8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549  

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of Earliest Event Reported): February 17, 2009

KAISER ALUMINUM CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Delaware	0-52105	94-3030279
(State or Other Jurisdiction	(Commission	(I.R.S. Employer
of Incorporation)	File Number)	Identification No.)

27422 Portola Parkway, Suite 350
Foothill Ranch, California	92610-2831
(Address of Principal Executive Offices)	(Zip Code)

(949) 614-1740
(Registrant’s telephone number, including area code)

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))  

Item 2.02. Results of Operations and Financial Condition.          

On February 17, 2009, Kaiser Aluminum Corporation (the “Company”) issued a press release reporting its financial results for the quarter and year ended December 31, 2008. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K, and is incorporated by reference into this Item 2.02.

Item 7.01. Regulation FD Disclosure.

As previously disclosed in the Company’s press release dated January 15, 2009, the Company is hosting its quarterly earnings conference call on February 18, 2009 at 10:00 a.m. Pacific. Exhibit 99.2 is a copy of the presentation slides to be furnished at, and to be posted on the Company’s website in connection with, the quarterly earnings conference call.

The information contained in the presentation shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (“Exchange Act”), or otherwise subject to liability of that section. In addition, this information shall not be incorporated by reference into any registration statement or other document filed under the Securities Act, or the Exchange Act, regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in the filing.

Item 9.01. Financial Statements and Exhibits.

       (d) Exhibits .

Exhibit
Number	Description
99.1	Press release dated February 17, 2009.
99.2	Earnings conference call presentation dated February 18, 2009.

 

SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

KAISER ALUMINUM CORPORATION (Registrant)
By:	/s/ John M. Donnan
	John M. Donnan
	Senior Vice President, Secretary and General Counsel

Date: February 18, 2009

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Kaiser Aluminum Corporation Reports Fourth Quarter and
Full-Year 2008 Financial Results

• Record Full-Year Shipments of Aerospace and High Strength Products

• 2008 Consolidated Operating Income of $116 Million Before Previously Announced Charges

• Strong Balance Sheet, Continued Financial Strength and Liquidity

• Focused Strategic Investment Initiatives Proceeding on Plan

FOOTHILL RANCH, Calif., February 17, 2009 – Kaiser Aluminum Corporation (NASDAQ:KALU) today reported a net loss of $108 million for the fourth quarter ended December 31, 2008, reflecting $192 million of previously announced non-run-rate (NRR) and predominately non-cash charges.

For the year ended 2008, the Company reported a net loss of $69 million compared to net income of $101 million for the year ended 2007. Excluding the impact of $207 million of non run-rate items reported for the full-year, adjusted 2008 net income and earnings per diluted share were $63 million and $3.09, respectively.

	Fourth Quarter						Full Year
	2008			2007			2008			2007
Net Sales	$	327		$	361		$	1,508		$	1,505
% change from prior yr		-9	%					0	%
Operating Income (OI) before NRR1
Fabricated Products	$	25		$	40		$	142		$	167
Primary Aluminum	$	15		$	10		$	20		$	39
Corporate	$	(9	)	$	(12	)	$	(46	)	$	(50	)
Consolidated OI before NRR1,2	$	31		$	39		$	116		$	156
NRR Items1		($192	)	$	4			($207	)	$	26
Reported Oper (Loss) Income		($161	)	$	43			($91	)	$	182
Net (Loss) Income		($108	)	$	24			($69	)	$	101
EPS (diluted, GAAP)								($3.43	)	$	4.97
Adjusted EPS3							$	3.09

¹ NRR = Non Run Rate, ² Totals may not sum due to rounding, ³ est. EPS excluding NRR items, net of tax

2008 Summary Comments

“Our 2008 underlying results were solid on the strength of record shipments of aerospace and high strength products due to strong demand and completion of the Trentwood heat treat plate capacity expansion. Although full-year operating results were negatively impacted by higher energy costs and by manufacturing inefficiencies related to the implementation of strategic investment and product development initiatives, Fabricated Products operating income before non-run-rate items was the second best year in our history,” said Jack A. Hockema, President, CEO and Chairman.

“We continue to make significant progress on our strategic investment initiatives to position the Company for long-term growth and operational efficiency, and we expect our strong balance sheet and liquidity to provide financial flexibility to manage through a challenging economic environment,” said Mr. Hockema.

Fourth Quarter 2008

Consolidated net sales for the fourth quarter ended December 31, 2008, were $327 million, compared to $361 million reported in the prior year quarter. Net sales were favorably impacted by strong shipments of aerospace and defense products but were offset by a precipitous decline in industrial production and automotive demand applications.

The Company reported a fourth quarter operating loss of $161 million compared to operating income of $43 million in the prior year period. Consolidated operating income before non-run-rate items decreased to $31 million in the fourth quarter of 2008, compared to $39 million reported in the prior year quarter. Fourth quarter 2008 results were negatively impacted by significant non-run-rate and predominately non-cash charges previously announced in the Company’s January 15, 2009 news release. On a consolidated basis the fourth quarter 2008 reflected unfavorable non-run-rate items of $192 million compared to $4 million of favorable non-run-rate items in the prior year period.

Full-Year 2008 Consolidated Financial Results

For the year ended December 31, 2008, consolidated net sales increased slightly to $1,508 million compared to $1,505 million for the prior year. The increase reflects higher shipments and higher value-added pricing in Fabricated Products, which was largely offset by the effect of lower shipments in Primary Aluminum as a result of the outage at Anglesey during 2008.

The Company reported an operating loss of $91 million for the year ended December 31, 2008 compared to operating income of $182 million for the prior year. The 2008 operating loss reflects non-run-rate and predominately non-cash items of $207 million which were comprised of the following:

• Unrealized mark-to-market losses of $87 million on derivative positions and a lower of cost-or-market inventory write-down of $66 million primarily due to a severe decline in metal prices;

• An impairment charge of $38 million to write-off the Company’s 49% equity investment in Anglesey;

• Restructuring charges of $9 million related to the previously announced shut-down of the Tulsa, OK facility and reductions at the Bellwood, VA facility; and

• Other non-run-rate items of $7 million, primarily related to legacy environmental costs.

Fabricated Products

	Fourth Quarter						Full Year
	2008			2007			2008			2007
Shipments (lbs, mm)		123			135			559			548
% change from prior yr		-9	%					2	%
Net Sales (in $ mm)	$	294		$	313		$	1,337		$	1,298
% change from prior yr		-6	%					3	%
Avg. Realized Price / Lb.	$	2.39		$	2.32		$	2.39		$	2.37
Operating Income ($ mm)
Oper Income before NRR1	$	25		$	40		$	142		$	167
NRR items1	$	(74	)	$	(1	)	$	(89	)	$	2
Reported Operating (Loss) Income2		($49	)	$	40		$	54		$	169

¹ NRR = Non Run Rate, ² Totals may not sum due to rounding

Fabricated Products reported an operating loss of $49 million for the fourth quarter 2008 compared to $40 million of operating income in the prior-year period. Operating income before non-rate-run items was $25 million in the fourth quarter of 2008 compared to $40 million in the prior year quarter, reflecting strong aerospace and high strength shipments more than offset by a decline in demand for automotive and general industrial applications as well as heavy destocking among distributors and across the supply chain. In addition, the severity of winter weather placed significant limitations on our Trentwood facility’s production and shipments during the month of December.

In December 2008, the Company took actions to reduce production and resources in response to lower demand for general engineering and automotive applications and announced the shutdown of its Tulsa, OK facility and reductions at its Bellwood, VA facility. The benefits of these actions should be reflected in 2009.

For the year ended December 31, 2008, operating income was $54 million compared to $169 million for the comparable period in 2007. Operating income before non-run-rate items was $142 million in 2008 compared to $167 million for the full-year 2007 reflecting stronger value-added sales, which was more than offset by higher energy related costs, manufacturing inefficiencies and major maintenance and depreciation expense.

During the year, the Company completed the final phase of the Trentwood heat treat plate capacity expansion which along with strong aerospace and defense demand drove record shipments in 2008. In addition, the Company continued to implement its strategic growth initiatives including equipment and facility upgrades to improve manufacturing and cost efficiencies, expanding product capabilities and continuing progress on its Kalamazoo project to improve the rod and bar value stream.

Primary Aluminum

	Fourth Quarter					Full Year
	2008			2007		2008			2007
Shipments (lbs, mm)		35			39		133			157
% change from prior yr		-9	%				-15	%
Net Sales (in $mm)	$	33		$	47	$	171		$	206
% change from prior yr		-30	%				-17	%
Avg. Realized Price / Lb.	$	0.94		$	1.23	$	1.29		$	1.31
Operating Income ($mm)
Oper Income before NRR1	$	15		$	10	$	20		$	39
NRR Items1	$	(119	)	$	4	$	(119	)	$	8
Reported Operating (Loss) Income2	$	(104	)	$	15	$	(100	)	$	47

¹ NRR = Non Run Rate, ² Totals may not sum due to rounding

Fourth quarter and full-year 2008 operating results in the Primary Aluminum segment were negatively impacted by lower production resulting from the outage at Anglesey as well as $119 million of non-run-rate items related to mark-to-market losses on metal and currency derivative positions and a $38 million impairment charge reflecting the previously announced planned full curtailment of the Anglesey smelter operations upon expiration of the power contract in September 2009. The impact of these items resulted in an operating loss of $100 million for the year ended December 31, 2008 compared to operating income of $47 million in the prior year.

As a result of Anglesey’s inability to obtain affordable power, the planned full curtailment of smelter operations in September 2009, and expected cash requirements for redundancy and pension payment obligations, the Company does not expect to recognize future operating results from Anglesey unless it can determine that those results will be recoverable through the receipt of dividends. The Company has no requirement to make future cash investments in Anglesey.

Corporate Highlights

During 2008, the Company utilized cash and revolver borrowings to fund higher levels of working capital primarily related to inventory builds in advance of planned equipment upgrades, investments in strategic capital projects and cash distributions to shareholders through dividends and share repurchases.

The Company continues to maintain a strong balance sheet and access to its committed revolving credit facility. Operating cash flow is expected to remain solid throughout 2009 assuming no further significant deterioration in economic conditions.

Progress continues on the new world-class facility in Kalamazoo, a core component of the Company’s business strategy which is expected to yield significant efficiencies in the rod and bar value stream. Production is scheduled to fully commence in early 2010.

Summary Comments/Outlook

“Although the current economic environment is challenging, we expect that demand for our portfolio of aerospace and defense products will continue to be robust in 2009,” said Mr. Hockema. “The outlook for our ground transportation and industrial applications is less certain as these markets have been severely impacted by the current recession. We expect significant destocking to exacerbate the impact on demand for these applications at least through the first quarter of 2009.”

“Our financial position is strong and we are well positioned to pursue priority strategic initiatives while we manage through this period of economic uncertainty. We will continue to act promptly to flex production consistent with changing demand levels, and we will continue to focus on improving manufacturing efficiency and underlying cost performance. Overall, our financial and competitive strength will serve us well as we navigate a challenging economic environment in 2009,” said Mr. Hockema.

Conference Call

Kaiser Aluminum Corporation will host a conference call on February 18, 2009, at 10:00am (Pacific Time); 12:00pm (Central Time); 1:00pm (Eastern Time), to discuss fourth quarter and full-year 2008 results. To participate, call the conference call line at (877) 719-9795. A link to the simultaneous web cast can be accessed on the Company’s website at http://investors.kaiseraluminum.com/events.cfm. A copy of a presentation will be available for download prior to the start of the call. A replay of the conference call will be available at the same website location until March 18, 2009.

Kaiser Aluminum Corporation, headquartered in Foothill Ranch, Calif., is a leading producer of fabricated aluminum products, serving customers worldwide with highly-engineered solutions for aerospace and high-strength, general engineering, and custom automotive and industrial applications. The Company’s North American facilities annually produce more than 500 million pounds of value-added sheet, plate, extrusions, forgings, rod, bar and tube products, adhering to traditions of quality, innovation and service that have been key components of our culture since the Company was founded in 1946. The Company’s stock is included in the Russell 2000^® index. For more information, please visit www.kaiseraluminum.com.

Non-GAAP Financial Measures

This earnings release contains certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets or statements of cash flow of the company. Pursuant to the requirements of Regulation G, the Company has provided reconciliation of non-GAAP financial measures to the most directly comparable financial measure in the accompanying tables.

The non-GAAP financial measures used within this earnings release are operating profit, net income (loss) and earnings (loss) per diluted share, excluding non-run-rate and non-operating gains and losses. These measures are presented because management uses this information to monitor and evaluate financial results and trends and believes this information to also be useful for investors.

This press release contains statements based on management’s current expectations, estimates and projections that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 involving known and unknown risks and uncertainties that may cause actual results, performance or achievements of the Company to be materially different from those expressed or implied. Kaiser Aluminum cautions that such forward-looking statements are not guarantees of future performance or events and involve significant risks and

uncertainties and actual events may vary materially from those expressed or implied in the forward-looking statements as a result of various factors. These factors include: (a) disruption in global financial markets that has reduced the liquidity available to the Company, our customers, our suppliers and the purchasers of products that materially affect demand for our materials, including commercial airlines; (b) a substantially weakened banking and financial system with increasing risk and exposure to the impact of non-performance by banks committed to provide financing, hedging counterparties, insurers, customers and suppliers, including the Company’s lenders with funding commitments under the Company’s revolving credit facility; (c) extreme volatility in commodity prices reflected most recently by broad and unprecedented declines that materially impact the results of our hedging strategies, increase near term cash margin requirements, reduce the value of our inventories and borrowing base under our revolving credit facility and result in substantial non-cash charges as we adjust inventory values and mark-to-market our hedge positions; (d) substantial reductions in consumer spending that reduce the demand for applications that use our products; (e) the rapid destocking of inventory levels throughout the supply chain in response to reduced demand and increasing uncertainty; (f) reduced customer demand under existing contracts resulting in customers limiting purchases to contractual minimum volumes or seeking relief from contractual obligations; (g) increasing risk that customers and suppliers may liquidate or seek protection under federal bankruptcy laws and reject existing contractual commitments; (h) difficulty successfully executing our strategy of growth through acquisitions; (i) the possibility of additional plant closures or reductions in response to a prolonged or increased reduction in demand for our products; (j) pressure to reduce defense spending and demand for our products used in defense applications as the U.S. and other governments are faced with competing national priorities; (k) the inability to predict with any certainty the effectiveness and long term impact of economic stimulus plans; (l) changes in economic or aluminum industry business conditions generally; (m) changes in the markets served by the Company, including aerospace, defense, general engineering, automotive, distribution and other markets, including changes impacting the volume, price or mix of products sold by the Company and the Company’s ability to flex production consistent with changing demand levels; (n) the Company’s ability to complete its expansion and organic growth projects, equipment and facility upgrades to improve manufacturing and cost efficiencies and product expansions as planned and by targeted completion dates; (o) the Company’s ability to effectively address energy related costs and operating inefficiencies through surcharges and other initiatives; (p) the Company’s ability to meet contractual commitments and obligations to supply products meeting required specifications; (q) changes in competitive factors in the markets served by the Company; (r) developments in technology used by the Company, its competitors or its customers; (s) changes in accounting that may affect the Company’s reported earnings, operating income or results; (t) completion of the audit of the Company’s financial statements as of and for the year ended December 31, 2008 by the Company’s independent registered public accountants; and (u) other risk factors summarized in the Company’s reports filed with the Securities and Exchange Commission, including, when filed, the Company’s Form 10-K for the year ended December 31, 2008. As more fully described in these reports, “non-run-rate” items are items that, while they may occur from period to period, are particularly material to results, impact costs primarily as a result of external market factors and may not occur in future periods if the same level of underlying performance were to occur. All information in this release is as of the date of the release. The Company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the Company’s expectations.

Investor Relations Contact:
Melinda C. Ellsworth
Kaiser Aluminum
(949) 614-1757

Public Relations Contact:
Geoff Mordock
Fleishman-Hillard
(323) 762-1818

KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

STATEMENTS OF CONSOLIDATED INCOME (LOSS)^{(1) (2)}
(Unaudited)
(In millions of dollars except share and per share amounts)

	Quarter Ended						Year Ended
	December 31,						December 31,
	2008			2007			2008			2007
Net sales	$	326.5		$	360.5		$	1,508.2		$	1,504.5
Costs and expenses:
Cost of products sold:
Cost of products sold, excluding depreciation and other items		356.5			296.7			1,400.7			1,251.1
Lower of cost or market inventory write-down		65.5			—			65.5			—
Impairment of investment in Anglesey		37.8			—			37.8			—
Restructuring costs and other charges		8.8			—			8.8			—
Depreciation and amortization		3.9			3.6			14.7			11.9
Selling, administrative, research and development, and general		14.8			17.1			73.1			73.1
Other operating (benefits) charges, net		(.2	)		.1			(1.4	)		(13.6	)
Total costs and expenses		487.1			317.5			1,599.2			1,322.5
Operating (loss) income		(160.6	)		43.0			(91.0	)		182.0
Other income (expense):
Interest expense		(.2	)		(2.1	)		(1.0	)		(4.3	)
Other income (expense), net		(.3	)		.6			.7			4.7
(Loss) income before income taxes		(161.1	)		41.5			(91.3	)		182.4
Income tax benefit (provision)		52.8			(17.1	)		22.8			(81.4	)
Net (loss) income	$	(108.3	)	$	24.4		$	(68.5	)	$	101.0
Earnings per share — Basic:
Net (loss) income per share	$	(5.56	)	$	1.22		$	(3.43	)	$	5.05
Earnings per share — Diluted :
Net (loss) income per share	$	(5.56	)	$	1.20		$	(3.43	)	$	4.97
Weighted average number of common shares outstanding (000):
Basic		19,490			20,030			19,980			20,014
Diluted		19,490			20,374			19,980			20,308

(1)	The consolidated financial statements include the statements of the Company and its wholly owned subsidiaries and a 49% interest in Anglesey Aluminium Limited (“Anglesey”), which owns an aluminum smelter in the United Kingdom.
(2)	Please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, for additional detail regarding the items in the table.

KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

SELECTED OPERATIONAL AND FINANCIAL INFORMATION ^{(1) (2)}
(Unaudited)
(In millions of dollars except shipments and average realized third-party sales price)

	Quarter Ended						Year Ended
	December 31,						December 31,
	2008			2007			2008			2007
Shipments (millions of pounds):
Fabricated Products		122.9			134.7			558.5			547.8
Primary Aluminum		35.1			38.6			133.1			157.2
		158.0			173.3			691.6			705.0
Average Realized Third Party Sales Price (per pound):
Fabricated Products	$	2.39		$	2.32		$	2.39		$	2.37
Primary Aluminum	$	0.94		$	1.23		$	1.29		$	1.31
Net Sales:
Fabricated Products	$	293.5		$	313.0		$	1,336.8		$	1,298.3
Primary Aluminum		33.0			47.5			171.4			206.2
Total Net Sales	$	326.5		$	360.5		$	1,508.2		$	1,504.5
Segment Operating (Loss) Income:
Fabricated Products	$	(48.8	)	$	39.7		$	53.5		$	169.0
Primary Aluminum		(103.5	)		14.7			(99.7	)		46.5
Corporate and Other		(8.4	)		(11.3	)		(46.2	)		(47.1	)
Other Operating Benefits (Charges), Net		.1			(.1	)		1.4			13.6
Total Operating (Loss) Income	$	(160.6	)	$	43.0		$	(91.0	)	$	182.0
Net (Loss) Income	$	(108.3	)	$	24.4		$	(68.5	)	$	101.0
Capital Expenditures, (net of change in accounts payable and note payable)	$	25.2		$	18.7		$	86.2		$	61.8

(1)	The consolidated financial statements include the statements of the Company and its wholly owned subsidiaries and a 49% interest in Anglesey Aluminium Limited (“Anglesey”), which owns an aluminum smelter in the United Kingdom.
(2)	Please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, for additional detail regarding the items in the table.

KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED BALANCE SHEETS ^{(1) (2)}
(Unaudited)
(In millions of dollars, except per share amount)

	December 31,			December 31,
	2008			2007
Assets
Current assets (3)		445.9			454.6
Investments in and advances to unconsolidated affiliate		—			41.3
Property, plant, and equipment — net		296.7			222.7
Net assets in respect of VEBA(s)		56.2			134.9
Deferred tax assets — net		313.3			268.6
Other assets		33.3			43.1
Total	$	1,145.4		$	1,165.2
Liabilities & Stockholders’ Equity
Current liabilities (4)		235.0			165.4
Net liability in respect of VEBA		14.0			—
Long-term liabilities		65.3			57.0
Revolving credit facility and other long-term debt		43.0			—
Stockholders’ equity:
Common stock		.2			.2
Additional capital		958.6			948.9
Retained earnings		34.1			116.1
Common stock owned by Union VEBA subject to transfer restrictions, at reorganization value		(116.4	)		(116.4	)
Treasury stock, at cost, 572,700 shares at December 31, 2008		(28.1	)		—
Accumulative other comprehensive loss (5)		(60.3	)		(6.0	)
Total stockholders’ equity		788.1			942.8
Total	$	1,145.4		$	1,165.2

(1)	The consolidated financial statements include the statements of the Company and its wholly owned subsidiaries and a 49% interest in Anglesey Aluminium Limited (“Anglesey”), which owns an aluminum smelter in the United Kingdom.
(2)	Please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008 for additional detail regarding the items in the table.
(3)	Primarily includes Cash and cash equivalents of $.2 and $68.7, Inventories of $172.3 and $207.6, net Trade receivables of $98.5 and $96.5, and prepaid expenses and other current assets of $145.6 and $66.0 at December 31, 2008, and December 31, 2007, respectively.
(4)	Primarily includes Accounts payable of $52.4 and $70.1, Accrued salaries, wages and related expenses of $41.2 and $40.1 and Other accrued liabilities of $113.9 and $36.6 at December 31, 2008, and December 31, 2007, respectively.
(5)	The increase in Accumulative other comprehensive loss is primarily due to pension adjustments in 2008 to reflect the actual funded status of VEBAs at December 31, 2008.

Reconciliation of Non-GAAP Measures

The following table presents a reconciliation of non-GAAP measures presented in the earnings release for the year ended December 31, 2008:

	Fabricated			Primary
	Products			Aluminum			Corporate			Consolidated
GAAP operating income (loss)	$	53.5		$	(99.7	)	$	(44.8	)	$	(91.0	)
Mark to market losses		(5.7	)		(81.4	)		—			(87.1	)
Impairment of investment in Anglesey		—			(37.8	)		—			(37.8	)
Lower of cost or market inventory write-down		(65.5	)		—			—			(65.5	)
Restructuring costs and other charges		(8.8	)		—			—			(8.8	)
Other non-run-rate items (1)		(8.9	)		—			1.5			(7.4	)
Total non-run-rate adjustments		(88.9	)		(119.2	)		1.5			(206.6	)
Operating income (loss), excluding no-run-rate items	$	142.4		$	19.5		$	(46.3	)	$	115.6
GAAP net loss										$	(68.5	)
Total non-run-rate adjustments (net of tax)											(131.2	)
Net income, excluding non-run-rate adjustments (net of tax)										$	62.7
Diluted loss per share (GAAP)										$	(3.43	)
Diluted income per share, excluding no-run-rate items										$	3.09

(1) Other non-run-rate items represent non-cash LIFO charges, metal gains (losses) and pre-emergence related environmental costs for the Fabricated Products segment and primarily bad debt recoveries from pre-emergence write-offs for the Corporate segment.

EX-99.2

Exhibit 99.2

Fourth Quarter and Full-Year 2008 Earnings Conference Call February 18, 2009

2 The information contained in this presentation includes statements based on management's current expectations, estimates and projections that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include statements regarding the company's anticipated financial and operating performance, relate to future events and expectations and involve known and unknown risks and uncertainties. For a summary of specific risk factors that could cause results to differ materially from those expressed in the forward-looking statements, please refer to the company's earnings release for the fourth quarter and full- year ended December 31, 2008, and reports filed with the Securities and Exchange Commission. All information in this presentation is as of the date of the presentation. The company undertakes no duty to update any forward- looking statement to conform the statement to actual results or changes in the company's expectations.

3 Non-run-rate items to us are items that, while they may recur from period to period, (1) are particularly material to results, (2) impact costs as a result of external market factors and (3) may not recur in future periods if the same level of underlying performance were to occur. These are certainly part of our business and operating environment but are worthy of being highlighted for the benefit of the users of our financial statements. Management's intent is to significantly neutralize the Fabricated Products segment from fluctuations in underlying metal prices. We characterize "metal profits" and LIFO charges as non-run-rate items that eventually offset to a great extent over the course of a full year. Further, presentations including such terms as net income or operating income "before non-run-rate" or "after adjustments" are not intended to be (and should not be relied on) in lieu of the comparable caption under generally accepted accounting principles ("GAAP") to which it is reconciled. Such presentations are solely intended to provide greater clarity of the impact of certain material items on the GAAP measure and are not intended to imply such items should be excluded.

4 Jack Hockema President, CEO and Chairman

2008 Highlights 5 Solid Underlying Operating Income and Continued Financial Strength Consolidated operating income of $116 million excluding significant previously announced non-run-rate and predominately non-cash charges Record full year heat treat plate shipments Strong demand enabled solid results from plants supplying products for aerospace and defense applications Negative impact from high energy costs and manufacturing inefficiencies resulting in higher costs and inventory levels Maintained strong balance sheet while investing in growth and returning cash to investors Invested $93 million in capital projects Returned $45 million in cash to shareholders

6 Dan Rinkenberger Senior Vice President and Chief Financial Officer

7 Financial Highlights - Consolidated Solid fourth quarter underlying results despite challenging environment Full year operating income before NRR1 of $116 million on relatively flat revenue reflecting: Strong aerospace and defense demand Higher energy costs Manufacturing inefficiencies Recessionary fourth quarter demand 2008 resulted in a net loss of ($69) million or ($3.43) per share reflecting the impact of NRR1 items. Adj. EPS (before NRR items) of $3.09/share Cash income taxes were ~$9 million; the 2008 effective tax rate was 25% Underlying Operating Income Remained Strong 1 NRR is an abbreviation for Non-Run-Rate; see 10-K for more details on NRR items 2 Totals may not sum due to rounding 3 Estimated EPS excluding the impact of NRR items, net of tax

8 Non-Run-Rate Items Full year reported operating income of ($91) million included NRR1 charges of ($207) million Mark-to-market loss of ($87) million in 2008 primarily related to a severe decline in metal prices LCM charge of ($66) million due to lower metal prices Impairment charge of ($38) million to write-off the investment in Anglesey Restructuring charges of ($9) million related to the shut down of the Tulsa facility and reductions at Bellwood Other NRR1 items of ($7) million2 Incurred Significant Predominately Non-Cash Charges in 2008 1 NRR is an abbreviation for Non Run Rate; see 10-K for more details on NRR items 2 Other NRR items include LIFO inventory charges, legacy environmental costs, VEBA benefit, and other operating income. 3 Totals may not sum due to rounding

9 Fabricated Products Cost Pressures Offset the Impact of Higher Value-Added Sales Fourth Quarter Aerospace and High Strength shipments up approximately 20% over prior year Shipments of other products down 19% versus prior year Full Year 2008 Shipments up slightly from prior year Record heat treat plate shipments for year 2nd highest operating income (before NRR1) in history $142 million in operating income (before NRR1) in 2008, down $25 million from 2007 $25 million - value-added sales ($24) million - manufacturing inefficiency ($17) million - energy, freight & currency ($5) million - major maintenance & depr. ($4) million - other costs 1 NRR is an abbreviation for Non-Run-Rate; see 10-K for more details on NRR items 2 Totals may not sum due to rounding

10 Sales Analysis By Application Record Results in the Aerospace & High Strength Markets Fourth Quarter Record Aerospace & High Strength shipments and value-added revenue2 Weak automotive and industrial end use demand exacerbated by destocking through the entire supply chain Full Year 2008 Record Aero/HS shipments Strong General Engineering value added revenue Record overall value added revenue per pound 1 Includes automotive, custom products and billet 2 Value added revenue = Net sales less hedged cost of alloyed metal 3 Totals may not sum due to rounding

11 Primary Aluminum Revenue and operating income (before NRR1) negatively impacted by lower production resulting from the mid-year outage at Anglesey Non-cash mark-to-market loss of $81 million reverses a $8 million mark-to- market gain in 2007 Recognized a $38 million asset impairment charge in Q408 reflecting previously announced plan to fully curtail Anglesey's smelting operations upon expiration of the power contract in September 2009 Anglesey Outage and Announced Curtailment of Smelter Operations Impacted Results 1 NRR is an abbreviation for Non-Run-Rate; see 10-K for more details on NRR items 2 Totals may not sum due to rounding

2008 Cash Sources and Uses 2008 Cash requirements funded with existing cash, solid operating cash flows and modest revolver borrowings Capital investments of $86 million primarily related to completion of the Trentwood expansion and other facility upgrades, including Kalamazoo Working capital consumed $67 million in cash driven by higher inventory levels Returned $45 million to shareholders in dividends and share repurchases Operating Cash and Revolver Funded Inventory, Capital Programs and Repurchases 12 EBITDA = Operating Income (before non run rate items) plus depreciation Beginning Cash EBITDA Revolver Borrowings Working Capital CapEx Dividends & Share Rep Other Uses Ending Cash white 68.9 199.5 168.5 82 37 2.2 blue 68.9 130.3 2 orange 36 red 67 86.2 45.2 34 red 2008 Cash Sources & Uses ($ millions) $1

Cash and Liquidity Management Committed $265 million Revolving Credit Facility provides borrowing capacity to operate through economic cycles Credit market conditions continue to limit access to new capital Provide a prudent liquidity cushion to manage through an economic downturn Solid operating cash flows Manage through economic uncertainty Review and prioritize capital spending projects Right-size working capital to slower business conditions Continue to monitor our accounts receivable and other financial exposure Maintain Balance Sheet and Financial Strength 13

14 Jack Hockema President, CEO and Chairman

15 Market Outlook Automotive Extrusions Aerospace / High Strength General Engineering Cast Billet Custom Other % of sales 6.2 48.2 37 1.1 7.5 General Engineering 37% Aerospace / High Strength 48% Automotive Extrusions 6% Other Custom 8% Cast Billet 1% Aerospace & Defense Expect continuing strong demand Reasonably good visibility General Engineering, Automotive & Industrial Significant softness in end user demand began in 4th quarter and continues Significant destocking throughout the entire supply chain exacerbates impact on mill products demand 2008 Value-Added Revenue by Market

16 Managing through Economic Uncertainty - Positioning Well Positioned With Financial Strength and Solid Market Presence Solid balance sheet, liquidity and financial flexibility Strong market presence Focus on demanding applications where we have competitive strength Differentiated as the supplier of choice Growing position in attractive aerospace and defense market segments supported by multi-year customer contracts Positioning as a low cost producer Heat treat plate Rod & bar (Kalamazoo and Los Angeles) Efficiency upgrades in other facilities

17 Managing through Economic Uncertainty - 2009 Focus 2009 Focus on Efficiency, Liquidity, Customer Satisfaction & Growth Manufacturing efficiency Restore order in manufacturing operations Flex production and resources with demand Liquidity Reduce inventory Allocate capital with priority on efficiency improvement Customer satisfaction Continue to earn supplier of choice status for our products Launch portfolio of Select(r) plate products Strategic growth Expand global marketing for aerospace and defense applications Prepare Kalamazoo for early 2010 launch

18 Summary Strong underlying 2008 results 2nd best Fabricated Products operating income (x-NRR) in history Record Aero/HS shipments Well-positioned to manage through market cycles Strong balance sheet and committed bank financing Strong market position supported by multi-year customer contracts Taking prudent actions to preserve financial strength Prioritizing investments and actions to improve operating efficiency Focus on cost and inventory efficiencies Complete Kalamazoo project for early 2010 launch

19 Q&A

20 Strong underlying 2008 results Long-term fundamentals remain positive Well-positioned to manage through market cycles Closing Comments

21

22 Appendix

23 Leading North American fabricated aluminum products manufacturing company serving global markets Annually produce over 500 million pounds of fabricated products Reputation for Best In Class customer satisfaction Broad product offering of sheet, plate, rod, bar, tube, extrusions and forgings Emphasis on highly engineered specifications for aerospace/high strength, general engineering, and custom automotive and industrial applications Significant organic growth initiatives for aerospace, defense, and general engineering applications Platform for organic and acquisition growth Financial strength and flexibility A Leader in Fabricated Aluminum Products Company Summary

24 Mark-to-Market Derivatives are being marked-to- market with non-cash gains and losses recognized in income (versus deferred and recognized at the same time as when the underlying products are purchased or sold) The impact in Fabricated Products is driven primarily by natural gas positions The impact in Primary Aluminum is driven by metal and currency positions Applies to Hedging-Related Derivatives Metal Profits & LIFO are Closely Related Metal Profits & LIFO The company applies the LIFO inventory valuation method quarterly on a year-to-date basis We define metal profits/losses generally as the impact to FIFO value of metal inventory as a result of changing metal prices The LIFO impact of volatility in metal prices is reflected quarterly and thus metal profits/losses are largely offset in earnings

25 Corporate & Other 1 Primarily reflects amortization of the fair value of equity-based compensation 2 Totals may not sum due to rounding 3 Reflects non-cash net periodic VEBA benefit income (expense) and legacy environmental expenses 4 NRR is an abbreviation for Non-Run-Rate

26 Reported to Adjusted Operating Income Bridge 1 Totals may not sum due to rounding 2 Refer to the most recent 10-K for a detailed breakdown of 'Other Operating Benefits / (Charges)'

Operating Margin Trends - Fabricated Products We manage the business to grow EVA; decisions to optimize EVA may reduce margins When measuring margin, EBITDA per pound is a better metric than margin as % of sales revenue which is impacted by metal price volatility 2008 Impacted by: Favorable value added pricing Unfavorable energy costs Manufacturing inefficiencies EBITDA (before NRR) Margin Notes 1 NRR is an abbreviation for Non Run Rate 2 EBITDA (before NRR) = OI (before NRR items) + Depreciation and Amortization EBITDA (before NRR) Margin ($/lb) 2 2005 2006 2007 2008 0.23 0.27 0.33 0.28 40 46 61

27

28 Sales Analysis By Application (2006 vs. 2007) 1 Includes automotive, custom products and billet 2 Totals may not sum due to rounding 3 Value added Revenue is = Net Sales - Cost of alloyed metal; also known as 'spread revenue'

29 Sales Analysis By Application (2007 vs. 2008) 1 Includes automotive, custom products and billet 2 Totals may not sum due to rounding 3 Value added revenue = Net Sales - Cost of alloyed metal; also known as 'spread revenue'

30 Historical Perspective on Market Cyclicality Long Term Contracts Mitigate Effect of Potential Downturn Served market segments contracted ~30% from peak to trough in the post 9/11 deep and long recession Kaiser's enriched product mix and book of heat treat plate contracts should mitigate the effect of an economic downturn 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008E 2009F 2010F 1.265 1.163 1.27 1.353 1.545 1.673 1.644 1.858 1.904 2.004 2.008 1.516 1.36 1.44 1.769 1.9522 2.037 2.005 2.041 1.103 1.015 1.11 1.18 1.349 1.459 1.434 1.622 1.662 1.749 1.803 1.364 1.341 1.373 1.659 1.779 1.861 1.517 1.275 3.89 3.9 Kaiser 'Non-Core' Served Market Segments Kaiser 'Core' Served Market Segments Source: Aluminum Association, Kaiser estimates 'Core' served market segments account for ~ 85% of Kaiser sales Industry Shipments (billions of pounds)