U.S. Markets closed

Century Aluminum Halts Production at Sebree Smelter Potline

Zacks Equity Research
1 / 3

Earnings Estimates Rising for Asbury Automotive (ABG): Will It Gain?

Asbury Automotive (ABG) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

Century Aluminum Company’s CENX fully-owned subsidiary — Century Aluminum Sebree LLC — was forced to halt production on one of its three potlines temporarily because of an electrical failure at the Sebree aluminum smelter.  

The company is assessing the impacts of these events but expects to restore full production of the affected potline within the next three months. Moreover, it projects that the production lost from these incidents to be less than 18,000 tons. Century Aluminum also anticipates that losses arising from the events will be covered under its insurance policies.  

The stock has rallied 28.2% in the past six months, significantly outperforming the industry’s 11.1% decline.


Century Aluminum incurred a loss of $0.3 million in first-quarter 2018 against a loss of $15.1 million in the year-ago period. Barring one-time items, Century Aluminum’s adjusted loss was 4 cents per share in the quarter, which was narrower than the Zacks Consensus Estimate of a loss of 23 cents.

The company is seeing strong industry fundamentals and attractive demand growth in most global regions. It expects significant opportunity in the U.S. market over the coming years along with limited exemptions from tariffs.

The company also plans to restart the three potlines at its Hawesville plant and complete several capital projects required to help the plant achieve full-production capacity again. The plant is anticipated to return to full capacity by early 2019.

Century Aluminum Company Price and Consensus

Century Aluminum Company Price and Consensus | Century Aluminum Company Quote

Zacks Rank & Stocks to Consider

Century Aluminum currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks worth considering in the industrial products space include Terex Corporation TEX, Applied Industrial Technologies, Inc. AIT and Graco Inc. GGG, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Terex has an expected long-term earnings growth rate of 21%. Its shares have gained 21.3% in a year.

Applied Industrial has an expected long-term earnings growth rate of 12%. Its shares have moved up 11% in a year.

Graco has an expected long-term earnings growth rate of 10.3%. Its shares have rallied 24% in a year.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Terex Corporation (TEX) : Free Stock Analysis Report
Applied Industrial Technologies, Inc. (AIT) : Free Stock Analysis Report
Graco Inc. (GGG) : Free Stock Analysis Report
Century Aluminum Company (CENX) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research