Century Aluminum has no immediate plans to restart its smelter in Jackson County, but some preliminary indications suggest that possibility exists.

Century ended three quarters of losses with net income of more than $40 million during the 2009 third quarter.

Aluminum pricing is making somewhat of a rebound, showing a 20 percent increase on the London Metal Exchange since the first quarter of 2009, when the four-potline operation near Ravenswood was shuttered. Century has extended its contract with United Steelworkers of America Local 5668 and received a temporary extension of its power contract through the West Virginia Public Service Commission.

More recently, Century informed its more elderly Ravenswood retirees they would not be covered by the company's insurance plan beyond Dec. 31, 2009. Officials said the cutback was necessary to keep the option open for any possibility of resuming production at the plant.

The company released its third-quarter financial report on Oct. 27, reporting an income of more than $40.1 million ($0.45 per common share). Third-quarter figures were impacted, though, by an after-tax benefit of $55.6 million connected to a new electrical contract at its Hawesville, Ky., operation, according to a company earnings statement.

Sales fell to $228.7 million during the third quarter, from $552.2 million a year earlier. Shipments of primary aluminum declined from 203,618 tons last year to 146,245 tons during the most recently completed quarter. For the first nine months of the year, sales were $642.4 million compared to $1.5 billion for the same time frame of 2008, according to a news release from the company.

President and Chief Executive Officer Logan W. Kruger said cost-reduction efforts have "yielded tangible results."

"Since the onset of the financial crisis, we have focused on the critical goals of risk reduction and liquidity enhancement," he said.

Kruger also made reference to the Jackson County smelter that has been shuttered since February, idling 650 employees.

"The Public Service Commission in West Virginia also approved a one-year extension to our special power rate contract at Ravenswood, preserving our options at that smelter while we work through improving its cost structure," he said.

Century officials announced this week they are cutting insurance benefits of plant retirees who are 65 and older, noting the action was necessary to keep options open for someday reopening the facility. Those retirees are being referred to Medicare for coverage although their pre-65 dependents will continue to be covered.

Spokesman Mike Dildine said Century must meet the challenge of reducing the ongoing curtailment costs of the Jackson County facility.

"In order for Century of West Virginia to preserve the option of restarting the Ravenswood smelter if conditions allow, the company is pursuing all opportunities to reduce ongoing curtailment costs," Dildine said. "Part of this effort involves bringing medical benefits more in line with U.S. manufacturing trends."

Dildine noted that aluminum prices have improved but not to the level at which the Ravenswood plant could operate at a profit.

"Prices have recovered somewhat," he noted of the recent trend. "Prices have gone from $1,900 per metric ton to $2,900 per metric ton, but that is still below operating costs."

That compares to $1,300 per metric ton when the plant closed last winter, according to Dildine.