal cost environment. Additionally, we sometimes enter into
firm-price customer sales agreements that specify a firm underlying metal price
plus a conversion price. Spot sales with lagged aluminum and alloy price pass
through and firm-price sales agreements create price exposure for us, which we
mitigate through a hedging program with an objective to remain metal price
neutral.

Our pricing policies and hedging program are intended to significantly reduce or
eliminate the impact on our profitability of fluctuations in underlying price of
primary and scrap, or recycled, aluminum, our main raw material, and alloys so
that our earnings are predominantly associated with the conversion of aluminum
to semi­fabricated mill products. To allow users of our financial statements to
consider the impact of aluminum and alloy cost on our Net sales, we disclose Net
sales as well as VAR, which is Net sales less the Hedged Cost of Alloyed Metal.
As used in this discussion, "Hedged Cost of Alloyed Metal" is the cost of
aluminum at the average Midwest Transaction Price ("Midwest Price") plus the
cost of alloying elements and any realized gains and/or losses on settled hedges
related to the metal sold in the referenced period. The average Midwest Price of
aluminum reflects the primary aluminum supply/demand dynamics in North America.
For a reconciliation of VAR to Net sales, see below in "Results of Operations -
Selected Operational and Financial Information."

Business Overview



We manufacture and sell semi-fabricated specialty aluminum mill products for the
following end market applications: (i) aerospace and high strength ("Aero/HS
products"); (ii) aluminum beverage and food packaging ("Packaging"); (iii)
automotive ("Automotive Extrusions"); (iv) general engineering ("GE products");
and (v) other industrial ("Other products"). Our fabricated aluminum mill
products include flat-rolled (plate, sheet and coil), extruded (rod, bar,
hollows and shapes), drawn (rod, bar, pipe, tube and wire) and certain cast
aluminum products. The sophistication of our products is due to the metallurgy
and physical properties of the metal and the special characteristics that are
required for particular end uses. We strategically choose to serve technically
challenging applications for which we can deploy our core metallurgical and
process technology capabilities to produce highly engineered mill products with
differentiated characteristics that present opportunities for us to receive
premium pricing and to create long-term profitable growth.

With respect to the global market for flat-rolled aluminum mill products, our
focus is on heat treat plate and sheet for applications that require higher
strength and other desired product attributes that cannot be achieved by common
alloy rolled products. The primary end market applications of flat-rolled heat
treat plate and sheet, which are produced at our rolling mill in Spokane,
Washington ("Trentwood"), are Aero/HS products (which we sell globally) and
GE products (which we predominantly sell within North America). On March 31,
2021, with the completion of our acquisition of Alcoa Warrick LLC and certain
assets comprising the aluminum casting and rolling mill facility located in
Warrick County, Indiana (collectively, "Warrick"), we expanded our flat-rolled
aluminum products to include bare and coated aluminum coil for can stock
applications in the beverage and food packaging industry in North America. Our
Packaging products require demanding attributes and can be further processed to
include coating and slitting depending on customer specifications.

In the areas of aluminum extrusions, we focus on demanding Aero/HS products,
Automotive Extrusions and GE products that require high strength, machinability
or other specific properties where we can create and maintain a defensible
competitive position because of our technical expertise, strong production
capability and high product quality. Our 11 extrusion/drawing facilities, 10 of
which are in the United States and one of which is in Canada, serve primarily
North American demand for aerospace, automotive or general engineering
applications. Additionally, we have a facility in Columbia, New Jersey, that
focuses on multi-material advanced manufacturing methods and techniques, which
include multi-axis computer numerical control ("CNC") machining, additive
manufacturing ("3D Printing"), welding and fabrication for demanding aerospace
and defense, automotive, high tech and general industrial applications. Our
consolidated Net sales for the six months ended June 30, 2022 totaled $1.9
billion on 670.5 million pounds shipped from our facilities. We employed
approximately 4,015 people at June 30, 2022.

We have long-standing relationships with our customers, which consist primarily
of blue-chip companies including leading aerospace and automotive manufacturers,
tier one aerospace and automotive suppliers, food and beverage packaging
manufacturers and metal service centers. As of June 30, 2022, approximately 73%
of our shipments has been sold direct to manufacturers or tier one suppliers and
approximately 27% has been sold to metal service centers. In our served markets,
we seek to be the supplier of choice by pursuing "Best in Class" customer
satisfaction driven by quality, availability, service and delivery performance.
We believe we differentiate our product portfolio through our broad product
offering and our KaiserSelect® products, which are engineered and manufactured
to deliver enhanced product characteristics with improved consistency, so as to
result in better performance, lower waste and, in many cases, lower production
cost for our customers.

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Metal and Magnesium Supply Chain Issues



As we have previously discussed, Warrick has faced specific challenges with the
September 2021 force majeure declaration of its primary magnesium supplier, US
Magnesium, LLC ("US Mag"), which resulted in a significant reduction in
deliveries while we were also being impacted by the operational challenges Alcoa
Corporation was experiencing at its adjacent smelter, which supplies primary
aluminum to Warrick. In June 2022, US Mag deliveries unexpectedly stopped while
performance of the smelter also rapidly deteriorated, negatively impacting
Warrick's operating efficiency and financial performance. As a result of the
abrupt and unexpected decline in magnesium supply, on July 7, 2022, we declared
force majeure at our Warrick rolling mill due to the limited availability of
magnesium utilized in the production of our aluminum beverage and food packaging
products, reducing our ability to produce those products at the time. We are
continuing to diversify our magnesium supply chain and qualify additional
sources to replace all of the volume previously contracted by US Mag and
preparing to operate independently of Alcoa Corporation's smelter and power
plant, which supplies power to Warrick. See our "Outlook" discussion below for
additional details around anticipated production and delivery volumes resulting
from these supply chain issues.

Highlights of the quarter ended June 30, 2022 include:


  • Strong demand for GE products and Packaging;


  • Continued recovery in demand for Aero/HS products;


  • Higher pricing largely mitigating inflationary and commodity costs;


  • Continued increase in inflationary cost remains challenging;

• Incremental costs of approximately $17.0 million primarily related to

metal and magnesium supply chain issues; and

• Cash dividends and dividend equivalents of $0.77 per share or $12.6

million paid during the quarter ended June 30, 2022.

Results of Operations

Consolidated Results of Operations

Net Sales. Net sales totaled $954.2 million and $741.0 million for the quarters
ended June 30, 2022 and June 30, 2021, respectively, reflecting a 1.5 million
pound decrease in shipment volume and a $0.65/lb (30%) increase in average
realized sales price per pound. The shipment volume decrease reflected: (i) a
6.1 million pound (3%) decrease in Packaging, reflecting metal flow issues and
magnesium shortages that impacted our ability to ship product to customers and
(ii) a 3.6 million pound (55%) decrease in Other products, partially offset by:
(i) a 7.5 million pound (18%) increase in Aero/HS products, reflecting improved
pricing, continuing improvement in underling commercial aerospace shipments and
steady strength in defense and business jet related applications; (ii) a 0.4
million pound (2%) increase in Automotive Extrusions, which was relatively flat,
reflecting the continuing impact of the ongoing semiconductor shortage and other
supply chain disruptions in the automotive industry; and (iii) a 0.3 million
pound (0.4%) increase in GE products reflecting continued strong demand for our
products. The average realized sales price per pound reflected a $0.47/lb (37%)
increase in average Hedged Cost of Alloyed Metal price per pound and an $0.18/lb
(19%) increase in VAR per pound reflecting higher pricing and surcharges to
offset higher inflationary and commodity related costs. See the table in
"Selected Operational and Financial Information" below for further details.

Net sales totaled $1,903.0 million and $1,065.0 million for the six months ended
June 30, 2022 and June 30, 2021, respectively, reflecting a 197.0 million pound
(42%) increase in shipment volume and a $0.59/lb (26%) increase in average
realized sales price per pound. The shipment volume increase reflected: (i) a
168.6 million pound (91%) increase in Packaging reflecting a full six months of
shipments during 2022 as a result of our Warrick acquisition, which was
completed on March 31, 2021; (ii) a 16.9 million pound (22%) increase in Aero/HS
products reflecting continued strength in demand for our defense related
applications and improving demand for commercial aerospace as we continue to see
the recovery in air travel and higher shipments of new aircraft from both major
airframe producers; and (iii) a 16.7 million pound (11%) increase in GE products
reflecting continued strong underlying demand for semiconductor plate and
industrial and machine tools, partially offset by a 3.5 million pound (7%)
decrease in Automotive Extrusions driven by the shortage of semiconductors that
has impacted North American production levels. The average realized sales price
per pound reflected a $0.51/lb (42%) increase in average Hedged Cost of Alloyed
Metal price per pound and an $0.08/lb (8%) increase in VAR per pound reflecting
higher pricing and surcharges to offset higher inflationary and commodity
related costs. See the table in "Selected Operational and Financial Information"
below for further details.

Cost of Products Sold, Excluding Depreciation and Amortization and Other Items.
Cost of products sold, excluding depreciation and amortization and other items
for the quarter ended June 30, 2022 totaled $898.4 million, or 94% of Net sales,
compared to $673.3 million, or 91% of Net sales, for the quarter ended June 30,
2021. The increase of $225.1 million reflected: (i) a $154.9 million increase in
Hedged Cost of Alloyed Metal and (ii) a $70.2 million increase in net
manufacturing conversion and other costs. Of the

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$154.9 million increase in Hedged Cost of Alloyed Metal, $156.9 million was due
to higher hedged metal prices offset by $2.0 million due to lower shipment
volume, as discussed above in "Net Sales." The $70.2 million increase in net
manufacturing conversion and other costs reflected: (i) a $28.8 million increase
related to lower utilization of scrap, or recycled aluminum, and higher alloy
input costs per unit of production, which includes the majority of the US Mag
and Alcoa Corporation operational issues as discussed above in "Metal and
Magnesium Supply Chain Issues"; (ii) a $24.3 million increase in manufacturing
costs due to lower efficiencies and higher labor costs; (iii) $11.0 million of
higher benefits and overhead costs; and (iv) a $5.8 million increase in energy
costs. See "Selected Operational and Financial Information" below for a further
discussion of the comparative results of operations for the quarters ended
June 30, 2022 and June 30, 2021.

Cost of products sold, excluding depreciation and amortization and other items
for the six months ended June 30, 2022 totaled $1,764.3 million, or 93% of Net
sales, compared to $935.8 million, or 88% of Net sales, for the six months ended
June 30, 2021. The increase of $828.5 million reflected: (i) a $581.0 million
increase in Hedged Cost of Alloyed Metal and (ii) a $247.5 million increase in
net manufacturing conversion and other costs. Of the $581.0 million increase in
Hedged Cost of Alloyed Metal, $341.7 million was due to higher hedged metal
prices and $239.3 million was due to higher shipment volume, as discussed above
in "Net Sales." The $247.5 million increase in net manufacturing conversion and
other costs reflected: (i) a $139.7 million increase related to higher sales,
primarily due to a full six months of shipments during 2022 as a result of our
Warrick acquisition, which was completed on March 31, 2021; (ii) $59.3 million
of additional overhead associated with the increase in Packaging related volume,
as well as higher energy, freight and metal costs driven by inflation,
transportation bottlenecks and supply chain inefficiencies; and
(iii) $41.9 million of higher benefits and overhead costs. Principal factors
contributing to our inflationary pressures include supply chain disruptions,
labor shortages and geopolitical factors. See "Selected Operational and
Financial Information" below for a further discussion of the comparative results
of operations for the six months ended June 30, 2022 and June 30, 2021.

Selling, General, Administrative, Research and Development ("SG&A and R&D").
SG&A and R&D expense totaled $27.5 million and $30.9 million for the quarters
ended June 30, 2022 and June 30, 2021, respectively, and $57.7 million and
$62.7 million for six months ended June 30, 2022 and June 30, 2021,
respectively. The decrease during the quarter ended June 30, 2022 was primarily
due to a $3.5 million decrease in legal, consulting and outsourced services
expense primarily related to the winding down of services in conjunction with
the Warrick acquisition. The decrease for the six months ended June 30, 2022
compared with June 30, 2021 was due primarily to an $11.7 million decrease in
legal, consulting and outsourced services expense primarily related to the
winding down of services in conjunction with the Warrick acquisition, partially
offset by: (i) a $4.1 million increase due to the addition of Warrick operations
and (ii) a $3.0 million increase in salaries and benefits.

Restructuring Cost (Benefit). Restructuring cost (benefit) was a benefit of $0.1
million and $0.8 million for the quarter and six months ended June 30, 2021,
respectively, due to cost estimate revisions. We fulfilled all remaining
obligations under this restructuring plan as of December 31, 2021.

Other operating charges, net. Other operating charges, net, of $3.2 million for
the quarter and six months ended June 30, 2022 was primarily due to the
impairment of our favorable commodity contract intangible asset. See Note 1 of
Notes to Interim Consolidated Financial Statements included in this Report for
further details.

Interest Expense. See Note 5 of Notes to Interim Consolidated Financial Statements included in this Report for a discussion of our debt and credit facilities that were in effect during the quarters and six months ended June 30, 2022 and June 30, 2021 and interest expense capitalized as part of construction in progress.

Other Expense, Net. See Note 8 of Notes to Interim Consolidated Financial Statements included in this Report for details.

Income Tax Benefit. See Note 9 of Notes to Interim Consolidated Financial Statements included in this Report for disclosure regarding our income tax benefit.

Selected Operational and Financial Information



The following data should be read in conjunction with our consolidated financial
statements and the notes thereto included in Part I, Item 1. "Financial
Statements" of this Report. Interim results are not necessarily indicative of
those for a full year.

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The table below provides selected operational and financial information (in
millions of dollars):

                                              Quarter Ended June 30,            Six Months Ended June 30,
                                              2022              2021            2022               2021
Net loss                                   $     (13.8 )     $     (22.4 )   $      (5.7 )     $       (17.9 )
Interest expense                                  12.2              12.4            24.4                24.7
Other expense, net                                 3.7              36.6             5.3                37.0
Income tax benefit                                (4.1 )           (15.5 )          (0.8 )             (15.8 )
Depreciation and amortization                     27.1              25.8            54.6                39.3
Non-run-rate items:
Restructuring cost (benefit)                         -              (0.1 )             -                (0.8 )
Adjustments to plant-level LIFO1                   9.9              14.1            12.6                11.2
Mark-to-market loss on derivative
instruments2                                       2.9               0.4             1.9                 0.1
Non-cash asset impairment charge                   3.2                 -             3.2                   -
Environmental expenses3                            0.1                 -             0.1                   -
Acquisition (credits) costs4                      (0.1 )             7.4             0.5                18.4
Total non-run-rate items                          16.0              21.8            18.3                28.9
Adjusted EBITDA                            $      41.1       $      58.7     $      96.1       $        96.2

1 We manage our business on a monthly last-in, first-out ("LIFO") basis at each

plant, but report inventory externally on an annual LIFO basis in accordance

with GAAP on a consolidated basis. This line item represents the conversion

from GAAP LIFO applied on a consolidated basis to monthly LIFO applied on a

plant-by-plant basis. For the quarter and six months ended June 30, 2021,

this line item reflects a $7.8 million non-run-rate LIFO charge that resulted

from a purchase accounting adjustment to step-up Warrick's inventory to fair

value.

2 Mark-to-market loss on derivative instruments represented: (i) for 2022 and

2021, the loss on non-designated commodity hedges and (ii) for 2021, the

reversal of mark-to-market (gain) loss on commodity hedges entered into prior

to the adoption of Accounting Standards Update ("ASU") No. 2017-12,

Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for


    Hedging Activities ("ASU 2017-12") and settled in the periods presented
    above. Adjusted EBITDA reflects the realized gains and losses related to
    these derivatives upon settlement.


3   Non-run-rate environmental expenses are related to legacy activities at

operating facilities prior to July 6, 2006. See Note 6 of Notes to Interim

Consolidated Financial Statements included in this Report for additional

information relating to the environmental expenses.

4 Acquisition (credits) costs are non-run-rate acquisition-related transaction

items, which include professional fees, as well as non­cash hedging charges

recorded in connection with our Warrick acquisition.




Adjusted EBITDA for the quarter ended June 30, 2022 was $17.6 million lower than
Adjusted EBITDA for the quarter ended June 30, 2021. Adjusted EBITDA for the
quarter ended June 30, 2022 was impacted by approximately $14.0 million of
incremental cost related to supply chain issues in connection with the
operational challenges Alcoa Corporation was experiencing at its adjacent
smelter, which supplies primary aluminum to Warrick, and US Mag supply chain
disruptions as discussed above in "Metal and Magnesium Supply Chain Issues." In
addition, the current quarter was impacted by higher major maintenance,
manufacturing, energy and employee related cost, which were partially offset by
improved pricing and commodity and freight surcharges as discussed above in
"Consolidated Results of Operations."

Adjusted EBITDA for the six months ended June 30, 2022 was $0.1 million lower
than Adjusted EBITDA for the six months ended June 30, 2021. Adjusted EBITDA for
the six months ended June 30, 2022 reflected the full six months of our
packaging operations which were offset by: (i) approximately $20.0 million of
incremental cost, primarily driven by the metal and magnesium supply chain
issues and (ii) $6.0 million of higher than normal international freight cost at
our Trentwood facility. In addition, we had inflation driven higher energy,
manufacturing and employee related cost that were not fully recovered through
pricing increases.

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The following table provides our shipment and VAR information (in millions of dollars, except shipments and VAR per pound) by end market applications:



                                     Quarter Ended June 30,                            Six Months Ended June 30,
                                  2022                     2021                      2022                      2021
Aero/HS Products:
Shipments (mmlbs)                 48.3                     40.8                      93.8                      76.9
                             $         $ / lb         $         $ / lb          $          $ / lb          $         $ / lb
Net sales                 $  175.4     $  3.63     $  133.9     $  3.28     $    352.0     $  3.75     $   245.6     $  3.19
Less: Hedged Cost of
Alloyed Metal                (78.7 )     (1.63 )      (53.8 )     (1.32 )       (160.0 )     (1.70 )       (94.7 )     (1.23 )
VAR                       $   96.7     $  2.00     $   80.1     $  1.96     $    192.0     $  2.05     $   150.9     $  1.96

Packaging:
Shipments (mmlbs)                179.8                    185.9                     354.5                      185.9
                             $         $ / lb         $         $ / lb          $          $ / lb          $         $ / lb
Net sales                 $  450.7     $  2.51     $  358.8     $  1.93     $    898.7     $  2.54     $   358.8     $  1.93
Less: Hedged Cost of
Alloyed Metal               (297.0 )     (1.66 )     (226.9 )     (1.22 )       (598.8 )     (1.69 )      (226.9 )     (1.22 )
VAR                       $  153.7     $  0.85     $  131.9     $  0.71     $    299.9     $  0.85     $   131.9     $  0.71

Automotive Extrusions:
Shipments (mmlbs)                 24.0                     23.6                      47.3                      50.8
                             $         $ / lb         $         $ / lb          $          $ / lb          $         $ / lb
Net sales                 $   71.6     $  2.98     $   55.6     $  2.36     $    135.4     $  2.86     $   113.2     $  2.23
Less: Hedged Cost of
Alloyed Metal                (45.3 )     (1.88 )      (30.8 )     (1.31 )        (85.5 )     (1.81 )       (60.7 )     (1.20 )
VAR                       $   26.3     $  1.10     $   24.8     $  1.05     $     49.9     $  1.05     $    52.5     $  1.03

GE Products:
Shipments (mmlbs)                 80.0                     79.7                     167.6                      150.9
                             $         $ / lb         $         $ / lb          $          $ / lb          $         $ / lb
Net sales                 $  247.7     $  3.10     $  180.9     $  2.27     $    498.9     $  2.98     $   331.3     $  2.20
Less: Hedged Cost of
Alloyed Metal               (151.5 )     (1.90 )     (103.7 )     (1.30 )       (300.6 )     (1.80 )      (182.6 )     (1.21 )
VAR                       $   96.2     $  1.20     $   77.2     $  0.97     $    198.3     $  1.18     $   148.7     $  0.99

Other Products:
Shipments (mmlbs)                 3.0                      6.6                       7.3                        9.0
                             $         $ / lb         $         $ / lb          $          $ / lb          $         $ / lb
Net sales                 $    8.8     $  2.93     $   11.8     $  1.79     $     18.0     $  2.47     $    16.1     $  1.79
Less: Hedged Cost of
Alloyed Metal                 (5.4 )     (1.80 )       (7.9 )     (1.20 )        (11.4 )     (1.57 )       (10.5 )     (1.17 )
VAR                       $    3.4     $  1.13     $    3.9     $  0.59     $      6.6     $  0.90     $     5.6     $  0.62

Total:
Shipments (mmlbs)                335.1                    336.6                     670.5                      473.5
                             $         $ / lb         $         $ / lb          $          $ / lb          $         $ / lb
Net sales                 $  954.2     $  2.85     $  741.0     $  2.20     $  1,903.0     $  2.84     $ 1,065.0     $  2.25
Less: Hedged Cost of
Alloyed Metal               (577.9 )     (1.73 )     (423.1 )     (1.26 )     (1,156.3 )     (1.73 )      (575.4 )     (1.22 )
VAR                       $  376.3     $  1.12     $  317.9     $  0.94     $    746.7     $  1.11     $   489.6     $  1.03


Outlook

Although our Warrick rolling mill's supply chain issues remain challenging, we
continue to aggressively address these issues as we transform Warrick into a
highly efficient and independent operation, while executing on our strategic
plans for further growth.

As discussed above in "Metal and Magnesium Supply Chain Issues," we have
adjusted our production levels at Warrick based on the amount of magnesium
currently available and otherwise scheduled for delivery from suppliers other
than US Mag and are working with our Warrick customers to minimize the impact of
supply chain issues on planned deliveries. At the time of our July 7, 2022 press
release announcing our declaration of force majeure, we noted that we
anticipated Warrick's production and deliveries to

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be reduced by 30% to 40% in the month of July 2022 and approximately 50% during
the remainder of the third quarter ended September 30, 2022, in each case based
on then contracted deliveries of magnesium and assuming no further deliveries
from US Mag. Since that time, US Mag delivered additional magnesium and we
continue to identify and qualify additional supplies and suppliers of magnesium.
As such, subject to the successful completion of our qualification process, we
believe shipments will be higher than the levels in our previous announcement,
which will then allow us to return to full production sooner than previously
anticipated.

Given the current environment and the supply chain issues we experienced during
the first half of 2022, we will not achieve the Adjusted EBITDA margins
(Adjusted EBITDA as a percentage of VAR) of 17% to 20% as we had previously
anticipated. However, as we look forward and continue executing on our
strategies and resolve these supply chain issues, our business is positioned to
perform at these levels and above.

Notwithstanding these near-term challenges, longer-term, our strategy remains
unchanged. We remain well positioned for continued long-term growth with a
diversified portfolio and strong secular growth trends in each of our served end
markets. The fundamentals of our Aero/HS products, Packaging, Automotive
Extrusions and GE products end markets are solid and as we continue to execute
on our strategic initiatives we will continue to deliver long-term value to all
of our stakeholders.

Liquidity and Capital Resources

Summary

The following table summarizes our liquidity (in millions of dollars):

As of December


                                                     As of June 30, 2022          31, 2021
Available cash and cash equivalents                 $               235.2     $           303.2
Borrowing availability under Revolving Credit
Facility, net of letters of credit1                                 551.4                 367.3
Total liquidity                                     $               786.6     $           670.5

1 In April 2022, we executed Amendment No. 3 to our revolving credit facility

with Wells Fargo Bank, National Association, as administrative agent, and the

other financial institutions party thereto (as amended, the "Revolving Credit

Facility") to: (i) increase the commitment to $575.0 million; (ii) extend the

maturity date; (iii) update our borrowing base; and (iv) update relevant

benchmark provisions to reference the Secured Overnight Financing Rate

("SOFR"). See Note 5 of Notes to Interim Consolidated Financial Statements

included in this Report for further details. Borrowing availability under the

Revolving Credit Facility was determined by a borrowing base calculated as of

June 30, 2022 and December 31, 2021 using the terms of the Revolving Credit

Facility in effect as of those dates.

We place our cash in bank deposits and money market funds with high credit quality financial institutions. Cash equivalents primarily consist of money market funds, which are highly liquid.

See Note 11 of Notes to Interim Consolidated Financial Statements included in this Report for information regarding restricted cash at June 30, 2022.

There were no borrowings under our Revolving Credit Facility as of both June 30, 2022 and December 31, 2021. See Note 5 of Notes to Interim Consolidated Financial Statements included in this Report.

Cash Flows

The following table summarizes our cash flows from operating, investing and financing activities (in millions of dollars):



                                       Six Months Ended June 30,
                                        2022               2021
Total cash provided by (used in):
Operating activities                $        7.0       $         4.9
Investing activities                $      (44.8 )     $      (635.9 )
Financing activities                $      (29.8 )     $       133.6




Cash provided by operating activities for the six months ended June 30, 2022
reflected results of business activity described above within "Consolidated
Results of Operations," as well as the following working capital changes: (i) an
increase in inventory of $64.0 million due primarily to higher inventory pounds
to satisfy increased demand, longer lead times, the planned multi-week outage

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at our Trentwood facility to refurbish our heavy gauge stretcher, as well as a
higher per pound inventory cost; (ii) an increase in accounts payable of $61.8
million, the majority of which was driven by an increase in inventory as noted
above; and (iii) an increase in contract assets of $30.7 million due primarily
to the timing and mix of sales and an increase in metal price.

Cash provided by operating activities for the six months ended June 30, 2021
reflected: (i) an increase in trade and other receivables of $130.5 million, the
majority of which was driven by Warrick receivables added during the quarter
ended June 30, 2021 and the remainder of which was due to the timing and mix of
sales with extended terms and an increase in metal price; (ii) an increase in
accounts payable of $115.5 million, the majority of which was driven by Warrick
payables added during the quarter ended June 30, 2021 and the remainder of which
was driven by the volume of metal purchases; and (iii) an increase in inventory
of $21.2 million due primarily to higher inventory pounds to satisfy increased
demand.

See Statements of Consolidated Cash Flows included in this Report for further
details on our cash flows from operating, investing and financing activities for
the six months ended June 30, 2022 and June 30, 2021.

Sources of Liquidity



We believe our available cash and cash equivalents, borrowing availability under
the Revolving Credit Facility and funds generated from operations are our most
significant sources of liquidity, and that our Revolving Credit Facility and
unsecured notes have covenants that allow us to operate our business with
limited restrictions and significant flexibility for the foreseeable future.
While we believe these sources will be sufficient to finance our working capital
requirements, planned capital expenditures, investments, debt service
obligations and other cash requirements for at least the next 12 months, and
while we also believe that alternative sources of liquidity will remain
available in the event we seek to add liquidity for opportunistic or other
reasons in the future, our ability to fund such cash requirements will depend
upon our future operating performance (which will be affected by prevailing
economic conditions) and financial, business and other factors, some of which
are beyond our control.

We do not believe that covenants contained in the Revolving Credit Facility are
reasonably likely to limit our ability to raise additional debt or equity should
we choose to do so during the next 12 months, nor do we believe it is likely
that during the next 12 months we will trigger the availability threshold that
would require measuring and maintaining a fixed charge coverage ratio. During
the six months ended June 30, 2022 and as of July 21, 2022, there were no
borrowings under the Revolving Credit Facility.

See Note 9 of Notes to Consolidated Financial Statements included in our Annual
Report on Form 10-K for the year ended December 31, 2021 for a description of
our Revolving Credit Facility, as well as Note 5 of Notes to Interim
Consolidated Financial Statements included in this Report for further details
regarding Amendment No. 3 of our Revolving Credit Facility, which we executed in
April 2022.

We engage in certain customer-based supply chain financing programs to
accelerate the receipt of payment for outstanding accounts receivable from
certain customers. Costs of these programs are typically reimbursed to us by the
customer. Receivables transferred under these customer-based supply chain
financing programs generally meet the requirements to be accounted for as sales
resulting in the derecognition of such receivables from our consolidated balance
sheets. Receivables involved with these customer­based supply chain finance
programs for the quarter ended June 30, 2022 constituted approximately 51% of
our net sales. See Note 1 of Notes to Interim Consolidated Financial Statements
included in this Report for further details with respect to these supply chain
financing programs.

Debt

See Note 9 of Notes to Consolidated Financial Statements included in Part II,
Item 8. "Financial Statements and Supplementary Data" in our Annual Report on
Form 10-K for the year ended December 31, 2021 for mandatory principal and cash
interest payments on the outstanding borrowings.

We do not believe that covenants in the indentures governing the 4.50% Senior
Notes due 2031 ("4.50% Senior Notes") and 4.625% Senior Notes due 2028 ("4.625%
Senior Notes") are reasonably likely to limit our ability to obtain additional
debt or equity financing should we choose to do so during the next 12 months.

Capital Expenditures and Investments



We strive to strengthen our competitive position across our end markets through
strategic capital investment. Significant investments over the past decade have
positioned us well with increased capacity and expanded manufacturing
capabilities while more recent capital projects have focused on further
enhancing manufacturing cost efficiency, improving product quality and promoting

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operational security, which we believe are critical to maintaining and
strengthening our position in an increasingly competitive market environment. A
significant portion of our capital spending over the past several years related
to the modernization project at our Trentwood facility, which focused on
equipment upgrades throughout the process flow to reduce conversion costs,
increase efficiency and further improve our competitive cost position on all
products produced at our Trentwood facility. In addition, a significant portion
of the investment also focused on modernizing legacy equipment and the process
flow for thin gauge plate to achieve KaiserSelect® quality enhancements for
these Aero/HS and GE products. These improvements have allowed us to gain
incremental manufacturing capacity to enable future sales growth.

Our capital investment plans remain focused on supporting demand growth through
capacity expansion, sustaining our operations, enhancing product quality and
increasing operating efficiencies. We anticipate total capital spending in 2022
of approximately $180.0 million to $200.0 million, of which approximately 60% of
total spending will be focused on growth initiatives, primarily reflecting
investment in the new roll coat line at Warrick and modest spending related to
the Trentwood facility expansion project. In addition, we have prepared for a
multiple week outage early in the third quarter 2022 to refurbish the large
plate stretcher at our Trentwood facility. The investment of approximately $30.0
million is a highly efficient use of capital that will allow us to defer the
$145.0 million purchase for a new stretcher planned prior to the COVID-19
pandemic. We will continue to deploy capital thoughtfully to ensure that
investment decisions align with demand expectations in order to maximize the
earnings potential of the business and maintain financial strength and
flexibility.

Capital investments will be funded using cash generated from operations,
available cash and cash equivalents, borrowings under the Revolving Credit
Facility and/or other third-party financing arrangements. The level of
anticipated capital expenditures may be adjusted from time-to-time depending on
our business plans, our price outlook for fabricated aluminum products, our
ability to maintain adequate liquidity and other factors. No assurance can be
provided as to the timing of any such expenditures or the operational benefits
expected therefrom.

Dividends

We have consistently paid a quarterly cash dividend since the second quarter of
2007 to holders of our common stock, including holders of restricted stock, and
have increased the dividend in each year since 2011. Nevertheless, as in the
past, the future declaration and payment of dividends, if any, will be at the
discretion of our Board of Directors and will depend on a number of factors,
including our financial and operating results, financial position and
anticipated cash requirements and contractual restrictions under our Revolving
Credit Facility, the indenture for our 4.50% Senior Notes and 4.625% Senior
Notes or other indebtedness we may incur in the future. We can give no assurance
that dividends will be declared and paid in the future. See Note 9 of Notes to
Consolidated Financial Statements included in our Annual Report on Form 10-K for
the year ended December 31, 2021 for additional information about restrictions
on dividend payments contained in the Revolving Credit Facility and in the
indenture for our unsecured senior notes.

We also pay quarterly dividend equivalents to the holders of certain restricted
stock units. Holders of performance shares are not paid a quarterly dividend
equivalent, but instead are entitled to receive, in connection with the issuance
of underlying shares of common stock for performance shares that ultimately
vest, a one-time payment equal to the dividends such holder would have received
if the number of such shares of common stock so issued had been held of record
by such holder from the date of grant of such performance shares through the
date of such issuance.

See our Statements of Consolidated Stockholders' Equity and Note 13 of Notes to
Interim Consolidated Financial Statements included in this Report for
information regarding dividends paid during the quarters ended June 30, 2022 and
June 30, 2021, and declared subsequent to June 30, 2022.

Repurchases of Common Stock

We suspended share repurchases as of March 2020. We will continue to assess share repurchases as a part of our capital allocation priorities and strategic investment opportunities identified to support further growth in our business.



See our Statements of Consolidated Stockholders' Equity included in this Report
for information regarding: (i) repurchases of common stock during the quarters
ended June 30, 2022 and June 30, 2021; (ii) the amount authorized and available
for future repurchases of common stock under our stock repurchase program; and
(iii) minimum statutory tax withholding obligations arising during the quarters
ended June 30, 2022 and June 30, 2021 in connection with the vesting of
non-vested shares, restricted stock units and performance shares.

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Environmental Commitments and Contingencies

See Note 6 of Notes to Interim Consolidated Financial Statements included in this Report for information regarding our environmental commitments and contingencies.

Contractual Obligations, Commercial Commitments and Off-Balance Sheet Arrangements

During the six months ended June 30, 2022, we granted additional stock-based awards to executive officers and certain key employees under our equity incentive plan. Additional awards are expected to be made in future years.



Commitment fees on our Revolving Credit Facility increased due to the
incremental $200.0 million of borrowing capacity associated with Amendment No. 3
of our Revolving Credit Facility. See Note 5 of Notes to Interim Consolidated
Financial Statements included in this Report.

Except as otherwise disclosed in this Report, there has been no material change
in our contractual obligations, commercial commitments or off-balance sheet
arrangements other than in the ordinary course of business since December 31,
2021.

Critical Accounting Estimates and Policies



Our consolidated financial statements are prepared in accordance with GAAP. In
connection with the preparation of our financial statements, we are required to
make assumptions and estimates about future events and apply judgments that
affect the reported amounts of assets, liabilities, revenue and expenses and the
related disclosures. We base our assumptions, estimates and judgments on
historical experience, current trends and other factors that management believes
to be relevant at the time our consolidated financial statements are prepared.
On a regular basis, management reviews the accounting policies, assumptions,
estimates and judgments to ensure that our financial statements are presented
fairly and in accordance with GAAP. However, because future events and their
effects cannot be determined with certainty, actual results could differ from
our assumptions and estimates and such differences could be material.

Our significant accounting policies are discussed in Note 1 of Notes to
Consolidated Financial Statements included in our Annual Report on Form 10-K for
the year ended December 31, 2021. We discuss our critical accounting estimates
in Part II, Item 7. "Management's Discussion and Analysis of Financial Condition
and Results of Operations" of our Annual Report on Form 10­K for the year ended
December 31, 2021.

There have been no material changes in our critical accounting estimates and policies since December 31, 2021.

New Accounting Pronouncements



For a discussion of recently adopted and recently issued but not yet adopted
accounting pronouncements, see "Adoption of New Accounting Pronouncements" in
Note 1 of Notes to Interim Consolidated Financial Statements included in this
Report.

Available Information

Our website is located at www.kaiseraluminum.com. The website includes a section
for investor relations under which we provide notifications of news or
announcements regarding our financial performance, including Securities and
Exchange Commission ("SEC") filings, investor events and press and earnings
releases. In addition, all Kaiser Aluminum Corporation filings submitted to the
SEC, including our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K and Proxy Statements for our annual meeting of
stockholders, as well as other Kaiser Aluminum Corporation reports and
statements, are available on the SEC's web site at www.sec.gov. Such filings are
also available for download free of charge on our website. In addition, we
provide and archive on our website webcasts of our quarterly earnings calls and
certain events in which management participates or hosts with members of the
investment community and related investor presentations. The contents of the
website are not intended to be incorporated by reference into this Report or any
other report or document filed by us, and any reference to the websites are
intended to be inactive textual references only.

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