Kaiser Aluminum Corporation announced net income of USD 6 million and earnings per diluted share of USD 0.29 for the Q3 ended September 30th 2010 compared to USD 23 million and earnings per diluted share of USD 1.14 for the quarter ended September 30th 2009.
Both periods included pre tax, non run rate items including non cash mark to market gains on derivative positions of approximately USD 15 million in the Q3 2010 and USD 27 million in the Q3 of 2009 and an increase in the environmental accrual of USD 14 million in the Q3 of 2010. Excluding the impact of pre tax, non run rate items adjusted net income was USD 6 million or USD 0.32 earnings per diluted share for the Q3 of 2010 compared to adjusted net income and earnings per diluted share of USD 6 million and USD 0.27 respectively for the prior year quarter.
For the nine months ended September 30th 2010, reported net income was USD 14 million or USD 0.74 of earnings per diluted share compared to USD 46 million or USD 2.31 million per diluted share in the prior year period. Adjusting for pre tax, non run rate and predominantly non cash items earnings per diluted share for the 9 months ended September 30th 2010 improved to USD 1.47 from USD 1.39 for the prior year period.
Mr Jack A Hockema president, CEO and chairman of Kaiser Aluminum said that "Consistent with our outlook, market conditions in the third quarter remained similar to the first half of 2010. Q3 operating results reflected normal seasonal weakness for our general engineering applications and higher costs associated with planned major maintenance projects. Our quarterly results were further impacted by short term manufacturing inefficiencies brought on by lower volume, production delays and continued ramp-up of the new Kalamazoo extrusion facility. On a comparative basis, adjusted operating income for our Fabricated Products business increased 15% from the prior year quarter and 25% year to date. The increase reflects higher demand levels and improvements in manufacturing cost efficiencies across our platform."
He said that we are very encouraged by the progress we've made at our new Kalamazoo facility. The product quality capability has exceeded our high expectations. When fully operational, this facility will provide a significant improvement in our competitive position. We are also very excited about the recently announced acquisition of the Nichols Wire facility and the pending acquisition of the Alexco assets. These acquisitions further strengthen our platform and will drive additional growth by providing product line extensions and capabilities to more broadly meet the needs of our aerospace and general engineering served market segments.