Kaiser Aluminum Corporation Reports Second Quarter and Year-to-Date 2010 Financial...

Kaiser Aluminum Corporation Reports Second Quarter and Year-to-Date 2010
Financial Results

FOOTHILL RANCH, Calif., Aug. 2, 2010 (GLOBE NEWSWIRE) --

-- Consolidated Adjusted Operating Income of $26 Million, a 62% Sequential
Improvement

-- Fabricated Products Quarterly Results Best in Two Years

-- Adjusted Segment Operating Income of $35 Million
-- Value Added Revenue and Manufacturing Cost Efficiencies Continue to
Improve

-- Kalamazoo Extrusion Facility Proceeding on Schedule

FOOTHILL RANCH, Calif., Aug. 2, 2010 (GLOBE NEWSWIRE) -- Kaiser Aluminum
Corporation (Nasdaq:KALU) today reported net income of $0.1 million and earnings
per diluted share of $0.01 for the second quarter ended June 30, 2010 compared
to $20 million and earnings per diluted share of $0.97 for the quarter ended
June 30, 2009. Both periods included significant pre-tax, non-run-rate items
related primarily to non-cash mark-to-market gains and losses on derivative
positions. Non-run-rate losses in the second quarter 2010 were approximately $22
million compared to non-run-rate gains of $22 million in the second quarter of
2009. Excluding the impact of these pre-tax, non-run-rate items, adjusted net
income was $13.5 million, or $0.71 earnings per diluted share, for the second
quarter of 2010 compared to adjusted net income and earnings per diluted share
of $6.5 million and $0.32, respectively, for the prior year quarter.

For the six months ended June 30, 2010, reported net income was $9 million
compared to $23 million in the prior year period. Earnings per diluted share
were $0.45 as compared $1.16 for the prior year period. Earnings results for the
six months ended June 30, 2010 included approximately $22 million of pre-tax,
non-run-rate losses compared to approximately $1 million of pretax, non-run-rate
gains in the comparable 2009 period.

Second Quarter Summary Comments

"The underlying second quarter results for our Fabricated Products segment were
the best in two years," said Jack A. Hockema, President, CEO and Chairman.
"Adjusted operating income increased 30% on a sequential basis and 75% compared
to the prior year quarter. The sequential increase was driven by higher value
added revenue on stronger-than-expected shipments of aerospace and high strength
applications as well as continued improvement in manufacturing cost
efficiencies.

"In addition, the startup of our world-class rod and bar extrusion facility in
Kalamazoo, Michigan is progressing on schedule to become fully operational by
the end of the year."

Second Quarter and Six Months YTD 2010 Consolidated Results
(Non GAAP, Unaudited)*
($mm, except per share amounts)

Six Months

Quarter Year-to-Date
--------------------- -------------------

2Q10 1Q10 2Q09 2010 2009
------- ----- ----- ------------ -----

Net Sales $282 $268 $232 $550 $498

Value Added Revenue 1 $148 $137 $120 $285 $266

Operating Income (Loss) before
NRR 2
--------------------------------
Fabricated Products $35 $27 $20 $62 $48
All Other
Anglesey-related / Hedging $0 $0 $3 $0 $12
Corporate ($9) ($11) ($9) ($21) ($19)

Consolidated Operating Income
before NRR 2 $26 $16 $13 $41 $41

Non-Run-Rate Items ($22) ($1) $22 ($22) $1

Reported Consolidated Operating
Income 3 $4 $15 $35 $19 $42

Net Income
-------------------------------- $0 $9 $20 $9 $23

EPS (diluted, GAAP) $0.01 $0.44 $0.97 $0.45 $1.16
Adjusted EPS 4 $0.71 $0.47 $0.32 $1.16 $1.14

1 Value added revenue = Fabricated Products net sales less hedged cost of
alloyed metal, 2 NRR = Non-run-rate
3 Totals may not sum due to rounding, 4 Adjusted EPS excluding NRR items
(net of tax)
* Please refer to GAAP financial statements

The Company reported consolidated operating income of $4 million in the second
quarter 2010 compared to $15 million in the first quarter 2010 and $35 million
in the prior year period. Non-run-rate items were significant in the second
quarters of both 2010 and 2009, driven by a non-cash, mark-to-market loss on
derivative positions of $19 million for the second quarter 2010 compared to a
non-cash, market-to-market gain of $27 million for the comparable quarter of
2009. Adjusting for these and other non-run-rate items, consolidated operating
income for the second quarter 2010 was $26 million, representing an increase of
62% compared to the first quarter 2010 and 92% compared to the second quarter
2009. The improvement was primarily driven by higher value added revenue and
continued improvement in manufacturing efficiencies in the Fabricated Products
segment.

For the six months ended June 30, 2010, reported consolidated operating income
was $19 million compared to $42 million for the prior year period. Adjusted for
non-run-rate items, operating income was $41 million for both six month periods.

Second Quarter and Six Months YTD 2010 Fabricated Products Segment Results
(Non GAAP, Unaudited)*
($mm, unless otherwise noted)

Six Months

Quarter Year-to-Date
----------------------- --------------------

2Q10 1Q10 2Q09 2010 2009
------- ------ ------ ------------ ------

Shipments (lbs, mm) 133 128 101 261 210

Net Sales $282 $267 $205 $550 $446

Value Added Revenue 1 $148 $137 $120 $285 $266

Average Realized Price ($/lb)
------------------------------
Metal Price $1.02 $1.02 $0.84 $1.02 $0.85

Value Added Revenue 1 $1.11 $1.07 $1.18 $1.09 $1.27
------- ------ ------ ------------ ------
Total $2.13 $2.09 $2.02 $2.11 $2.12

Operating Income before NRR 2 $35 $27 $20 $62 $48

Non-Run-Rate Items ($2) ($4) ($1) ($6) ($16)

Reported Operating Income $33 $23 $19 $56 $33

1 Value Added Revenue = Net Sales less the hedged cost of alloyed metal, 2
NRR = Non-Run-Rate
* Please refer to GAAP financial statements

The Fabricated Products segment reported operating income of $33 million in the
second quarter 2010, an increase from $23 million in the first quarter 2010 and
$19 million in the comparable prior year period. Adjusted for non-run-rate
items, operating income continued an upward trend to $35 million in the second
quarter 2010, representing an increase of 30% compared to the first quarter 2010
and 75% compared to the second quarter 2009. The improvement reflected the
impact of higher value added revenue on stronger-than-expected shipments of
aerospace and high strength applications combined with continued improvement in
manufacturing efficiencies.

For the six months ended June 30, 2010, reported operating income in the
Fabricated Products segment increased to $56 million from $33 million in the
comparable 2009 period. Adjusted for non-run-rate items, segment operating
income for the six months ended June 30, 2010 was $62 million, a $14 million
improvement over the comparable 2009 period due primarily to improvement in
manufacturing cost efficiencies.

Outlook

"We expect third quarter demand for aerospace and high strength applications to
continue at a pace comparable to what we experienced, on average, in the first
half of 2010," said Mr. Hockema. "Shipments and value added revenue for our
general engineering and automotive applications are anticipated to reflect
normal seasonal weakness.

"More importantly, the long-term fundamentals of our business remain solid, and
we are pleased with how the Company is positioned. We foresee strong long-term
growth in demand for our aerospace and automotive applications, and we have yet
to fully realize the benefits of significant capital investments throughout our
manufacturing platform, particularly in Trentwood and Kalamazoo," concluded Mr.
Hockema.

Conference Call

Kaiser Aluminum Corporation will host a conference call on Tuesday, August 3,
2010, at 10:00am (Pacific Time); 12:00pm (Central Time); 1:00pm (Eastern Time),
to discuss second quarter 2010 results. To participate, the conference call can
be directly accessed from the U.S. and Canada at (888) 663-2260, and accessed
internationally at (913) 312-6684. A link to the simultaneous web cast can be
accessed on the Company's website at
http://investors.kaiseraluminum.com/events.cfm. A copy of a presentation will be
available to be downloaded prior to the start of the call. An audio archive will
be available on the Company's website following the call.

Kaiser Aluminum Corporation, headquartered in Foothill Ranch, Calif., is a
leading producer of semi-fabricated specialty aluminum products, serving
customers worldwide with highly-engineered solutions for aerospace and
high-strength, general engineering, and custom automotive and industrial
applications. The Company's North American facilities produce value-added sheet,
plate, extrusions, rod, bar, and tube products, adhering to traditions of
quality, innovation and service that have been key components of our culture
since the Company was founded in 1946. The Company's stock is included in the
Russell 2000(R) index.

The Kaiser Aluminum Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6081

Available Information

For more information, please visit the Company's web site at
www.kaiseraluminum.com. The web site includes a section for investor relations
under which the Company provides notifications of news or announcements
regarding its financial performance, including Securities and Exchange
Commission (SEC) filings, investor events and press and earnings releases. In
addition, all Company filings submitted to the SEC are available through a link
to the section of the SEC's web site at www.sec.gov which includes: Annual
Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form
8-K, Proxy Statements for the Company's annual stockholder's meetings and other
information statements as filed with the SEC. In addition, the Company provides
a webcast of its quarterly earnings calls and certain events in which management
participates or hosts with members of the investment community.

Non-GAAP Financial Measures

This earnings release contains certain non-GAAP financial measures. A "non-GAAP
financial measure" is defined as a numerical measure of a company's financial
performance that excludes or includes amounts so as to be different than the
most directly comparable measure calculated and presented in accordance with
GAAP in the statements of income, balance sheets or statements of cash flow of
the company. Pursuant to the requirements of Regulation G, the Company has
provided a reconciliation of non-GAAP financial measures to the most directly
comparable financial measure in the accompanying tables.

The non-GAAP financial measures used within this earnings release are operating
profit, net income and earnings per diluted share, excluding non-run-rate,
non-operating gains and losses, and earnings before interest, tax, depreciation
and amortization or EBITDA. These measures are presented because management uses
this information to monitor and evaluate financial results and trends and
believes this information to also be useful for investors.

This press release contains statements based on management's current
expectations, estimates and projections that constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995 involving known and unknown risks and uncertainties that may cause
actual results, performance or achievements of the Company to be materially
different from those expressed or implied. Kaiser Aluminum cautions that such
forward-looking statements are not guarantees of future performance or events
and involve significant risks and uncertainties and actual events may vary
materially from those expressed or implied in the forward-looking statements as
a result of various factors. These factors include: (a) changes in the demand in
the market segments served by the Company, including aerospace, defense, general
engineering, automotive, distribution and other market segments, including
changes impacting the volume, price or mix of products sold by the Company and
the Company's ability to flex production consistent with changing demand levels;
(b) pressure to reduce defense spending and demand for the Company's products
used in defense applications as the U.S. and other governments are faced with
competing national priorities; (c) the Company's ability to continue to realize
manufacturing efficiencies and remain a low cost producer, (d) the Company's
ability to successfully identify and execute its long term strategic growth
initiatives and internal and external growth opportunities; (e) the Company's
ability to efficiently deploy assets to collateralize existing and future
financing requirements; (f) the Company's ability to meet contractual
commitments and obligations to supply products meeting required specifications;
(g) changes in competitive factors in the markets served by the Company,
including developments in technology used by the Company, its competitors or its
customers and changes in applicable laws and regulatory requirements which
negatively impact the Company's competitive position; (h) the Company's ability
to lower energy costs, realize manufacturing efficiencies and complete its
expansion and organic growth projects, equipment and facility upgrades to
improve manufacturing and cost efficiencies and product expansions as planned
and by targeted completion dates, including the start-up and operation of the
Company's new rod and bar extrusion facility in Kalamazoo, Michigan; and (i)
other risk factors summarized in the Company's reports filed with the Securities
and Exchange Commission, including the Company's Form 10-K for the year ended
December 31, 2009 and Current Report on Form 10-Q filed with the Securities and
Exchange Commission for the quarter ended March 31, 2010. As more fully
described in these reports, "non-run-rate" items are items that, while they may
occur from period to period, are particularly material to results, impact costs
primarily as a result of external market factors and may not occur in future
periods if the same level of underlying performance were to occur. All
information in this release is as of the date of the release. The Company
undertakes no duty to update any forward-looking statement to conform the
statement to actual results or changes in the Company's expectations.

KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

STATEMENTS OF CONSOLIDATED INCOME (1) (2)
(Unaudited)
(In millions of dollars except share and per share amounts)

Quarter Ended Six Months Ended
June 30, June 30,
------------------ ------------------

2010 2009 2010 2009
-------- -------- -------- --------

Net sales $ 282.4 $ 232.1 $ 549.9 $ 498.0
-------- -------- -------- --------
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding
depreciation, amortization and
other items 255.9 170.3 487.9 395.9
Lower of cost or market
inventory write-down -- -- -- 9.3
Impairment of investment in
Anglesey -- 1.2 -- 1.8
Restructuring costs and other
charges (benefits) 0.1 5.1 (0.5) 6.3
Depreciation and amortization 5.0 4.3 9.0 8.4
Selling, administrative, research
and development, and general 15.4 17.1 32.7 35.0
Other operating charges
(benefits), net 2.0 (0.9) 2.0 (0.9)
-------- -------- -------- --------

Total costs and expenses 278.4 197.1 531.1 455.8
-------- -------- -------- --------
Operating income 4.0 35.0 18.8 42.2
Other income (expense):
Interest expense (3.5) (0.2) (3.5) (0.4)

Other income (expense), net 0.7 -- 0.9 (0.1)
-------- -------- -------- --------
Income before income taxes 1.2 34.8 16.2 41.7

Income tax provision (1.1) (15.2) (7.3) (18.3)
-------- -------- -------- --------

Net income $ 0.1 $ 19.6 $ 8.9 $ 23.4
======== ======== ======== ========
Earnings per share -- Basic (3):

Net income per share $ 0.01 $ 0.97 $ 0.45 $ 1.16
======== ======== ======== ========
Earnings per share -- Diluted (3):

Net income per share $ 0.01 $ 0.97 $ 0.45 $ 1.16
======== ======== ======== ========
Weighted-average number of common
shares outstanding (000):

Basic 18,917 19,538 19,710 19,506
======== ======== ======== ========

Diluted 18,917 19,538 19,710 19,506
======== ======== ======== ========

(1) The consolidated financial statements include the statements of the
Company and its wholly owned subsidiaries and a 49% interest in Anglesey
Aluminium Limited ("Anglesey"), which operated as an aluminum smelter
until September 30, 2009 and, following that date, remelts and casts
secondary aluminum.

(2) Please refer to the Company's Form 10-Q for the quarter ended June 30,
2010, for additional detail regarding the items in the table.

(3) All of the Company's unvested share-based payment awards that contain
non-forfeitable rights to dividends or dividend equivalents (whether paid
or unpaid) are treated as participating securities and affect the
computation of net income (loss) available to common stockholders and
earnings per share pursuant to the two-class method.

KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

SELECTED OPERATIONAL AND FINANCIAL INFORMATION (1) (2)

(Unaudited)

(In millions of dollars except shipments and average realized third-party
sales
price)

Quarter Ended Six Months Ended

June 30, June 30,

-------------------
-------------------

2010 2009 2010 2009

-------- --------- --------
---------

Shipments (millions of pounds):

Fabricated Products 132.7 101.4 260.6
210.4

All Other (3) -- 36.5 0.4
72.7
-------- --------- --------
---------
132.7 137.9 261.0
283.1

Average Realized Third Party Sales

Price (per pound):

Fabricated Products(4) $ 2.13 $ 2.02 $ 2.11 $
2.12
All Other (5) $ -- $ 0.75 $ 0.92 $
0.72
Net Sales:

Fabricated Products $ 282.4 $ 204.8 $ 549.6 $
445.6

All Other -- 27.3 0.3
52.4
-------- --------- --------
---------
Total Net Sales $ 282.4 $ 232.1 $ 549.9 $
498.0
Segment Operating Income (Loss):

Fabricated Products(6)(7) $ 33.1 $ 18.6 $ 56.1 $
32.6

All Other (8) (29.1) 16.4 (37.3)
9.6
-------- --------- --------
---------

Total Operating Income $ 4.0 $ 35.0 $ 18.8 $
42.2
-------- --------- --------
---------

Income tax provision $ (1.1) $ (15.2) $ (7.3) $
(18.3)
======== ========= ========
=========

Net Income $ 0.1 $ 19.6 $ 8.9 $
23.4
======== ========= ========
=========
Capital Expenditures, net of change

in accounts payable $ 12.8 $ 14.4 $ 26.7 $
36.6

(1) The consolidated financial statements include the statements of the
Company
and its wholly owned subsidiaries and a 49% interest in Anglesey Aluminium

Limited ("Anglesey"), which operated as an aluminum smelter until September

30, 2009 and, following that date, remelts and casts secondary aluminum.

(2) Please refer to the Company's Form 10-Q for the quarter ended June 30,

2010, for additional detail regarding the items in the table.

(3) For the quarters and six month periods ended June 30, 2010 and June 30,

2009, shipments in All Other represented shipments of primary aluminum

products produced by Anglesey.

(4) Average realized prices for our Fabricated Products segment are subject to

fluctuations due to changes in product mix as well as underlying primary

aluminum prices and are not necessarily indicative of changes in underlying

profitability.

(5) Average realized prices for All Other represent average realized prices on

sales of primary aluminum product produced by Anglesey and is subject to

fluctuations in LME price of metal.

(6) Fabricated Products segment operating results for the quarter and six

months ended June 30, 2010 include a non-cash last-in, first-out ("LIFO")

inventory benefit (charge) of $1.0 million and $(8.2), respectively, and
metal
(losses) gains of approximately $(0.9) million and $7.3 million,
respectively.
Fabricated Products segment operating results for the quarter and six months

ended June 30, 2009 include a non-cash LIFO inventory benefit of $2.1 million

and $13.2 million, respectively, and metal losses of approximately $1.0

million and $16.5 million, respectively. Also included in the Fabricated

Products segment operating results for the six months ended June 30, 2009 was

a $9.3 million lower of cost or market inventory write-down recognized in the

first quarter of 2009. Fabricated Products segment operating results for the

quarter and six months ended June 30, 2009 include $4.2 million and $5.4

million, respectively, of restructuring charges relating to the restructuring

plans involving our Tulsa, Oklahoma and Bellwood, Virginia facilities.

(7) Fabricated Products segment includes non-cash mark-to-market gains
(losses)
on natural gas and foreign currency hedging activities totaling $0.4 million

and $(2.8) million in the quarter and six months ended June 30, 2010,

respectively. Fabricated Products segment also includes non-cash

mark-to-market gains on natural gas and foreign currency hedging activities

totaling $2.2 million and $2.7 million in the quarter and six months ended

June 30, 2009, respectively. For further discussion regarding mark-to-market

matters, please refer to Note 13 of the Company's Form 10-Q for the quarter

ended June 30, 2010.

(8) With respect to operating income in All Other, Hedging business unit

operating results for the quarters ended June 30, 2010 and June 30, 2009

include non-cash mark-to-market (losses) gains on primary aluminum hedging

activities totaling $(19.4) million and $16.9 million and on foreign currency

derivatives totaling zero and $7.5 million, respectively. For the six month

periods ended June 30, 2010 and June 30, 2009, Hedging business unit
operating
results include non-cash mark-to-market (losses) gains on primary aluminum

hedging activities totaling $(16.0) million and $7.9 million and on foreign

currency derivatives totaling zero and $11.7 million, respectively. For

further discussion regarding mark-to-market matters, please refer to Note 13

of the Company's Form 10-Q for the quarter ended June 30, 2010.

KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS (1) (2)
(Unaudited)
(In millions of dollars, except share and per share
amounts)

December
June 30, 31,

2010 2009
--------- ---------

ASSETS
Current assets:
Cash and cash equivalents $134.4 $30.3
Receivables:
Trade, less allowance for doubtful
receivables of $0.6
and $0.8 at June 30, 2010 and
December 31, 2009, respectively 90.9 83.7
Due from affiliate -- 0.2
Other 5.0 2.2
Inventories 146.7 125.2
Current assets - held for sale 2.6 --
Prepaid expenses and other current
assets 53.0 59.1
--------- ---------
Total current assets 432.6 300.7
Property, plant, and equipment --
net 349.1 338.9
Net asset in respect of VEBA 172.3 127.5
Deferred tax assets -- net 254.8 277.2
Other assets - held for sale 3.1 --

Other assets 62.9 41.2
--------- ---------

Total $1,274.8 $1,085.5
========= =========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $51.4 $49.0
Accrued salaries, wages, and
related expenses 28.0 33.1
Other accrued liabilities 29.2 32.1
Payable to affiliate 18.6 9.0
Current liabilities -- held for
sale 0.9 --
--------- ---------
Total current liabilities 128.1 123.2
Net liability in respect of VEBA 0.9 0.3
Long-term liabilities 98.9 53.7
Cash convertible senior notes 138.4 --

Other long-term debt 7.1 7.1
--------- ---------
373.4 184.3
Stockholders' equity:
Common stock, par value $0.01,
90,000,000 shares authorized
at both June 30, 2010 and at
December 31, 2009; 19,216,413
shares
issued and outstanding at June 30,
2010 and 20,276,571 shares
issued and outstanding at December
31, 2009 0.2 0.2
Additional capital 985.4 967.8
Retained earnings 84.3 85.0
Common stock owned by Union VEBA
subject to transfer restrictions,
at reorganization value, 3,708,922
shares at June 30, 2010 and
4,845,465
shares at December 31, 2009 (89.1) (116.4)
Treasury stock, at cost, 1,724,606
shares at June 30, 2010 and
572,706 shares at December 31, 2009 (72.3) (28.1)

Accumulated other comprehensive loss (7.1) (7.3)
--------- ---------

Total stockholders' equity 901.4 901.2
--------- ---------

Total $1,274.8 $1,085.5
--------- ---------

(1) The consolidated financial statements include the
statements of the Company and its wholly owned
subsidiaries and a 49% interest in Anglesey Aluminium
Limited ("Anglesey"), which operated as an aluminum
smelter until September 30, 2009 and, following that
date, remelts and casts secondary aluminum.

(2) Please refer to the Company's Form 10-Q for the
quarter ended June 30, 2010 for additional detail
regarding the items in the table.

Reconciliation of Non-GAAP Measures

The following table presents a reconciliation of non-GAAP measures presented in
the earnings release for the quarter ended June 30, 2010:

Fabricated All

Products Other
Consolidated
---------- --------
------------

GAAP operating income (loss) $ 33.1 $ (29.1)
$ 4.0

Mark to market gains (losses) 0.4 (19.4)
(19.0)

Restructuring costs and other operating charges (2.0) ─
(2.0)

Other non-run-rate items (1) 0.1 (0.6)
(0.5)
---------- --------
------------

Total non-run-rate adjustments (1.5) (20.0)
(21.5)
---------- --------
------------

Operating income (loss), excluding non-run-rate

items $ 34.6 $ (9.1)
$ 25.5
========== ========
============

GAAP net income
$ 0.1

Total non-run-rate adjustments (net of tax)
13.4

------------

Net income, excluding non-run-rate adjustments (net

of tax)
$ 13.5

============

Diluted earnings per share (GAAP)
$ 0.01

============

Diluted earnings per share, excluding non-run-rate

items
$ 0.71

============

(1) Other non-run-rate items represent non-cash LIFO benefit and metal losses
for the
Fabricated Products

segment and non-cash net periodic benefit costs related to the VEBAs for
Corporate and
Other segment.

The following table presents a reconciliation of non-GAAP measures presented in
the earnings release for the quarter ended June 30, 2009:

Fabricated All

Products Other
Consolidated
---------- --------
------------

GAAP operating income $ 18.6 $ 16.4
$ 35.0

Mark to market gains 2.2 24.4
26.6

Restructuring costs and other operating charges (4.2) (0.9)
(5.1)

Other non-run-rate items (1) 0.6 (0.5)
0.1
---------- --------
------------

Total non-run-rate adjustments (1.4) 23.0
21.6
---------- --------
------------

Operating income (loss), excluding non-run-rate

items $ 20.0 $ (6.6)
$ 13.4
========== ========
============

GAAP net income
$ 19.6

Total non-run-rate adjustments (net of tax)
(13.1)

------------

Net income, excluding non-run-rate adjustments (net

of tax)
$ 6.5

============

Diluted earnings per share (GAAP)
$ 0.97

============

Diluted earnings per share, excluding non-run-rate

items
$ 0.32

============

(1) Other non-run-rate items represent non-cash LIFO benefit, metal losses,
and
pre-emergence related

environmental costs for the Fabricated Products segment and non-cash net
periodic benefit
costs related

to the VEBAs and bad debt recoveries from pre-emergence write-offs for
Corporate and Other
segment.

CONTACT: Kaiser Aluminum Corporation
Investor Relations Contact:
Melinda C. Ellsworth
(949) 614-1757

FD
Public Relations Contact:
Dave Quast
(646) 421-5341