Kaiser Aluminum Corporation announced net income of USD 5 million or USD 0.24 earnings per diluted share for the Q2 2011 compared sequentially to USD 11 million or USD 0.59 per diluted share for the Q1 2011 and USD 0 million or USD 0.01 earnings per diluted share for the prior year Q2. Excluding the impact of non run rate items, adjusted net income and earnings per diluted share were USD 12 million and USD 0.63 for the Q2 2011 a sequential improvement from adjusted net income and earnings per diluted share of USD 8 million and USD 0.42 in the Q1 of 2011 and slightly lower than USD 13 million and USD 0.68 in the prior year quarter.
Value added revenue of USD 160 million for the Q2 2011 was comparable to the Q1 2011 and increased USD 12 million or 8% from the prior year Q2 reflecting the favorable impact of recent acquisitions and improving demand. Adjusted consolidated EBITDA increased sequentially to USD 30 million or 19% of value added revenue compared to USD 23 million or 15% of value added revenue in the Q1 reflecting a sequential improvement in manufacturing efficiencies and improved pass through of metal costs on certain products. Adjusted consolidated EBITDA and margin for the Q2 2011 was comparable to the Q2 2010.
Mr Jack A Hockema president, CEO and Chairman of Kaiser Aluminum said that "We are pleased with the improvement and progress we made during the quarter. Solid demand across our end market applications combined with the benefit of our recent acquisitions continued to drive higher sales and higher adjusted EBITDA. In addition our adjusted EBITDA margin as a percentage of value added revenue improved as we were able to recapture a significant portion of the margin squeeze that arose from sharply rising aluminum and alloying costs on spot sales of our high value added products as we discussed in our prior quarter earnings release."
He said that as we look to the future we are very optimistic about our prospects for growth. We have a strong aerospace order book and are well positioned to meet the growing demand with previous investments in plate capacity and with the recently announced expansion of our Kaiser Alexco aerospace extrusion facility. In addition, the ramp up of our Kalamazoo, Michigan extrusion facility continues to gain momentum and we expect that EBITDA margins will continue to improve as we realize price increases and improving cost benefits from Kalamazoo.
