Kaiser Aluminum Has 1st-Qtr Gain on Aluminum Hedging

Kaiser Aluminum Corp., the No. 3 U.S. aluminum company, said it will have a first-quarter gain of $8.7 million, or 11 cents a share, because of hedging gains related to the price of aluminum.

The gain is a non-cash adjustment made every quarter to account for the difference between the company's hedging contracts to sell aluminum and the forward price of aluminum three months and beyond, the Houston-based company said.

Kaiser hedges to protect against losses when aluminum prices decrease. Aluminum prices on the London Metal Exchange have decreased 7.2 percent over the past three months.

The company is expected to have first-quarter profit from operations of 3 cents a share, according to the average forecast of analysts surveyed by First Call/Thomson Financial.

Houston-based Kaiser's share were unchanged at 4 3/4 on the New York Stock Exchange.