Alcoa expects lower quarterly results in the Bauxite and Alumina segments in Q3

Alcoa Corporation reported improved productivity in Q2 and continued operational stability during the COVID-19 pandemic. For Q3, the company expects slightly lower quarterly results in the Bauxite segment primarily due to lower volume.

Alcoa expects lower quarterly results in the Alumina segment from higher energy costs in Australia. In the Aluminium segment, the Company expects improved results with lower raw material costs including energy.

For 2020, shipment outlook for Bauxite, Alumina and Aluminium remains unchanged from the prior full-year estimates. Total annual bauxite shipments are expected to range between 48.0 and 49.0 million dry metric tons. Total alumina shipments are projected between 13.6 and 13.7 million metric tons. Aluminium shipments are expected to be between 2.9 and 3.0 million metric tons.

The company lowered its annual outlook for depreciation, depletion and amortization expense to $665 million from $685 million as favourable currency rates resulted in lower expense in the first half of 2020, as well as lower capital spending in the year.

“The COVID-19 pandemic is ongoing, and its magnitude and duration continue to be unknown. The uncertainty around its future impact on the Company’s business, financial condition, operating results, and cash flows could cause actual results to differ from this outlook,” Alcoa said.