Century Aluminum shares drop after 1Q report

Shares of Century Aluminum Co. fell sharply on Wednesday after its quarterly profit disappointed investors.

THE SPARK: The aluminum producer said late Tuesday that it earned $25 million, or 25 cents per share, for the first quarter. That was up from $6.3 million, or 6 cents per share, a year earlier but less than the 27 cents per share that analysts expected.

It said its results were hurt by $4.8 million in hedging bets that fell in value.

THE BIG PICTURE: Century also said it is watching to see whether China limits new growth of aluminum capacity. Such limits would benefit Century by holding back new competition for its aluminum. It is also running into hiccups — and expenses — in restarting a portion of its smelter operation in Hawesville, Ky.

SHARE ACTION: Down $3.22, or 16.3 percent, to close at $16.52. The stock is still well above its 52-week low of $8.25.