Alcoa reports net income of $150 million in first quarter of 2018

Alcoa Corporation, the leading global conglomerate in bauxite, alumina and aluminium, reported first quarter 2018 results that show resilient profitability amid lower alumina prices earlier in the year.

The company closed the quarter on March 31, 2018 with $1.2 billion cash, down $162 million sequentially, but up $392 million year-over-year. Alcoa is projecting its full-year 2018 adjusted EBITDA excluding special items to range between $3.5 billion to $3.7 billion due to recent favourable market conditions.

In first quarter 2018, Alcoa reported net income of $150 million and excluding special items, adjusted net income of $145 million.

Alcoa reported $653 million of adjusted EBITDA excluding special items, down 18 percent from $796 million in fourth quarter 2017. “Lower alumina prices were the primary factor driving the sequential change in adjusted EBITDA. Other factors, including seasonal volume declines and higher raw material costs, were offset by improved aluminium prices and lower energy costs.”

Revenue was down 3 percent sequentially to $3.1 billion, largely due to decreased aluminium shipments and a decline in alumina prices, partially offset by both increased shipments and favorable mix in alumina and higher aluminium prices.

Alcoa President and Chief Executive Officer Roy Harvey said, “Our first quarter results point to a good start for the year, enabling us to make further progress against our strategic priorities to reduce complexity, drive returns, and strengthen the balance sheet.”

 “While the markets may continue to change, our portfolio of assets across the aluminium value chain is steadfastly positioned to perform through commodity cycles.”