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KAISER ALUMINUM Kaiser Aluminum Corporation Reports Third Quarter and Nine Months 2021 Financial Results October 20 , 2021 Third Quarter 2021 Highlights : o Net Sales $ 751 Million ; Value Added Revenue $ 305 Million o Net Loss $ 2 Million ; Net Loss per Diluted Share $ 0.14 o Adjusted Net Income $ 9 Million ; Adjusted Earnings per Diluted Share $ 0.57 o Adjusted EBITDA $ 50 Million ; Adjusted EBITDA Margin 16.5 % o End Market Demand Remains Robust o Supply Chain Disruptions , Labor Constraints , Higher Input Costs Impacted Results o Warrick Integration and Capital Investment Proceeding as Planned Nine Months 2021 Highlights : o Net Sales $ 1,816 Million ; Value Added Revenue $ 795 Million o Net Loss $ 20 Million ; Net Loss per Diluted Share $ 1.28 Includes Pre - tax Charges of $ 36 Million or $ 1.73 per Diluted Share , After - Tax , Related to Senior Notes Refinancing o Adjusted Net Income $ 35 Million ; Adjusted Earnings per Diluted Share $ 2.21 o Adjusted EBITDA $ 147 Million ; Adjusted EBITDA Margin 18.4 % FOOTHILL RANCH , Calif . , Oct. 20 , 2021 ( GLOBE NEWSWIRE ) -- 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 third quarter and nine months 2021 results . Third Quarter 2021 Management Summary " Results for the third quarter 2021 reflected both strong end market demand and the impact of supply chain disruptions , labor constraints and inflationary cost pressures , " said Keith A. Harvey , President and Chief Executive Officer . " The integration of the Warrick packaging operation is proceeding as planned and continues to demonstrate strong strategic growth opportunities as demand for our applications continues to increase . Demand for our general engineering end market applications remains robust due to restocking in the service center supply chain , reshoring and strength of our Kaiser Select® products . Recovery in demand for our commercial aerospace applications is progressing as anticipated and demand for our defense related applications remains strong . However , the ongoing shortage of semiconductor chips has significantly impacted North American light vehicle production , further delaying the anticipated recovery of our automotive business . " Although we had noted some inflationary costs pressures from rising freight , labor and material costs in the second quarter , during the third quarter conditions became increasingly challenging . In particular , continued constraints on labor availability , rapidly rising material and inflationary costs and supply chain challenges reduced the efficiency in our facilities and shipments resulting in an approximately $ 13 million impact to adjusted EBITDA . These costs partially offset by approximately $ 5 million of lower corporate overhead , incentive , and other costs led to further compression on adjusted EBITDA margin of approximately 200 basis points compared to the second quarter 2021 . " Our operations and commercial teams have been working on mitigating the impact of these factors , and we are aggressively passing through additional costs in our transactional business through price increases and to our contract customers through provisions included in our supply agreements . Where our agreements provide a pathway to address certain higher costs through price increases , there is often a lag affect that can impact the timing of when these price increases become effective . With respect to labor , we have significantly improved our headcount , enabling an increase in output and efficiencies in our operations by late in the third quarter . We continue to work with our vendors and customers to minimize disruptions in our supply channels to stabilize costs and ensure supply , " stated Mr. Harvey . Outlook ' Value added revenue for the fourth quarter 2021 is anticipated to be up low single digits from the third quarter with adjusted EBITDA margin to remain similar to the third quarter . While our end market demand remains positive , we anticipate cost issues and supply chain disruptions will continue during the quarter . In addition , the most recent industry wide disruptions in the magnesium and silicon markets and resulting supply demand imbalances are continuing to evolve and remain uncertain at this time . Although our outlook contemplates the anticipated impact to our costs and operations , the situation is fluid and could further impact our fourth quarter results , " said Mr. Harvey . " Longer - term , our strategy remains unchanged , and we are well positioned for continued long - term growth with a diversified portfolio and strong secular growth trends in each of our served end markets . Notwithstanding near - term challenges , the fundamentals of our aerospace , automotive and general engineering end markets are solid and we are increasingly optimistic in our ability to deliver significant margin expansion and long - term profitability for our packaging business where we have a significant market position . We remain confident around the timing of the recovery in commercial aerospace and we are optimistic that as semiconductor chip shortages are alleviated , automotive production will ramp back up and our