Alcoa announces its first quarter results for 2015

Lightweight metals leader Alcoa today reported strong first quarter 2015 profits. The Company’s strategy of building its value-add portfolio and creating a globally competitive commodity business is delivering results.

Alcoa reported first quarter 2015 net income of $195 million, or $0.14 per share, including $158 million in restructuring-related charges (approximately 90 percent non-cash), mostly to optimize the Company’s portfolio. Year-over-year, first quarter 2015 results compare to a net loss of $178 million, or $0.16 per share.

Excluding the impact of all special items, first quarter 2015 net income jumped to $363 million, or $0.28 per share, from $98 million, or $0.09 per share, in the year-ago period.

First quarter 2015 revenues rose 7 percent to $5.8 billion, from $5.5 billion in first quarter 2014. The revenue increase resulted principally from organic growth, driven by strong automotive and aerospace volume. Positive market effects in the quarter were offset by capacity reductions and portfolio changes.

“First quarter results show our transformation is moving at ongoing high speed and is fully on course,” said Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer. “We are organically and inorganically broadening our innovative, multi-material value-add businesses, bringing new capabilities and materials to our aerospace and automotive offerings, and taking swift action in the upstream, making it more competitive. We are pulling on all levers to create sustainable shareholder value.”

Alcoa’s portfolio transformation is currently on course.

1Q 2015 Financial Highlights
• Net income of $195 million, or $0.14 per share; excluding special items, net income of $363 million, or $0.28 per share
• Revenue of $5.8 billion, up 7 percent year-over-year driven principally by organic growth in automotive and aerospace
• Record Engineered Products and Solutions first quarter after-tax operating income of $191 million
• Global Rolled Products shipped record amount of automotive sheet to meet growing demand
• Alumina after-tax operating income more than doubled year-over-year
• Primary Metals after-tax operating income up $202 million year-over-year
• Upwardly revised final 2014 global aluminum demand growth from 7 percent to 9 percent, to 54 million metric tons; Continue to project approximately 3.5 million metric tons of new demand growth in 2015, or 6.5 percent, for a record 57.5 million metric tons

1Q 2015 Portfolio Transformation Highlights
• Firth Rixson integration on track, enhancing leadership in jet engine components
• TITAL acquisition completed ($204 million), expanding titanium and aluminum structural castings for aerospace in Europe
• Announced plans to acquire RTI International Metals to further grow titanium offerings, complementing mid and downstream value chain
• Opened expanded wheels manufacturing plant in Hungary to capture growing demand for Alcoa’s proprietary lightweight wheels in Europe
• Sold Belaya Kalitva, Russia facility to optimize rolling mill portfolio
• Announced a strategic review of 500,000 metric tons of smelting capacity and 2.8 million metric tons of refining capacity
• Curtailing 74,000 metric tons of smelting capacity in Brazil by April 15 and 443,000 metric tons of refining capacity in Suriname by April 30
• Converted San Ciprian alumina refinery in Spain to natural gas