Alcoa reports Q3 2015 productivity gains in rolled products and end use segments

Lightweight metal major Alcoa Inc reported after-tax operating income (ATOI) decline in third quarter 2015 in its rolled products and end use segments. However, strong productivity gain was reported in both the segments, which has long-term significance, as far as Alcoa's diversified business is concerned.

Following are the financial highlights:

Transportation and Construction Solutions

ATOI in the third quarter was $44 million, down $6 million year-over-year. The decline was driven by cost headwinds and the unfavorable impact from currency, which were offset by strong productivity gains. This segment delivered an adjusted EBITDA margin of 15.2 percent, compared to 15.5 percent for the same quarter last year.

Global Rolled Products

ATOI in the third quarter was $62 million, down $7 million year-over-year. Strong productivity and the benefit of automotive sales growth of 133 percent, were more than offset by cost increases, investments for ramping up growth projects (e.g. Tennessee automotive expansion and Micromill), currency, portfolio actions and unfavorable price/mix. As a result of this segment’s transformation initiatives, including divestitures and upgrading the product mix, adjusted EBITDA per metric ton was $330 in third quarter 2015, up 6 percent, or $18 per metric ton, from $312 in the year-ago quarter.