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Kaiser Aluminum |
Labor strikes and sector-specific demand shifts disrupt Kaiser Aluminum’s packaging, aerospace, and automotive shipments.
Kaiser Aluminum experienced a decline in total aluminum product shipments in 2024 due to major supply chain disruptions and shifting sector demand. The company’s full-year shipment volume fell to 1.17 billion lbs, down from 1.2 billion lbs in 2023. This decrease was largely attributed to a slump in the packaging sector, which holds the largest volume share in Kaiser’s product mix.
Packaging demand weakened significantly in the first half of the year. This reflected a correction from previous pandemic-related stockpiling. However, in a positive development, fourth-quarter shipments rose 9% year-on-year to 153 million lbs, hinting at potential recovery in 2025.
Sector-Specific Disruptions Drove Declines
Kaiser’s aerospace shipments fell by 9 million lbs to 245 million lbs in 2024. Notably, Q4 deliveries dropped to 60 million lbs, from 68 million lbs in the same period of 2023. The decline coincided with a labor strike by the International Association of Machinists and Aerospace Workers, which disrupted production from mid-September to early November.
In the automotive segment, a United Auto Workers strike that began on September 15 reduced extrusion demand. Full-year automotive shipments fell 3% to 101 million lbs, with Q4 volumes declining 8% to 22 million lbs. This marked another significant impact on overall performance.
General Engineering Remains a Bright Spot
Despite downturns in other areas, general engineering shipments increased 6% to 289 million lbs in 2024. Growth was recorded across all quarters, supported by strong demand for plate, sheet, bar, and tube products. This sector became a rare source of resilience in Kaiser’s portfolio.
The company expects further growth in 2025, citing upcoming shipments from its new roll line at the Warrick, Indiana plant, set to start in Q2 and reach full capacity by H2 2025.
Revenue and Profit Trends Reflect Operational Challenges
Despite shipment pressures, Kaiser posted quarterly revenue growth of 6% to $765 million. However, quarterly profit declined by over 12% to $7 million. Full-year revenue was $3.02 billion, down 2%, and net profit dropped 7% to $41 million.
While general engineering offers a path forward, Kaiser’s reliance on cyclical sectors and vulnerability to labor disputes highlight ongoing risks. The company’s 2025 performance will largely depend on demand stabilization and the success of its Indiana expansion.
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