Q1 2025 Kaiser Aluminum Corp Earnings Call

Speaker Change: Greetings and welcome to the Kaiser Aluminum Corporation, first quarter 2025 earnings call. At this time all participants are in a listen only mode, a question and answer session will follow the formal presentation.

Speaker Change: If anyone should require upward assistance during the conference, please press star zero on your telephone keypad As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Ms. Kim Orlando, with investor relations. Thank you, you may begin.

Speaker Change: Thank you, hello everyone, and welcome to Kaiser Aluminum's first quarter 2025 earnings conference call. If you have not yet seen a copy of our earnings release, please visit the Investor Relations page on our website at KaiserAluminum.com.

Speaker Change: We have also posted a PDF version of the slide presentation for this call.

Speaker Change: Joining me on the call today are Chairman, President, and Chief Executive Officer, Keith Harvey, and Executive Vice President and Chief Financial Officer, Neal West.

Speaker Change: for a summary of specific risk factors that could cause results to differ materially from the forward-looking statement.

Speaker Change: Please refer to the company's earnings release and reports filed with the Security and Exchange Commission, including the company's annual report on Form 10K for the full year ended December 31st, 2024.

Speaker Change: In addition, we have included non-GAAP financial information in our discussion. Reconciliation to the most comparable GAAP financial measures are included in the earnings release and in the appendix of the presentation.

Speaker Change: Reconciliation of certain forward-looking non-GAAP financial measures to comparable GAAP financial measures are not provided because certain items required for such reconciliation are outside of our control and or cannot be reasonably predicted or provided without unreasonable

Speaker Change: Any reference to Ibiza on our discussion today means adjust to Ibiza, which excludes non-run rate items for which we have provided reconciliations in the Appendix.

Speaker Change: Further, Slide 5 contains definitions of terms and measures that will be commonly used throughout today's presentation.

Speaker Change: At the conclusion of the company's presentation, we will open the call for questions.

Speaker Change: I would now like to turn the call over to Keith Harvey. Keith?

Keith Harvey: Thanks, Kim, and thank you all for joining us for a review of our first quarter 2025 results.

Turning to Slide 7.

We're off to a strong start to the year.

Keith Harvey: Despite ongoing volatility driven by recent trade policy actions, our end markets are tracking in line with the expectations we outlined in February , and our full-year outlook has improved with our solid first quarter results.

Keith Harvey: Operationally, we continue to drive positive results for our stakeholders with strengthening demand and effective cost management.

Keith Harvey: A major focus for us is on optimizing overhead across the business, staying true to Kaiser's core principle of being a low-cost producer.

Keith Harvey: Additionally, we've benefited from a favorable move in metal pricing which Neal will expand on shortly.

Keith Harvey: Overall, we're encouraged by the strong momentum we've established and remain confident in our ability to sustain it through the balance of 2025.

Keith Harvey: First, our fourth coding line at our Warwick Rolling Mill is currently undergoing commissioning and we'll be moving into the customer qualification phase soon.

Keith Harvey: This line plays a critical role in both our gross strategy and for the broader market, where demand for our products remains high and supply remains constrained.

Keith Harvey: Our customers are eagerly awaiting these coded products and we are fully committed to meeting that demand as fast as possible while upholding the exceptional quality standards that define Kaiser across all its end markets.

Second, our Trent Wood Phase 7 Investment Project is progressing smoothly.

Keith Harvey: Equipment has arrived on site and the team is currently conducting prep exercises to facilitate a seamless installation.

Keith Harvey: The Trent Wood team has mastered this process over the course of six major expansions over nearly two decades. Expanding our aerospace and general engineering, he treated plate capacity by greater than two and a half times.

Keith Harvey: The timing for this investment is ideal, as our key end markets are expected to recover over the next several quarters.

Keith Harvey: Together, these investments mark the next phase of growth for Kaiser.

Keith Harvey: We expect the result of these projects to drive a step change in our EBITDA and margin performance that we've previously outlined for the coming years, along with the continued pace of

Next, I'd like to address the topic of tariffs.

Keith Harvey: In the near term, we believe Kaiser is well positioned to navigate market volatility in the current environment.

Keith Harvey: Our geographic footprint and supply chain are predominantly North America and our contracts are designed to be metal neutral.

Keith Harvey: We're already seeing upside in in markets where uncertainty of supply and rising import fees and costs have increased demand for domestic products.

Keith Harvey: Additionally, our own supply lines have been reviewed and are well-diversified, providing us with ample flexibility.

Keith Harvey: Overall, we believe the current trade policy discussions taking place should have a neutral to modestly positive impact on Kaiser.

Keith Harvey: We will remain nimble and act diligently on these issues at trade as trade negotiations continue to evolve.

Keith Harvey: Longer term, reassuring as a trend we've been focused on since the COVID-19 pandemic.

and we're witnessing credible and tangible signs this is occurring.

Keith Harvey: Our geographic footprint gives us a strong advantage, and with the largest product offering of highly engineered aluminum products in the market, we are very well positioned to grow alongside our value customers.

Neal West: Now, let me turn the call over to Neal for more details on our first quarter results. Neal

Neal West: Thank you, Keith, and good morning, everyone. Before I begin, I'd like to remind everyone that effective January 1st, we changed our inventory valuation methodology from last then 1st out, or LIFO, to way the average cost.

Neal West: We believe this change better reflects the physical flow of inventory and changes in metal cost.

Neal West: For comparability purposes, we have recasted our 2023 and 2024 results to reflect the weighted-average cost methodology for those periods.

Neal West: Therefore, all year over year and comparisons to year end 2024 for this presentation and going forward, will be based on these recasted results.

Neal West: Please refer to our press release issue on April 2 for further details on this matter.

Neal West: I'll now turn to slide 9 for an overview of our shipments and conversion revenue.

Neal West: Conversion revenue for the first quarter was $363 million, a decrease of approximately $4 million, or 1% compared to the prior year period.

Neal West: Looking at each of our end markets in detail, aerospace and high-strength conversion revenue totaled $121 million, down $16 million or approximately 12%, reflecting a 10% decline in shipments over last year.

Neal West: As indicated, during our year-end earnings call, we expected our shipments to be impacted in a near-term from disruption stemming from commercial aircraft OEM order patterns, which affected the entire supply chain.

Neal West: While commercial aircraft OEM demand was down, our business threat defense and space demand remain strong.

Neal West: Packaging conversion revenue totaled $127 million. Up 9 million dollars are approximately 8% year-over-year on an improved mix of higher value-added

Neal West: Conversely, our shipments decline 9 percent due to a reduction in bear products as we begin to pivot towards higher volumes of coded material, work to finish commission our new row coatline and begin qualifying products with our customers.

Neal West: Aside from this short-term nuance, the underlying demand for our products remains strong, and we are working closely with our customers to prioritize production and deliveries as we move through this transition.

Neal West: General engineering conversion revenue for the first quarter was $84 million, a $3 million or 4% year-over-year on a 12% increase in shipments.

Neal West: broader market factors specifically around trade policies and their potential negative impact and import availability created a favorable environment in this and market driving higher demand and solid pricing.

Neal West: Our long-standing commitment to the delivery of high-quality Kaiser Select products, along with industry-leading service, continue to support our customers and garner a premium in the marketplace.

Neal West: And finally, Automotive Conversion Revenue with $32 million increased modestly by 2% year over year on a 9% decrease in shipments, primarily due to improved product mix of higher value added products.

Neal West: Additional details and conversion revenue shipments by end market applications can be found in the appendix of this presentation.

Moving to side 10.

Neal West: Reported operating income for the first quarter was $41 million hours.

Neal West: After adjusting for non-run rate costs of approximately $2 million, primarily restructuring costs associated with plant and corporate staffing reductions, are adjusted operating income is $43 million, up $18 million year over year.

Neal West: Our effective tax rate for the first quarter was 25%, compared to 23% in the first quarter of 2024 due primarily to the timing of certain tax credits.

Neal West: For the full year, 2025, we continue to expect our effective tax rate before discrete items to be an low to mid-twentieth cent range under current tax regulations.

Neal West: Additionally, we anticipate that 2025 cash tax payments for federal state and foreign taxes will be in the five to seven million dollar range.

Neal West: Reported net income for the first quarter was $22 million, or net income of $1.31 per duloaded share compared to net income of $18 million, or $1.12 net income per duloaded share in a prior quarter.

Neal West: After adjusting for non-run rate charges of approximately $2 million, adjusted that income for the first quarter, 2025, was $24 million.

Neal West: or adjusted income of $1.44 per due-looted share compared to adjusted net income of $10 million or adjusted income of $0.62 per due-looted share in a prior year period.

now turning the slide 11.

Neal West: Adjusted EBITDA for the first quarter was $73 million, up approximately $19 million from the prior year period.

Neal West: Adjusted EBITDA's percentage of conversion revenue improved by approximately 550 basis points from the first quarter of 2024 to 20.2%.

Neal West: The improvement in trusted EBITDA was driven by improved pricing and mix of higher value-added products, approximating $3 million as well as an increase in metal lag gain of about $16 million from the prior year period.

Neal West: The increase in the metal leg gain was driven primarily by the spike in Midwest transaction price following the announcement for increased aluminum tariffs earlier in a quarter.

Neal West: Furthermore, we continue to drive operational improvements by optimizing efficiencies, leveraging recent capital investments, executing strategic metal sourcing initiatives, and maintaining a disciplined approach to cost management across the business.

Neal West: Now, I'll turn to a discussion of our balance sheet and cash flow.

Neal West: On March 31, 2025, total cash of approximately $21 million and approximately $555 million of borrowing availability on our revolving credit facility.

Equated to a strong liquidity position of approximately $577 million hours.

Neal West: There were no borrowings under our revolving credit facility as of the quarter end and it currently remains undrawn [inaudible]

Neal West: As a reminder, our senior notes interest costs are fixed at $48 million annually and we have note that maturing until 2028.

Neal West: As of the end of the first quarter, our net debt leverage ratio improved to 3.9 times from the 4.3 times at year end, tracking towards our target leverage ratio of two to two and a half times.

Turning the Capitol allocation.

Neal West: We generated solid cash flow from operations of $57 million during the first quarter with our capital expenditures totaling $38 million, resulting in a free cash flow of approximately 19 million hours.

Neal West: As both projects are nearing completion are our well underway, we do not anticipate any material impact in our guidance from trade policy discussions.

Neal West: As a result, we expect to generate more than $100 million of free cash flow for the full year of 2025, driven by the relatively low capital expenditures and reduced working capital demand across the portfolio, which will drive further reduction in our net debt leverage.

Neal West: Finally, on April 15th, we announced that our Board of Directors declared a quarterly dividend of 77 cents per common share, reinforcing dirt confidence in our long-term strategy to drive increasing profitable growth and maximizing stockholder value.

Neal West: And now I'll turn a call back over to Keith to discuss our 2025 outlook, Keith.

Keith Harvey: Thanks, Neal. As we look ahead to the remainder of 2025, our outlook for all of our in-markets remains consistent with the outlook we provided during our February call.

Starting on slide 13 with arrow and high strength

Keith Harvey: The commercial aerospace supply chain is showing signs of regaining health.

Keith Harvey: Large commercial aircraft production is off to a better start in 2025 with new aircraft orders and deliveries having rebounded, fueling even stronger backlogs than before.

Speaker Change: For Kaiser specifically, steady customer order flow gives us confidence that any potential impact from short-term inventory imbalances or delays of certain deliveries due to trade-related actions will have minimal impact on our performance.

Speaker Change: Activity remains steady at strong levels in our defense, space, and business jet applications, just as it has for several quarters.

Let's move on to packaging on slide 14.

Speaker Change: We are commissioning our new row coat line after which we'll begin customer qualifications and the process of ramping production with the expectation of reaching full run rate levels late in the second half for 2025.

Speaker Change: This is fully in line with the expectations we shared on our February call.

Speaker Change: Importantly, the timing of this significant investment is highly favorable, following four consecutive quarters of constrained capacity for our products with the present North American production footprint unable to meet rising market demand.

Speaker Change: We are committed to bringing our new capacity online as quickly as possible to meet our customers growing needs.

Turning now to General Engineering on slide 15.

Speaker Change: We saw strong momentum in general engineering demand throughout the first quarter.

Speaker Change: In our long products, we remain encouraged by the steady improvements we are seeing in our order books, even with inventories in the supply chain, remaining at historic low levels.

Speaker Change: For heat treated sheet and plate products, we have been benefiting from trade-related uncertainty which is driving demand toward Kaiser and other domestic supply.

Speaker Change: Additionally, we expect the completion of our Phase 7 expansion project at our Tripwood Rolling Mill and the second half of this year will enable us to meet the growing needs of our customers for general engineering. He treated plate demand well into the future.

Finally, turning to Automotive on Slide 16.

We remain well-positioned and automotive.

Speaker Change: While it represents a smaller portion of our overall business, our strength lies in the specific platforms we serve, which are primarily SUVs and light truck in-use applications.

Argeographic footprint and alignment with these high-demand segments.

Speaker Change: Support ongoing stability and resilience in this end market despite the expectation for North American industry production to be flat to down modestly in 2025 versus last year.

Now turning to our summary outlook on Slide 17

Speaker Change: Given the recent market volatility, it's important to remind you of our philosophy and how we manage our company.

First, we've managed for the long term.

Speaker Change: which means quarterly results may be lumpy at times and progress may accelerate or pause as determined by market conditions and our resulting actions.

Speaker Change: Through it all, we will manage as we always have, with a long-term strategic focus on our served-in markets with differentiated products and services that meet or exceed the needs of our customers.

Speaker Change: Second, we maintain a discipline approach to capital allocation, to secure and improve our position with our customers, to meet their growing needs, and deliver long-term solid returns for our shareholders.

Speaker Change: Finally, we work diligently to minimize the risk to the overall business in any environment with the mantra that we manage for, not through economic diversity, which is the driving force for our focus on cost.

preferred market positions and financial strength with dynamic liquidity management.

Speaker Change: With that, our market outlook for 2025 remains unchanged at this time.

Speaker Change: We continue to project 5-10% growth year-over-year in conversion revenue for 2025.

Speaker Change: Additionally, we are raising our full year 2025 EBITDA expectations 5 to 10% above our recasted 2024 Adjusted EBITDA of $241 million.

Speaker Change: reiterating that earnings in the second half of the year, excluding the metal lag tell when in Q1, will be growing as our new investments come online. With that, I will now open the call to any questions you may have, Operator.

Speaker Change: Thank you. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue.

Speaker Change: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the start keys.

Speaker Change: Our first question comes from the line of Bill Peterson, with JP Morgan, please proceed with your question.

Bill Peterson: Yeah, good morning, everyone, and thanks for taking the questions. I have questions on the end of markets, but first I want to ask about margins and maybe the guidance before that. So I guess first of all, excluding the metal legs, what drove the quarter on quarter margin progression? Is this a matter of? [inaudible]

Speaker Change: and then for the guidance, if we think about, you know, the midpoint of the value added revenue, we need the guidance.

Speaker Change: Both up, I guess 7.5% at the midpoint.

Speaker Change: That would imply a year and year sort of flat margins at 16.5% and then you know step down I guess quarter on quarter into the back half of the year. So how should we think about the cadence and the trajectory of the I guess you know in terms of margins through the balance of the year.

Bill Peterson: Okay, hey, good morning, Bill. Hey, thanks for the question. So, you know, I think one of the things we want to make pretty clear on our outlook and how guidance we knew that we had made a, you know, an inventory change, a way that we look at that and the reasons we did that.

Bill Peterson: is through an analysis. We really felt that weighted average cost, it really better reflected.

Bill Peterson: You know, the management of inventory physically through our business and a more timely recognition of market price changes.

Bill Peterson: We recasted that and our recasted numbers really helped.

Bill Peterson: prove that analysis out and you'll see the cue in the cue comparison of how had we stayed on LIFO what the numbers would have looked like, especially in the first quarter as related to what we proved.

Bill Peterson: So that was the change that took place and and metal just happened to move in that quarter and the average over that period was relatively high and we had a tailwind on that and so we wanted to call that out and say okay that that transpired

Bill Peterson: but getting back to the core part of the business.

Bill Peterson: when you're looking at it. The quarter came in as we expected, and perhaps a little better than we expected, given the challenges that took place, you know, with all the tariff discussions and all this.

Bill Peterson: and just to give you a little bit of insight into that, when President Trump came out with the full-blown tariffs, we took a deep dive in the whole company and I think those could be the worst case at the time.

and we really convinced ourselves that our supply chain

is well positioned, we have flexibility of ability.

Bill Peterson: We most of our business as we said was focused on North American so that gave us a lot of confidence in that whatever we're going through right here is really going to be neutral to positive for Kaiser Aluminum.

Bill Peterson: And then we saw that in the order of structure that took place during the quarter, we started to see business start to navigate our way where historically it may have gone to imports and other things.

Bill Peterson: So overall we believe that situation bodes well for Kaiser.

Bill Peterson: Now, from a margin perspective, Bill, if you go back and you look, and we stated that the journey was recovering back to the mid-20s of our business, the mid-20% margin.

Bill Peterson: and we're at about 16 and a half now. You know, again, we haven't initiated the investments yet. They are just coming online.

Bill Peterson: and as we start to deploy those, you know, the crucibles of what we said, the returning back to that still hold true. So we see three to 400 basis points for the entire business coming up once we hit that full run rate.

Bill Peterson: We're starting to see the metal supply situation that we expected to deliver 150 to 200 basis points.

Bill Peterson: That started to normalize and recover into the first quarter with metal spreads that they were, so that's still on track.

Bill Peterson: and then we'll start getting back into the aerospace recovery with the new investment and then back to getting another additional 100 to 200 basis points on getting back the efficiencies in the operation. [inaudible]

Bill Peterson: So it still holds fruit, we're still focused on delivering up to mid 20s, mid to high 20s on the margin

Bill Peterson: on the on the on the pace of that right now we look at to be in the 16 to 17 some type margin but you know that that could experience itself as soon as we deliver these investments and and start supplying that business.

Speaker Change: Yeah, great. Thanks for that confidence and answer. I'd like to kind of walk through some of the end markets here and maybe starting with packaging and I think you know, you already were alluding to some of this but.

Speaker Change: You know, I guess how should we think about the shipments, you know, when we think about the first quarter of being down I think you talked about deep deep prioritizing you know bear products and focusing on coded but [inaudible]

Speaker Change: We assume a similar focus on coded and diurated, continuing the third quarter and then into the back half of the year.

Speaker Change: Yeah, I guess, you know, for this, I think you might imagine, but the 300 or 400 basis point, does this include the new packaging contracts kicking in during this course this year in a mixture? Sure.

Speaker Change: It will bill and it really starts to accelerate in 2026.

Speaker Change: So, we have new contracts, but as you know, we're finalizing a couple of major contracts. We made good progress during the quarter.

Speaker Change: and bringing those to fruition. But when we start delivering, you will start to see as our outlook has given.

We've stated some pretty hefty increases in our conversion revenue.

Speaker Change: and you will really start to see that ramping up in the second half of the year.

Speaker Change: We had pretty good improvement from the conversion revenue in the first quarter. That's on existing contracts and really just starting to gravitate to more in the first quarter of the higher margin coded.

Speaker Change: that really will start to come online in the second half. We talked in the second quarter, it's really going to be about proving the line, getting those customer qualifications, and then as quick as possible start to delivering product to customers.

Speaker Change: and so we're confident of that demand, we're confident of the need, we're not meeting needs of those customers yet, we want to hit that and we will, but you'll start seeing that ramp up in the second half very strongly as regards to packaging.

. . . .

Okay, thanks for that. And then...

Speaker Change: Maybe thinking about auto real quick, some of the third parties are talking about light auto production down, high single digits.

Speaker Change: I know you're on certain platforms, but I guess what gives you confidence that the trucks and SUVs can remain?

Speaker Change: You know, someone insulated and maybe if there is further weakness or weaker than you're expecting what kind of downside protection do you have and in some of your auto contracts and I guess are there any and maybe general engineer and other ones too if there's some broader weakness.

Speaker Change: Yes, so automotive is pretty interesting for us Bill. You know, as I said, we're on select programs, platforms.

Speaker Change: And you could take a look at the headlines that have been taking place. So we're really across all those platforms, especially around like trucks and SUVs.

Speaker Change: and while you may hear a certain manufacturer going down or...

Speaker Change: or slowing down somewhat. You see the other two competitors perhaps.

Speaker Change: strengthening shipments on light trucks and adding capacity. So we have strong positions in all of those and the parts that we supply really go across each one of those platforms.

Speaker Change: So and some of these are new platforms for us Bill. So that's what gives us confidence in our outlook even knowing that that the demand may soften through the year.

Speaker Change: And the other thing I'll add is that on the programs, you know, I think the last note or statistic I saw was we're still about 70 to 80% of the demand is on light trucks and SUVs.

Speaker Change: and so if even if it comes down, we're going to come down on that. The other components that we have that are more broad-based build they're like on any lot break systems, you know, the valves and things for those instructional components.

Speaker Change: Every car out there, whether it's an EV or an ICE vehicle, is going to have any log break systems.

So the programs that we're on, you know,

We could go down if the overall demand decreased but

Speaker Change: for these products, and that's coming through in our numbers in Q1, and we have new programs that are launching. So, I feel pretty confident about we should be able to weather the storm. You know, a reminder to you and all our others, the auto is our smallest, it's about 8% of our business.

Speaker Change: So, you know, we know that there still would be some impact, but the impact would be relatively small on us.

Speaker Change: and you brought up a good comment about General Engineering. I'm actually feeling pretty bullish about our position on General Engineering.

Speaker Change: You know, I was a little concerned when inventory levels started to move down.

Speaker Change: But even with, and sometimes we can see a month-a-month change with really high metal customers may try to get in orders that are, you know, have a lower metal cost, so you may see some walk in us in a month-a-month.

Speaker Change: But I've been tracking all of our orders on a daily basis.

Speaker Change: and the order rate continues to be good. I won't say it's super strong, you know, we set it at low inventories.

but we're really positioned well.

Speaker Change: in this market. We bring a broad product offering to this market. We mainly service it through service centers and some select customers through like semiconductor and other type of applications.

Speaker Change: and we're seeing some pretty good green shoots starting to come from that side of the business as well.

Speaker Change: And so with what's taking place with the trade policy discussions, I actually think it's a positive multiplier for Kaiser Aluminum on the general engineering side of the business.

Speaker Change: So, and the last thing, I know you didn't specifically ask it, but on the aerospace side.

Speaker Change: You know, we said in our February outlook that we were going to see the first half probably a little slower because of the inventory and supply chain issues that some of the folks were having. That's playing out for us as we expected.

Speaker Change: But we also see production beginning to ramp back up with their moving toward more build rates so it's in line and that's the reason we've reiterated our outlook for the full year.

Speaker Change: So overall, I would have to say, you know, we came out with a great quarter from my perspective, given the market environment we're in and then we raised expectations for the full year beyond that.

Speaker Change: So, you know, in the volatile world that we're in right now, I'm feeling pretty good about where our business currently lies.

Thank you.

Speaker Change: Yeah, actually, my last question was on error. I think, you know, you largely answered it, but just to be clear, I guess, where do you think we stand in the D stocky cycle in particular within commercial sounds like you're other three parts? [inaudible]

Speaker Change: of your aerospace are tracking at least the plan. Just trying to get a sense for us if you think about the trajectory and maybe exit rate this year on the aerospace side.

Speaker Change: Yeah, well the great thing that's going on, Bill, and it's data driven, you know, I said in my comments, so we're starting to see the build rates.

Speaker Change: Grot from where they were last year. And this is across, you know, both major air frameworks here.

Speaker Change: It's it's trekking as we expected so for instance on Boeing they're they're really moving toward the 38th rate. I think in in Kelly's comments he talked about moving to 42 before the end of the year.

Speaker Change: and then moving to 47 as quick as they can next year. So that's in alignment with where we saw all things beginning to ramp back up.

and so I think we're probably about…

Speaker Change: Midway. Through that, destocking. We expect to see continued orders. I think another thing from a Kaiser perspective.

Speaker Change: You know, on our contracts, we try to manage for the, you know, for the minimums and maximums that we provide. So we feel pretty confident.

Speaker Change: about where we are on that. And so I think we're going down the path as soon as those ramp rates begin to come back. I think you're going to see the supply chain get healthier as fast as they can ramp. And so I think you're going to see the supply chain get healthier as fast as they can ramp.

Bill Peterson: Great, thanks for taking you know all the questions we had and you know lost going on you know good luck navigating this sort of challenging macro and micro and we'll look forward to catch something. Thank you. Okay, thanks Bill. Appreciate that the in size.

[inaudible]

Speaker Change: Thank you. Ladies and gentlemen, if you'd like to join the question cue, please press star one under telephone keypad. We'll pause a moment to allow for any other questions.

Speaker Change: Mr. Harvey, I'm seeing no other questions. I'll turn the floor back to you for final comments.

Keith Harvey: Thank you, operator. We remain well positioned to deliver on our strategic growth plan following the largest investment cycle in our recent history.

Speaker Change: We believe strengthening market position, persistent focus on reducing costs and our steady de-leveraging. We're going to drive and prove value for all of our stakeholders.

Speaker Change: We thank you for your interest in Kaiser Aluminum and look forward to sharing our progress with you later this summer on our second quarter call. Goodbye.

Speaker Change: Thank you. This concludes today's conference call. You may disconnect your lines at this time. Thank you for your participation.