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Aluminum April 19, 2018 12:30:53 PM

Alcoa's Q1 Income Surged to $150 Million;Predicts Robust Growth to Aluminum Demand

Paul Ploumis
ScrapMonster Author
The revenues during Q1 2018 recorded 3% sequential decline to total $3.1 billion. The drop in revenue was mainly on account of the decline in aluminum shipment volumes and drop in alumina prices.

Alcoa's Q1 Income Surged to $150 Million;Predicts Robust Growth to Aluminum Demand

SEATTLE (Scrap Monster): Alcoa Corporation, a global leader in bauxite, alumina and aluminum products has announced results of first quarter of the current year. The company’s profits remained resilient during the quarter, despite drop in alumina prices during the beginning of the year.

The company reported net income of $150 million during Q1 2018. It must be noted that Alcoa Inc. had reported net loss of $196 million during the prior quarter. After excluding the impact of special items, the Q1 2018 adjusted income was $145 million. The company reported $653 million of adjusted EBITDA excluding special items, significantly lower by 18% when matched with $796 million during fourth quarter of 2017. The adjusted EBITDA was badly impacted by lower alumina prices, the company noted.

ALSO READ: Global Aluminum Metals Market to Report 5.9% CAGR Growth, Says Report

The revenues during Q1 2018 recorded 3% sequential decline to total $3.1 billion. The drop in revenue was mainly on account of the decline in aluminum shipment volumes and drop in alumina prices. The cash from operations totaled $55 million. Seasonal jump in working capital resulted in negative cash flow of $19 million. Alcoa utilized $74 million for investing activities and another $147 million for financing activities during Q1 this year. The company also reported $1.2 billion cash-on-hand and net debt of $0.3 billion.

The company predicts global deficit for both aluminum and alumina during the current year. The estimate of aluminum deficit has been raised from 300,000-700,000 metric tons provide during the previous quarter to as high as 600,000- 1 million metric tons, mainly on the back of delays in Chinese smelter expansion projects. Meantime, global aluminum demand may witness growth between 4.25% and 5.25%.

The global deficit for alumina is likely to range from 300,000-1 million metric tons, due to supply disruptions in the Atlantic region. The company had forecast balanced alumina market during the prior quarter.

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