Kaiser Aluminum to shutter Texas facility

Kaiser Aluminum, which serves the automotive and aerospace industries, said it does not anticipate closures at its other manufacturing sites, according to the Dallas Morning News.

Recall in April, Kaiser said it anticipated demand will improve throughout 2024, but cautioned: “In aerospace/high-strength applications, a more cautious outlook is warranted on expected build rates for domestic large commercial jet production in the near-term resulting in anticipated flat conversion revenue in 2024 following a strong 2023. The long-term demand outlook for these platforms remains unchanged. The company believes demand for other aerospace/high-strength applications remains strong.”

Kaiser’s comments in April came with the release of its Q1 results, which showed drops in most key performance indicators – shipments down 2.7% y/y to 291 Mlbs (132,000 mt); sales revenue down 8.7% to $738 M y/y; and an average realized price of $2.53/lb versus $2.70/lb last year. However, net profit rose 54.7% to $24.6 M mainly thanks to much lower production costs of $643 M against a year-ago level of $731 M.