Alcoa reports sequential growth in profits in Q12017 on stronger alumina & aluminium prices

Alcoa Corporation has reported first quarter 2017 results and the company reports sequential growth in profits on stronger alumina and aluminium pricing and a solid cash position.

Alcoa reports a net income of $225 million and an adjusted net income of $117 million. Adjusted EBITDA of $533 million was up 59% sequentially driven by higher alumina and aluminium pricing.  Revenue of $2.7 billion, up 5% sequentially, reflecting increased alumina and aluminum pricing

Company continues to expect full-year 2017 adjusted EBITDA, excluding special items, between $2.1 billion and $2.3 billion.  The Company expects full-year 2017 adjusted EBITDA, excluding special items, between $2.1 billion and $2.3 billion.

Commenting on the results, Roy Harvey, Chief Executive Officer of Alcoa said, “Alcoa is off to a strong start with our first full quarter as an independent company…In our Bauxite segment, our third-party business remained strong and we continued to grow profits, while our Alumina and Aluminum segments captured the benefits of improved market pricing to increase earnings substantially.”

{googleAdsense}

Harvey said that the company remained focused on strategic priorities in the first months like consolidating business units and administrative locations, driving returns of capitals and strengthening the balance sheet by maintaining a healthy level of cash on hand. Alcoa streamlined its business segments into three, focusing on bauxite, alumina and aluminium in the first quarter simplifying its businesses.

Alcoa has projected global aluminium demand growth of 4.5 to 5% in 2017 over 2016 and aluminium surplus of 300 thousand to 700 thousand metric tons. The Company has also projected relatively balanced global bauxite and alumina markets.