FOOTHILL RANCH - Kaiser Aluminum Corporation (NASDAQ: KALU), a leading producer of semi-fabricated specialty aluminum products, serving customers worldwide with highly-engineered solutions for aerospace and high-strength, packaging, general engineering, custom automotive and other industrial applications, today announced fourth quarter and full year 2021 results.

'This past year was transformational for the company, although one with a unique set of operational challenges,' said Keith A. Harvey, President and Chief Executive Officer. 'As we look ahead, we are confident in the processes and countermeasures we have put in place to address the significant challenges experienced in 2021, setting the stage for stronger performance in 2022. We also achieved a number of major milestones that served to strengthen the strategic positioning of our company as we continue to manage our business for long-term growth and profitability, including our strategic acquisition of the Warrick rolling mill, providing non-cyclic end market diversification of our portfolio and re-entry into the resurging North American aluminum packaging market. With confidence in the continued strength of our markets and the expected long-term growth in our businesses, along with our commitment to continue creating value for our shareholders, in early 2022 we increased our quarterly dividend 7.0% to $0.77 per share, an incremental increase from the 7.5% increase in early 2021.'

2021 Management Summary

Demand across the company's end markets was mixed creating inefficiencies as the company adjusted to changing market conditions. While demand for general engineering and packaging applications remained strong, demand for automotive applications was muted throughout the year due to continued semiconductor chip shortages that significantly limited North American auto production. Recovery in demand for commercial aerospace applications continued to progress as anticipated but remained pressured, while demand for business jet and defense related applications remained strong. The company's financial results for the full year 2021 reflected the impact of the demand environment, combined with rapidly rising costs, significant supply chain issues, labor constraints, continued market disruptions related to COVID-19, the declaration of force majeure by one of the company's largest magnesium suppliers, and the complex integration of the Warrick acquisition.

The company's commercial teams have been successful passing through price increases and instituting contained metals and commodity surcharges to offset the majority of higher materials costs. Operating efficiencies across all facilities have begun to improve and the supply chain issues experienced during most of the year have either been mitigated, resolved or addressed, with the exception of challenges the company continues to work through with its major magnesium supplier and metal supply to its Warrick facility.

2022 Outlook

The company is well-positioned for continued long-term growth with a diversified portfolio and strong secular growth trends in each of its served end markets. Notwithstanding near-term challenges, the fundamentals of aerospace, automotive and general engineering end markets are solid, and the company expects to deliver significant margin expansion to further enhance long-term profitability for the packaging business. The company remains confident around the timing of the recovery in commercial aerospace, and is optimistic that as semiconductor chip shortages are alleviated, automotive production will ramp back up and program launches will resume. The company also expects costs and operating efficiencies will continue to improve as its magnesium supply chain challenges and Warrick's metal supply issues are resolved.

For the full year 2022, the company anticipates total value added revenue to be up 20% to 25% year-over-year due to further strengthening in demand for its products across all major markets and the benefit of a full year of the packaging operations. Consolidated adjusted EBITDA margin is expected to improve to 17% to 20% for the full year 2022, strengthening through the year, as supply chain issues are resolved, operations and efficiencies improve, costs normalize and the Warrick integration process is completed.

The company's capital investment plans remain focused on supporting demand growth through capacity expansion, sustaining its operations, enhancing product quality and increasing operating efficiencies. The company anticipates total capital investment in 2022 will be approximately $200 million, of which approximately 60% is focused on growth initiatives, primarily reflecting investment in the new roll coat line at the Warrick facility.

Forward-Looking Statements

This press release contains statements which constitute 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and assumptions of management based on information available to it at the time such statements are made. Kaiser Aluminum cautions that any forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may vary materially from those in the forward-looking statements as a result of various factors. These factors include: (a) 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; (b) general economic and business conditions, including the impact of the global outbreak of Coronavirus Disease 2019 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 the Company serves; (c) the Company's ability to participate in mature and anticipated new automotive programs expected to launch in the future and successfully launch new automotive programs; (d) changes or shifts in defense spending due to competing national priorities; (e) pricing, market conditions and the Company's ability to effectively execute its commercial and labor strategies, pass through cost increases, including the institution of surcharges, and flex costs in response to changing economic conditions; (f) developments in technology; (g) the impact of the Company's future earnings, cash flows, financial condition, capital requirements and other factors on its financial strength and flexibility; (h) new or modified statutory or regulatory requirements; (i) the successful integration of the acquired operations and technologies continue to drive innovative solutions and further advance its capabilities, (j) the completion of the audit of the Company's financial statements for the year ended December 31, 2021 and (k) other risk factors summarized in the Company's reports filed with the Securities and Exchange Commission, including, when filed, the Company's Form 10-K for the year ended December 31, 2021. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

Contact:

Melinda C. Ellsworth

Tel: (949) 614-1757

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