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Court affirms Kaiser Aluminum reorganization plan Friday May 12, 9:58 am ET
NEW YORK (Reuters) - Bankrupt Kaiser Aluminum Corp. on Friday said a U.S. District Court affirmed a federal bankruptcy court's approval of its reorganization plans. The company said it plans to emerge from Chapter 11 bankruptcy protection in the second or third quarter of 2006.
"We are now approaching the finish line of a long and complex process," said Jack Hockema, president and CEO of Kaiser Aluminum.
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Kaiser Aluminum and Boeing Reach Long-Term Agreement to Supply Heavy Gauge Aluminum Plate for Commercial Aircraft
FOOTHILL RANCH, Calif. – December 19, 2005 – Kaiser Aluminum today announced the signing of a new long-term contract with Boeing to supply heavy gauge aluminum plate for use in Boeing commercial aircraft products. The multi-year contract is expected to significantly increase the amount of Kaiser Aluminum fabricated products used by Boeing produced at Kaiser’s Trentwood, Washington rolling mill. “
Kaiser Aluminum and Boeing have a long history of partnership and this agreement further solidifies the long-term relationship between the two companies,” said Jack A. Hockema, president and chief executive officer, Kaiser Aluminum. “We are witnessing a significantly increasing need for Kaiser’s high-quality aluminum products in aerospace manufacturing. In response, we’re stepping up our commitment to meet our customers’ need for high-quality aluminum sheet and plate products.”
Hockema added, “Kaiser and Boeing also share a long history as major employers in the state of Washington and this agreement was made possible by the previously announced, planned expansion of our Trentwood facility near Spokane.”
Kaiser Aluminum recently announced a $75 million capital investment to expand its Trentwood facility including the addition of a state-of-the-art heavy gauge stretcher, horizontal heat treat furnaces and other ancillary equipment, such as an ultrasonic inspection system, to complement existing capabilities. The expansion is slated to proceed over the next three years with full online capacity available in 2008.
Boeing is the world’s leading aerospace company and the largest combined manufacturer of commercial jetliners and military aircraft. With additional capabilities in rotorcraft, electronic and defense systems, missiles, rocket engines, satellites, launch vehicles and advanced information and communication systems, the company’s reach extends to customers in 145 countries.
Kaiser Aluminum (OTCBB: KLUCQ) is a leading producer of fabricated aluminum products for aerospace and high-strength, general engineering, automotive, and custom industrial applications. The company has more than 2,000 employees and 11 plants in North America having the capacity to produce more than 400 million pounds annually of value-added sheet, plate, extrusions, forgings, rod, bar, and tube.
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Kaiser Aluminum and Teamsters Announce Ratification of New Three-Year Labor Contract
FOOTHILL RANCH, Calif. – April 27, 2006 – Kaiser Aluminum and the International Brotherhood of Teamsters today announced the ratification of a new three-year contract covering approximately 125 union members at the company’s Los Angeles facility. The agreement, which calls for typical industry-level wage increases, will commence on May 1, 2006.
“This agreement is the culmination of diligent efforts by the Teamster leadership and Kaiser Aluminum,” said Jack A. Hockema, president and CEO of Kaiser Aluminum. “It is indicative of the strong working partnership that both organizations have developed and our shared objective of positioning Kaiser Aluminum for long-term success.” “The new contract provides our members with a competitive wage and benefit package,” said Sean Harren, International Brotherhood of Teamsters. “We’re happy to have this contract in place so that Teamsters at the Los Angeles facility can help contribute to the future of Kaiser Aluminum.”
“This contract is the last of several that have been ratified over the last year by hourly employees at Kaiser Aluminum union-affiliated facilities, leaving the company with no pending labor contract expirations until April 2007,” added Hockema. “It provides a strong foundation going forward and will be a key factor to our success as the company emerges from bankruptcy.”
Kaiser Aluminum (OTCBB: KLUCQ) is a leading producer of fabricated aluminum products for aerospace and high-strength, general engineering, automotive, and custom industrial applications. The Los Angeles facility, located in the City of Commerce, Calif., manufactures extruded aluminum products for general engineering and custom industrial applications.
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Company press releases may contain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The company cautions that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may vary materially from those expressed or implied in the forward-looking statements as a result of various factors.
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Kaiser Aluminum Reports Net Loss Due to Chapter 11 Related Charge But Continues to Report Strong Core Fabricated Products Earnings in the Fourth Quarter Operating income for year approaches $60 million with $14.3 million in 4Q05 despite $9 million non-cash LIFO inventory charge
FOOTHILL RANCH, Calif. – March 31, 2006 — Kaiser Aluminum reported a net loss of approximately $753.7 million for the year ended December 31, 2005, despite strong results in income for the fabricated products operating segment that will form the core of the company upon emergence from bankruptcy.
The net loss figure is largely attributed to losses related to Chapter 11 restructuring and includes three large non-recurring special items: (a) the previously reported approximate $366 million gain in the second quarter of 2005 related to the company’s sale of interests in and related to Queensland Alumina Limited, (b) a fourth quarter non-cash charge of approximately $1.1 billion associated with the liquidation of certain commodity subsidiaries, and (c) another fourth quarter non-cash charge totaling $42 million associated with resolution of a third-party claim against one of its commodity subsidiaries (now reported as part of Discontinued Operations).
Operating income for 2005 reached $59.8 million, up significantly from 2004 when the company reported an $817.6 million operating loss that included $793.2 million of special charges associated with resolving Chapter 11 related matters. Details regarding the above-noted and other special charges in 2005 and 2004 are set forth in the company’s Form 10-K filed with the Securities and Exchange Commission earlier today.
Net sales for 2005 were approximately $1,089.7 million, up from $942.4 in 2004. The increase reflects the year over year improvement in the fabricated products markets and higher underlying primary aluminum prices.
Although fourth quarter results were also adversely affected by the two special non-cash charges mentioned above, operating income in the fourth quarter totaled approximately $14.3 million. The result would have been the best in 2005 had it not been for an approximate $9 million non-cash last-in-first out (“LIFO”) inventory charge. Such improvement is after considering the previously announced (March 30, 2006) restatement of the company’s quarterly results for the first three quarters of 2005. Net sales for fourth quarter 2005 grew to $273.8 million, up $16.1 million from 2004.
“We experienced particularly strong fourth quarter results in our core fabricated products operations and currently expect such strength to continue into and past the first quarter of 2006,” said Jack A. Hockema, President and CEO of Kaiser Aluminum. “The first quarter of 2006 is the first period in which market activity driving volume and conversion spreads appears to be more broad based and sustainable than in previous quarters, thus our optimism going forward.”
Fabricated products operating income reached $87.2 million in 2005, a $54.2 million increase over the same period in 2004. Fabricated products segment results reflect the higher conversion spreads the company is able to collect as a result of the continuing strength in fabricated products markets, particularly heat treat plate products.
Earnings from continuing operations of the primary aluminum segment in 2005 also improved to $16.4 million, as compared to $13.9 million in 2004. This reflects the net benefits of higher primary aluminum market prices offset by approximately $4.0 million of non-cash charges associated with the company having to mark-to-market its derivative transactions (as more fully discussed in the company’s separate March 30, 2006 press release). However, primary aluminum segment earnings in the foreseeable future will be adversely affected by an approximate 20 percent increase in contractual alumina rates and an approximate 15 percent increase in contractual power costs incurred at the company’s 49 percent owned Anglesey smelter. Power and alumina account for roughly 66 percent of the costs incurred by the Anglesey smelter.
As previously reported, the court overseeing its Chapter 11 proceedings has confirmed the company’s plan of reorganization, which was accepted by all classes of claim holders entitled to vote on it. However, as more fully discussed in the company’s Form 10-K, the plan of reorganization must still be approved by the United States District Court (the “District Court”) and certain other conditions to emergence that must be satisfied or waived and appeals by certain insurers must be addressed by the District Court. The company remains optimistic it can still emerge in the second quarter of 2006.
“The continued strong fabricated products markets provide us considerable momentum and further move us toward our goal of emerging a strong, competitive company with low debt and a solid position for growth,” added Hockema. “With the most difficult aspects of the restructuring process behind us, we look forward to the continued implementation of our key initiatives that will guide the improvement of our operations, further strengthen our market position and help us to grow the company as we work to capture the benefits the current markets offer.”
Kaiser Aluminum Corporation is a leading producer of fabricated aluminum products for aerospace and high-strength, general engineering, automotive, and custom industrial applications.
F-1039 Company press releases may contain statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the future economic performance and financial condition of Kaiser, the status and progress of the company's reorganization, the plans and objectives of the company's management and the company' assumptions regarding such performance and plans. Kaiser cautions that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties, and that actual results may vary materially from those expressed or implied in the forward-looking statements as a result of various factors. Actual events could differ materially from those reflected in the forward-looking statements contained in this press release as a result of various factors, including but not limited to those relating to: obtaining affirmation of confirmation by the U.S. District Court and thereafter consummating the POR; competition in the industry in which Kaiser operates; the loss of Kaiser's customers or changes in the business or financial condition of such customers; conditions in the markets in which Kaiser operates; economic, regulatory and political factors in the foreign countries in which Kaiser operates, services customers or purchases raw materials; unplanned business interruptions; increases in the cost of raw materials Kaiser uses; rising energy costs; Kaiser's hedging program; expiration of the power agreement of Anglesey; Kaiser's loss of key personnel or inability to attract such personnel; employee relations; pending asbestos-related legislation; Kaiser's compliance with health and safety, environmental and other legal regimes; environmental and other legal proceedings or investigations affecting Kaiser; Kaiser's ability to implement new technology initiatives; Kaiser's ability to protect proprietary rights to technology; and other risks described in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) earlier today and available to the public on the SEC’s website at www.SEC.gov and on the company's website at www.kaiseraluminum.com.
KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES (Debtor-in-Possession) CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In millions of dollars)
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Head Office: KAISER ALUMINUM CORP 27422 Portola Parkway Suite 350 Foothill Ranch CA USA 92610-2831 Phone:949 614-1740 Toll Free: Fax:949 614-1930 Email:kinfo*kaiseraluminum.com Website: www.kaiseral.com Officers: George T. Haymaker Jr., Chmn.; Dir., Jack A. Hockema, Presi.; C.E.O.; Dir., John Barneson, Sr. V.P.; Chief Admin. Off., John M. Donnan, V.P.; Sec.; Genl. Counsl., Daniel D. Maddox, V.P.; Controller Summary Kaiser Aluminum Corporation operates in all principal aspects of the aluminum industry - the mining of bauxite, the refining of bauxite into alumina, the production of primary aluminum from alumina, and the manufacture of fabricated (including semi-fabricated) aluminum products. In addition to the production utilized by the company in its operations, the company sells significant amounts of alumina and primary aluminum in domestic and international markets.
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This document seems to answer this question -
KAISER ALUMINUM CORP: 8-K, Sub-Doc 2, Page 1
Exhibit 99.1
For Information: Geoff Mordock (213) 489-8271
U.S. District Court Affirms Confirmation of Kaiser Aluminum Plan of Reorganization Company Targets Emergence Late June or Early July 2006; Affirmation Order Remains Subject to Appeal FOOTHILL RANCH, Calif. — May 12, 2006 — Kaiser Aluminum today announced that on May 11, 2006, the U.S. District Court affirmed the U.S. Bankruptcy Court’s confirmation of the company’s second amended Plan of Reorganization (POR). “We are now approaching the finish line of a long and complex process,” said Jack Hockema, president and CEO of Kaiser Aluminum. “We look forward to emerging with financial and competitive strength, well-positioned for the future with a solid platform for growth.” The affirmation order remains subject to appeal. Even if the order is appealed, as outlined in the POR, absent the issuance of a stay, the company can proceed to emerge if the key constituents in the Chapter 11 proceedings agree to waive the condition that the affirmation be final and non-appealable and if certain other conditions to emergence are satisfied or similarly waived. Such other conditions include completion of the company’s exit financing, listing of the emerging entity’s common stock on the NASDAQ and formation of the trusts for the benefit of the torts claimants. Assuming that all of these things occur, the company believes that it will be able to emerge during the second quarter of 2006 or early in the third quarter of 2006. As previously reported in the company’s SEC documents and past press releases, the company’s restructuring would resolve prepetition claims that are currently subject to compromise including retiree medical, pension, asbestos and other tort, bond, and note claims. Pursuant to the POR the equity interests of current stockholders would be cancelled and the equity in the emerging company would be distributed to creditors or creditor representatives. The POR also entitles two voluntary employee benefit associations created in 2004 to provide medical benefits or funds to defray the cost of medical benefits for salaried and hourly retirees to receive a majority of the new equity to be distributed at emergence. Retiree medical plans existing at that time were cancelled. All personal injury claims relating to both prepetition and future claims for asbestos, silica and coal tar pitch volatiles, and existing claims regarding noise-induced hearing loss, would be permanently resolved by the formation of certain trusts funded primarily by the company’s rights to proceeds from certain of its insurance policies and the establishment of channeling injunctions that would permanently channel these liabilities away from the company and into the trusts. More information is provided in the company’s Annual Report on Form 10-K for the year ended December 31, 2005 and the company’s Quarterly Report on Form 10-Q for the period ended March 31, 2006. Kaiser Aluminum (OTCBB: KLUCQ) is a leading producer of fabricated aluminum products for aerospace and high-strength, general engineering, automotive, and custom industrial applications. F-1044 Company press releases may contain statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation statements regarding the future economic performance and financial condition of Kaiser Aluminum, the status and progress of the company’s reorganization, the plans and objectives of the company’s management and the company’ assumptions regarding such performance and plans. Kaiser Aluminum cautions that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties. Actual events could differ materially from those reflected in the forward-looking statements contained in this press release as a result of various factors, including but not limited to those relating to: consummating the POR; competition in the industry in which Kaiser Aluminum operates; the loss of Kaiser Aluminum’s customers or changes in the business or financial condition of such customers; conditions in the markets in which Kaiser Aluminum operates; economic, regulatory and political factors in the foreign countries in which Kaiser operates, services customers or purchases raw materials; unplanned business interruptions; increases in the cost of raw materials Kaiser Aluminum uses; rising energy costs; Kaiser Aluminum’s hedging program; expiration of the power agreement of Anglesey; Kaiser Aluminum’s loss of key personnel or inability to attract such personnel; employee relations; pending asbestos-related legislation; Kaiser Aluminum’s compliance with health and safety, environmental and other legal regimes; environmental and other legal proceedings or investigations affecting Kaiser Aluminum; Kaiser Aluminum’s ability to implement new technology initiatives; Kaiser Aluminum’s ability to protect proprietary rights to technology; and other risks described in the company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) for the year ended December 31, 2005, and available to the public on the SEC’s website at www.SEC.gov and on the company’s website at www.kaiseraluminum.com.
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