Kaiser sees Q4 operating loss, may sell assets
(UPDATE: Adds power sales and suspended smelter operations paragraphs 5-7)
HOUSTON, Jan 31 (Reuters) - Kaiser Aluminum Corp.(NYSE:KLU - news) said on Wednesday it expects to post an operating loss of some 15 to 20 cents per share for the fourth quarter of 2000, due to lower primary aluminum prices, high energy costs and weak demand.
However, due to the favorable impact of unusual items, the company said it expects to post positive net income for the fourth quarter and the whole year of 2000.
Analysts had expected the company to post a loss of 4 cents per share for the fourth quarter and net income of 18 cents per share for the whole year, according to data gathered by First Call/Thomson Financial.
Kaiser also said it was considering the possible sale of certain assets in whole or in part, in line with its previously disclosed strategy and would use the proceeds for debt reduction, reinvestment or a combination of the two.
The company said it had raised $130 million by selling almost all of the February 2001 and March 2001 power provided under its contract with the Bonneville Power Administration (BPA) as well as portions of its power for April through September 2001.
Kaiser said in December that it was halting its smelter operations in the U.S. Northwest as it prepared for a reduced power allotment under a new 5-year contract with the BPA that takes effect in October 2001.
It said then that it expected to make additional power sales and keep production halted at its smelter in Mead, Wash., until the new contract takes effect. The company closed another smelter in Tacoma, Wash., in June because of soaring power prices.