Alcoa Corporation Announces Results for Third Quarter 2019

SEATTLE (Scrap Monster): Alcoa Corporation announced results for third quarter 2019. The revenues recorded decline by 5% over the sequential quarter, mainly on account of lower alumina prices. In addition to quarterly results, the company also announce review of its smelting and refining capacities. Also, it declared sale of non-core assets, as part of its ongoing strategic restructuring of its operations.

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Alcoa reported net loss of $221 million or $1.19 per share in Q3 ’19. This compares with the net loss of $402 million or $2.17 per share reported during the quarter before that. The adjusted EBITDA excluding special items totalled $388 million during the quarter, which is down by $67 million from the prior quarter. The revenue of $6.2 billion was down by 5% from Q2 2019, mainly due to lower alumina prices.

The company announced major restructuring plans of its operating portfolio over the next five years. This will place 1.5 million metric tons of smelting capacity and 4 million metric tons of alumina refining capacity under review. Also, it anticipated net proceeds between $500 million and $1 billion from sale of non-core assets.

Alcoa expects improvements in its aluminium segment in Q4 ’19, aided by lower alumina costs. The aluminium shipments for the full year 2019 are expected to range between 2.8 and 2.9 million metric tons. The company projected global aluminium market deficit of anywhere between 800,000 metric tons and 1.2 billion metric tons, for full-year 2019. Meantime, global alumina market is likely to end in surplus, ranging between 1 million and 1.8 million metric tons.