exhibit-20100727.htm

Exhibit 99.1

Century Aluminum Reports Second Quarter 2010 Earnings

MONTEREY, CA. July 27, 2010 -- Century Aluminum Company (NASDAQ:CENX) reported net earnings of $5.1 million ($0.05 per basic and diluted share) for the second quarter of 2010. Reported second quarter results were positively impacted by a mark-to-market gain on forward contracts of $9.3 million primarily related to LME price protection options. Cost of sales for the quarter included a $16.0 million charge for the portion of power costs at Hawesville payable by the previous power supplier per the terms of the power agreements and a $7.0 million charge for lower of cost or market inventory adjustments.

In the second quarter of 2009, the company reported a net loss of $107.1 million ($1.45 per basic and diluted share). Reported second quarter results were negatively impacted by an impairment loss of $73.2 million related to the divestiture of the Gramercy Alumina LLC and St. Ann Bauxite Ltd. joint ventures and a charge of $9.2 million related to ongoing costs associated with the production curtailments at the Ravenswood, WV and Hawesville, KY primary aluminum smelters. Lower of cost or market inventory adjustments of $26.9 million favorably impacted the quarterly results.

Recent highlights included:

•	Cash provided by operating activities was $50.5 million for the quarter; cash and cash equivalents increased to $256.3 million as of June 30, 2010.

•	Negotiations are progressing on a new labor contract for the Hawesville, KY smelter.

•	The $100 million revolving credit facility was refinanced with a generally similar facility maturing in 2014.

•	Nordural continues to prepare for a restart of major construction activities at its greenfield project site near Helguvik, Iceland.

Sales in the second quarter of 2010 were $287.9 million, compared with $189.2 million in the second quarter of 2009. Shipments of primary aluminum for the quarter totaled 144,580 tonnes compared with 145,693 tonnes in the year-ago quarter.

For the first half of 2010, the company reported net income of $11.5 million ($0.11 per basic and diluted share). First half results were positively impacted by a mark-to-market gain on forward contracts of $7.3 million primarily related to LME price protection options. Cost of sales for the six month period included a $31.5 million charge for the portion of power costs at Hawesville payable by the previous power supplier per the terms of the power agreements and a $6.9 million charge for lower of cost or market inventory adjustments. This result compares with a net loss of $221.8 million ($3.20 per basic and diluted share) in the first half of 2009, which included a charge of $33.5 million for costs associated with production curtailments at the Ravenswood, WV and Hawesville, KY primary aluminum smelters, a favorable lower of cost or market inventory adjustment of $24.6 million and an impairment loss of $73.2 million related to the divestiture of the Gramercy Alumina LLC and St. Ann Bauxite Ltd. joint ventures.

Sales in the first six months of 2010 were $573.2 million compared with $413.7 million in the same period of 2009. Shipments of primary aluminum for the first six months of 2010 were 289,257 tonnes compared with 311,181 tonnes for the comparable 2009 period.

Logan Kruger, President and CEO, commented, "The market trends we have monitored since the beginning of the year have continued largely unchanged. Despite some signs of moderation recently, economic growth in China and other developing regions has continued largely apace, and the physical availability of metal remains constrained in most regions. At the same time, we are closely watching the global financial and capital markets and assessing the risk that recent dislocations could dampen the economic recovery. Within this complex framework, we are managing the company, both existing operations and our growth projects, with reasonable caution.

"Century has made good progress during the last several months," continued Mr. Kruger. “The company produced strong cash flow consistent with our expectations. The teams at Hawesville and Grundartangi continue to safely produce good results. The financing and other preparations for our new smelter at Helguvik are proceeding. Final negotiations on amendments to our Helguvik power supply contracts will be a primary factor in determining the timing of the restart of major construction and engineering activity.”

Century Aluminum Company owns primary aluminum capacity in the United States and Iceland. Century's corporate offices are located in Monterey, California.

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Century Aluminum’s quarterly conference call is scheduled for 5:00 p.m. Eastern time today. To listen to the conference call and to view related presentation materials, go to www.centuryaluminum.com and click on the conference call link on the homepage.

Contacts:

Mike Dildine (media) 831-642-9364

Shelly Lair (investors) 831-642-9357

Certified Advisors for the First North market of the OMX Nordic Exchange Iceland hf. for Global Depositary Receipts in Iceland:

Atli B. Gudmundsson, Senior Manager -- Corporate Finance, NBI hf.

Steingrimur Helgason, Director -- Corporate Finance, NBI hf.

Cautionary Statement

This press release and comments made by Century Aluminum management on the quarterly conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements about future, not past, events and involve certain risks and uncertainties, any of which could cause our actual results to differ materially from those expressed in our forward-looking statements. Such risks and uncertainties may include, without limitation, declines in aluminum prices or demand or increases in our operating costs; a worsening of global financial and economic conditions; our ability to access the credit and capital markets on acceptable terms, including to finance the completion of our Helguvik, Iceland smelter; additional delays in the completion of the Helguvik, Iceland smelter; our ability to successfully conclude our labor negotiations at our Hawesville, KY smelter; our ability to successfully manage and/or improve performance at each of our operating smelters; and our ability to successfully conclude negotiations on amendments to the power contracts for the Helguvik, Iceland smelter. More information about these risks, uncertainties and assumptions can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K and in other filings made with the Securities and Exchange Commission. We do not undertake, and specifically disclaim, any obligation to revise any forward-looking statements to reflect the occurrence of future events or circumstances.

Century Aluminum Company

Consolidated Statements of Operations

(In Thousands, Except Per Share Amounts)

(Unaudited)

	Three months ended June 30,						Six Months ended June 30,
	2010			2009			2010			2009
NET SALES:
Third-party customers	$	183,045		$	140,097		$	375,977		$	310,511
Related parties		104,808			49,056			197,265			103,229
		287,853			189,153			573,242			413,740

COST OF GOODS SOLD		266,337			194,380			517,750			491,328

GROSS PROFIT (LOSS)		21,516			(5,227	)		55,492			(77,588	)

OTHER OPERATING EXPENSES – Net		4,644			9,166			9,109			33,498
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		10,964			11,271			23,215			21,391

OPERATING INCOME (LOSS)		5,908			(25,664	)		23,168			(132,477	)

INTEREST EXPENSE – THIRD PARTY – Net		(6,255	)		(7,625	)		(12,552	)		(14,943	)
INTEREST INCOME – RELATED PARTY		111			144			220			286
NET GAIN (LOSS) ON FORWARD CONTRACTS		9,294			(3,268	)		7,322			(6,870	)
OTHER INCOME – Net		230			586			638			344

INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN EARNINGS (LOSSES) OF JOINT VENTURES		9,288			(35,827	)		18,796			(153,660	)

INCOME TAX (EXPENSE) BENEFIT		(4,619	)		(2,573	)		(8,900	)		1,523

INCOME (LOSS) BEFORE EQUITY IN EARNINGS (LOSSES) OF JOINT VENTURES		4,669			(38,400	)		9,896			(152,137	)

EQUITY IN EARNINGS (LOSSES) OF JOINT VENTURES		477			(68,746	)		1,582			(69,633	)

NET INCOME (LOSS)	$	5,146		$	(107,146	)	$	11,478		$	(221,770	)

EARNINGS (LOSS) PER COMMON SHARE
Basic	$	0.05		$	(1.45	)	$	0.11		$	(3.20	)
Diluted	$	0.05		$	(1.45	)	$	0.11		$	(3.20	)

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic		92,672			74,143			92,611			69,402
Diluted		93,332			74,143			93,218			69,402

Percentage of Net Income (Loss) Allocated to Common Shareholders		91.79	%		100.00	%		91.76	%		100.00	%

Century Aluminum Company

Consolidated Balance Sheets

(Dollars in Thousands)

(Unaudited)


	June 30, 2010			December 31, 2009
ASSETS
Current Assets:
Cash and cash equivalents	$	256,264		$	198,234
Restricted cash		9,862			8,879
Accounts receivable – net		36,693			37,706
Due from affiliates		34,222			19,255
Inventories		135,636			131,473
Prepaid and other current assets		39,913			93,921
Total current assets		512,590			489,468
Property, plant and equipment – net		1,274,199			1,298,288
Due from affiliates – less current portion		9,828			5,859
Other assets		79,663			68,135
Total	$	1,876,280		$	1,861,750

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable, trade	$	69,739		$	77,301
Due to affiliates		33,329			32,708
Accrued and other current liabilities		32,016			38,598
Accrued employee benefits costs - current portion		16,027			12,997
Convertible senior notes		44,342			43,239
Industrial revenue bonds		7,815			7,815
Total current liabilities		203,268			212,658

Senior notes payable		248,069			247,624
Accrued pension benefits costs - less current portion		42,073			43,281
Accrued postretirement benefits costs - less current portion		186,625			177,231
Other liabilities		27,239			31,604
Deferred taxes		90,822			81,622
Total noncurrent liabilities		594,828			581,362

Shareholders’ Equity:
Series A Preferred stock (one cent par value, 5,000,000 shares authorized; 82,661 and 83,452 shares issued and outstanding at June 30, 2010 and December 31, 2009, respectively)		1			1
Common stock (one cent par value, 195,000,000 shares authorized; 92,734,496 and 92,530,068 shares issued and outstanding at June 30, 2010 and December 31, 2009, respectively)		927			925
Additional paid-in capital		2,504,165			2,501,389
Accumulated other comprehensive loss		(78,072	)		(74,270	)
Accumulated deficit		(1,348,837	)		(1,360,315	)
Total shareholders’ equity		1,078,184			1,067,730
Total	$	1,876,280		$	1,861,750

Century Aluminum Company

Consolidated Statements of Cash Flows

(Dollars in Thousands)

(Unaudited)

	Six months ended June 30,
	2010			2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	11,478		$	(221,770	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Unrealized net (gain) loss on forward contracts		(7,568	)		2,514
Realized benefit of contractual receivable		32,193			-
Accrued other plant curtailment costs – net		(2,576	)		21,051
Debt discount amortization		1,548			4,004
Depreciation and amortization		31,505			40,063
Lower of cost or market inventory adjustment		6,999			(38,187	)
Deferred income taxes		9,217			25,030
Pension and other postretirement benefits		8,218			7,495
Stock-based compensation		2,163			1,269
Non-cash loss from disposition of equity investments		-			73,234
Undistributed earnings of joint ventures		(1,582	)		(3,601	)
Change in operating assets and liabilities:
Accounts receivable - net		1,013			26,250
Sale of short-term trading securities		-			13,686
Due from affiliates		(16,671	)		24,999
Inventories		(11,162	)		31,140
Prepaid and other current assets		20,423			77,891
Accounts payable, trade		(6,725	)		(24,768	)
Due to affiliates		621			(11,435	)
Accrued and other current liabilities		(2,189	)		(7,109	)
Other - net		(4,773	)		4,916
Net cash provided by operating activities		72,132			46,672

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(3,012	)		(11,927	)
Nordural expansion		(10,113	)		(12,132	)
Investments in and advances to joint ventures		(17	)		(1,023	)
Restricted and other cash deposits		(983	)		-
Net cash used in investing activities		(14,125	)		(25,082	)

CASH FLOWS FROM FINANCIING ACTIVITIES:
Repayment under revolving credit facility		-			(25,000	)
Issuance of common stock - net		23			104,041
Net cash provided by financing activities		23			79,041

NET CHANGE IN CASH AND CASH EQUIVALENTS		58,030			100,631

CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD		198,234			129,400

CASH AND CASH EQUIVALENTS, END OF THE PERIOD	$	256,264		$	230,031

Century Aluminum Company

Selected Operating Data

(Unaudited)

	SHIPMENTS - PRIMARY ALUMINUM
	Direct (1)			Toll
	Metric Tons	(000) Pounds	$/Pound	Metric Tons	(000) Pounds	(000) Revenue
2010
2nd Quarter	76,521	168,700	$1.04	68,058	150,043	$$	112,523
1st Quarter	76,653	168,990	$1.04	68,024	149,968	$$	109,659
2009
2nd Quarter	76,817	169,353	$0.69	68,876	151,846	$$	72,136
1st Quarter	97,392	214,712	$0.72	68,096	150,126	$$	71,048

(1)	Does not include Toll shipments from Nordural Grundartangi