SEATTLE (Scrap Monster): Alcoa on Wednesday swung to a loss in the second quarter, as lower aluminum prices offset higher shipments of alumina and aluminum. Here's what we watched:
TOTAL REVENUE: Alcoa posted total revenue of $2.68 billion, down from $3.64 billion for the same period a year earlier. Analysts polled by FactSet had forecast revenue of $2.68 billion.
ADJUSTED LOSS: Stripping out one-time items, the Pittsburgh-based aluminum had an adjusted loss per share of 35 cents. Analysts surveyed by FactSet had forecast an adjusted loss of 49 cents a share.
WHAT WE WATCHED:
--PRICES: Alcoa saw lower aluminum prices in the second quarter which, coupled with higher production costs for alumina drove the company's reported loss. "We expect to see financial improvement in the third quarter of 2023 as the Alumina and Aluminum segments are both forecast to have reduced costs for raw materials and production," said Chief Executive Roy Harvey.
--SHIPMENTS: Alcoa's alumina shipments rose 11% sequentially, with aluminum shipments increasing 4% sequentially amid higher volumes from European smelters.
--OUTLOOK: The company expects full-year total alumina and aluminum shipments to remain unchanged between 12.7 and 12.9 million metric tons, and between 2.5 and 2.6 million metric tons, respectively.
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