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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