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Century Aluminum (CENX) Issues Update on Coronavirus Response

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Century Aluminum Company (CENX - Free Report) and the United Steel Workers Local (“USW”) 9423, which represents hourly employees at the Hawesville facility, agreed to extend the labor contract for one year. Notably, the extension of the contract, which is slated to expire on Apr 1, was ratified by the members of USW 9423 on Mar 23, 2020.  

The company also provided an update on its response to the coronavirus pandemic. Century Aluminum has implemented some temporary policies and practices at all of its facilities, which are aimed at keeping visitors and employees safe. It has instituted best practices to maintain a primary aluminum operation. The contingency plans will likely enable the company to operate facilities continuously amid the current challenges and potential near-to-mid-term headwinds. Presently, it does not expect any impediment to maintain operation at all of its plants.

Century Aluminum is implementing various measures such as lowering its cost structure. Moreover, it is taking actions to boost liquidity and mitigate risks. The company suspended all types of discretionary spending, including capital spending, optimizing working capital and taking other measures to lower costs. It will continue adapting policies, strategies and actions in tandem with the development of the situation.

Century Aluminum’s shares have tumbled 55.2% in the past year compared with the industry’s 45.6% decline.

 



 

Zacks Rank & Key Picks

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

A few better-ranked stocks in the basic materials space are Newmont Corporation (NEM - Free Report) , Franco-Nevada Corporation (FNV - Free Report) and Novagold Resources Inc. (NG - Free Report) , all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Newmont has an expected earnings growth rate of 72% for 2020. The company’s shares have gained 33.6% in the past year.

Franco-Nevada has an expected earnings growth rate of 37.6% for 2020. Its shares have returned 43.8% in the past year.    

Novagold has an expected earnings growth rate of 11.1% for fiscal 2020. The company’s shares have surged 83.9% in the past year.

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