Kaiser Aluminum 2024 Shipments Fall on Supply Disruptions and Labor Strikes

Kaiser Aluminum

Packaging, Aerospace, and Automotive Volumes Drop Despite General Engineering Gains

Company Targets Recovery with New Warrick Roll Line in 2025

Kaiser Aluminum experienced a decline in aluminum product shipments in 2024 as supply chain bottlenecks, labor strikes, and shifting demand patterns disrupted major end markets. The company shipped 1.17 billion lbs of aluminum products, down from 1.2 billion lbs in 2023. Weaker demand from the packaging sector, which holds the largest share of Kaiser’s portfolio, was the primary driver of the decline.

Sector-Specific Headwinds Weigh on Results

Disruptions in 2024 reduced shipments to the packaging, aerospace, and automotive sectors. Packaging demand dropped sharply in the first half, reflecting a correction after pandemic-driven highs and destocking in prior years. Fourth-quarter packaging shipments rebounded, rising 9% year-on-year to 153 million lbs, and Kaiser expects this momentum to carry into 2025.

A strike by the International Association of Machinists and Aerospace Workers from September to November severely impacted aerospace output. Aerospace shipments fell by around 9 million lbs to 245 million lbs for the year, with Q4 showing the sharpest drop.

Similarly, a United Auto Workers strike reduced automotive extrusion shipments by 3% annually to 101 million lbs, with Q4 shipments declining 8% year-on-year.

General Engineering Provides Stability Amid Volatility

The general engineering sector was the lone bright spot, recording a 6% increase in deliveries to 289 million lbs in 2024. Shipments of plate, sheet, bar, and tube grew across all quarters, partially offsetting declines elsewhere.

Kaiser reported a 2% drop in annual revenue to $3.02 billion and a 7% decrease in profit to $41 million for the year. In Q4, sales rose 6% to $765 million, but quarterly profit fell over 12% to $7 million.

Looking ahead, Kaiser is banking on the ramp-up of its new roll line at Warrick, Indiana, which will begin shipments in Q2 2025 and is set to reach full production by the second half.