 Second Quarter 2020: Net Sales 276 Million; Value Added Revenue 175 Million, Down 17 Year-over-Year Net Loss 7 Million; Net Loss per Diluted Share 0.41, Includes Pre-tax Restructuring Charges of 12 Million, or 0.57 per Diluted Share After-tax Adjusted Net Income 6 Million; Adjusted Earnings per Diluted Share 0.36 Adjusted EBITDA 34 Million; Adjusted EBITDA Margin 19.7 Total Liquidity 1.0 BillionFirst Half 2020: Net Sales 645 Million; Value Added Revenue 391 Million, Down 9 Year-over-Year Net Income 23 Million; Net Income per Diluted Share 1.41 Adjusted Net Income 36 Million; Adjusted Earnings per Diluted Share 2.27 Adjusted EBITDA 94 Million; Adjusted EBITDA Margin 24.0FOOTHILL RANCH, Calif., July 22, 2020 GLOBE NEWSWIRE -- Kaiser Aluminum Corporation NASDAQ:KALU, a leading producer of semi-fabricated specialty aluminum products, serving customers worldwide with highly-engineered solutions for aerospace and high-strength, custom automotive, general engineering, and other industrial applications, today announced second quarter and first half 2020 results.Second Quarter 2020 HighlightsSecond quarter shipments and value added revenue reflect the impact of lower demand across our end markets due to the effects of COVID-19, said Keith A. Harvey, President and Chief Operating Officer. As we experienced rapid changes in business conditions, we executed on our business model and aggressively flexed costs and operating levels at our facilities in response to lower demand. Although there is often a lag with certain cost and related benefits, our highly variable cost structure allows us to react quickly, and flex costs through the cycles. Despite the decline in end market demand, pricing has held steady, said Mr. Harvey.Demand for the Companys large commercial aerospace applications declined as Boeing and Airbus temporarily halted production and curtailed deliveries, while demand for defense applications continued to remain strong as the F-35 and other legacy fighter programs remained robust. The Companys general engineering business showed good resiliency as demand for high performance KaiserSelect products, along with solid support from the Companys long-term customers, helped create additional pull for its products during the quarter. Demand for automotive applications significantly eroded during the second quarter as virtually all automotive assembly plants in North America temporarily shut down due to COVID-19 concerns. Although most automotive manufacturers resumed operations in June, restarts were slow and uneven throughout the supply chain as facilities continued to deal with COVID-19 outbreaks.As discussed during the Companys first quarter earnings call, Kaisers longstanding business cycle strategy has consistently focused on being well prepared for unexpected economic adversity. In April, the Company issued 350 million aggregate principal amount of 6.50 unsecured senior notes due 2025 to further strengthen its liquidity and financial flexibility. With approximately 1.0 billion of total liquidity, the Company has a strong safety net to navigate the current economic environment, proactively respond in an economic recovery, and capitalize on attractive investment opportunities. OutlookAs the Company noted on the first quarter earnings call, value added revenue for large commercial aerospace and defense applications is anticipated to be down approximately 15 to 20 from record full year 2019 results. The two businesses combined represent approximately 50 of the Companys total value added revenue.For the second half 2020, we anticipate total value added revenue will be down approximately 10 to 15 from the second quarter pace, with EBITDA margin in the mid-teens, said Mr. Harvey. Compared to the second quarter pace, we expect value added revenue for aerospace and high strength applications will be weak in the second half as large commercial aerospace shipments were heavily weighted to the first half of 2020. We expect normal seasonal demand weakness for our general engineering applications and anticipate a strong rebound for our automotive applications to value added revenue similar to the first quarter pace as customers return to more normal operations, and new program launches resume. Our second half outlook for value added revenue and EBITDA margin anticipates a weaker third quarter than fourth quarter due to timing of aerospace shipments and approximately 4 million of higher major maintenance costs related to timing of planned projects.As previously noted during our first quarter earnings call, in April we began limiting capital spending to critical sustaining projects only; however, with ample liquidity and more visibility for our end markets, we will proactively initiate capital spending on a number of organic investment opportunities to further support our automotive growth and enhance efficiencies throughout our operations. We anticipate that total capital spending for the full year 2020 will be approximately 50 to 60 million, concluded Mr. Harvey.Second Quarter and First Half 2020 Consolidated Results Unaudited In millions of dollars, except shipments, realized price and per share amounts Quarterly Six Months 2Q20 1Q20 2Q19 1H20 1H19 Shipments millions of lbs. 119 156 156 274 318 Net sales 276 369 375 645 771 Less hedged cost of alloyed metal1 101 153 166 254 343 Value added revenue 175 217 209 391 428 Realized price per pound lb. Net sales 2.32 2.37 2.41 2.35 2.42 Less hedged cost of alloyed metal 0.85 0.98 1.07 0.92 1.08 Value added revenue 1.47 1.39 1.34 1.43 1.34 As reported Operating income 5 46 32 50 75 Net loss income 7 29 19 23 47 Net loss income per share, diluted2 0.41 1.81 1.18 1.41 2.89 Adjusted3 Operating income 21 46 35 68 80 EBITDA4 34 59 48 94 104 EBITDA margin5 19.7 27.4 22.7 24.0 24.3 Net income 6 30 23 36 53 EPS, diluted2 0.36 1.90 1.40 2.27 3.24 1 Hedged cost of alloyed metal is our Midwest transaction price of aluminum plus the price of alloying elements plus any realized gains andor losses on settled hedges, related to the metal sold in the referenced period. 2 Diluted shares for EPS are calculated using the treasury stock method. 3 Adjusted numbers exclude non-run-rate items for all Adjusted numbers and EBITDA refer to Reconciliation of Non-GAAP Measures. 4 Adjusted EBITDA Consolidated operating income, excluding operating non-run-rate items, plus Depreciation and amortization. 5 Adjusted EBITDA margin Adjusted EBITDA as a percent of Value Added Revenue.Please refer to GAAP financial statements. Totals may not sum due to rounding.Second Quarter 2020 Net sales for the second quarter 2020 were 276 million compared to 375 million in the prior year period, reflecting a 24 decrease in shipments and a 4 decrease in average selling price. The decrease in average selling price reflected an approximately 10 increase in value added revenue per pound and a 21 decrease in underlying contained metal costs.Value added revenue for the second quarter 2020 decreased to 175 million from 209 million in the prior year period, reflecting a 24 decrease in shipments as demand across end markets was impacted by COVID-19 as customers temporarily shut down operations and curtailed deliveries during the quarter. Value added revenue for the Companys aerospacehigh strength applications decreased 15 to 102 million and shipments decreased 25 reflecting temporary suspension of operations by aircraft manufacturers during the quarter and a slightly more favorable customer mix. Value added revenue for automotive extrusions decreased 58 to 9 million, reflecting a 58 decrease in shipments, as virtually every North American automotive manufacturer shut down operations due to the COVID-19 pandemic. Value added revenue for general engineering applications increased approximately 1 on a 7 decrease in shipments reflecting solid pricing and mix.Adjusted EBITDA of 34 million in the second quarter of 2020 decreased 14 million compared to the prior year period reflecting the impact from lower value added revenue and operating leverage. Costs related to COVID-19 prevention and cleaning was approximately 1 million during the quarter. EBITDA as a percentage of value added revenue was a 19.7 in the second quarter 2020 as compared to 22.7 in the prior year period.Reported operating income for the second quarter 2020 was approximately 5 million. Adjusting for approximately 17 million of non-run-rate charges, operating income for the second quarter of 2020 was approximately 21 million, compared to 35 million in the prior year quarter reflecting the items previously mentioned and an approximate 1 million year-over-year increase in depreciation expense. The 17 million of non-run-rate charges in the second quarter 2020 primarily reflects an approximately 12 million restructuring charge for severance and benefit costs as we flexed our cost and reduced our operating levels to align with lower demand, and an approximately 2 million charge for ongoing historical environmental issues associated with PCB cleanup. Reported net loss for the second quarter 2020 was 7 million, or loss of 0.41 per diluted share, compared to net income and diluted earnings per share of 19 million and 1.18, respectively, for the prior year period. Excluding the impact of non-run-rate items, adjusted net income was 6 million or 0. 