Dahlman Rose Comments On Century Aluminum Following Recent Earnings Release

Century Aluminum CENX reported 1Q11 adjusted EPS of $0.18, which was below Dahlman's and the consensus estimates. Dahlman is maintaining its 2011 and 2012 earnings estimates and Hold rating on the shares. Century Aluminum reported 1Q10 adjusted EPS of $0.18. This was below Dahlman's estimate of $0.26 and the consensus estimate of $0.27. Shipments fell below forecast, as the ramp-up of the fifth potline at Hawesville affected production at the rest of the facility and progressed slower than expected. The reported Hawesville restart cost was also higher than anticipated. Dahlman Rose is maintaining its 2011 EPS and 2012 EPS estimates of $1.15 and $2.10, respectively. It is initiating a 2Q11 EPS estimate of $0.30. Dahlman shares management's favorable outlook on the global aluminum market and believes that primary aluminum prices should be well supported. It considers CENX as an excellent vehicle to capture the movement in aluminum prices. Dahlman Rose maintains a Hold rating due to raw material cost headwinds at the company's US smelters and uncertainties regarding certain operations and growth initiatives. CENX is trading lower at $18.40