Century Aluminum shares fall after 2Q report

NEW YORK

Shares of Century Aluminum Co. plunged Wednesday after the company posted a second-quarter profit below analyst estimates.

Late Tuesday, the aluminum producer reported quarterly income of $5.1 million, or 5 cents per share, compared with a year-ago loss of $107.1 million, or $1.45 per share.

Revenue rose to $287.9 million from $189.2 million.

Analysts polled by Thomson Reuters projected profit of 25 cents per share on revenue of $292 million.

Century Aluminum said while economic growth in China and other developing regions like India remains swift, "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."

In a conference call with analysts President and CEO Logan Kruger added "outside of China and perhaps India, demand growth continues to lack conviction and large global inventory levels remain a concern. We as a company will continue to focus on running the business prudently in this uncertain environment."

Credit Suisse on Wednesday cut its target price on the stock to $17 from $20. Shares fell $1.03, or 9.8 percent, to $9.52 in midday trading. The stock has traded between $7.12 and $18.77 over the past year.