Global lightweight metal giant Alcoa posted growth in the combined Upstream division, Alcoa Corporation, for the second quarter 2016. The company's Alumina and Primary Metals segments reported revenue of $2.3 billion, ATOI of $150 million and adjusted EBITDA of $358 million.
The total revenue of the Upstream division grew 7 per cent owing to 22 percent higher alumina prices, and 2 percent higher aluminium pricing and organic growth.
These segments generated $199 million in productivity in Q2 ($379 million year-to-date) as part of its business improvement program, and are on track to deliver a combined $550 million in productivity savings for 2016.
Alcoa's Alumina division generated ATOI of $109 million in the second quarter, an increase of $101 million from $8 million in the first quarter of 2016. This improvement was primarily driven by a 22 percent increase in the Alumina Price Index, the benefits of a more competitive portfolio and productivity actions, slightly offset by net unfavourable foreign currency movements due to a stronger Australian dollar and Brazilian real.
Based on the above results and activities carried out by the company during the period under review, Alcoa remains on target to meet or exceed its 2016 goals of moving to the 21st percentile on the global alumina cost curve.
