
Alcoa Corporation has announced its third quarter 2019 results. The company has reported a net loss of $221 million in Q3 2019 compared with a net loss of $402 million in Q2 2019. Excluding the impact of special items, third quarter 2019 adjusted net loss stands at $82 million, from adjusted net loss of $2 million in Q2.
President and Chief Executive Officer Roy Harvey said: “Our third quarter showed continued strong operational performance and stability across our aluminium value chain. Our Bauxite and Alumina segments reached new quarterly production records since our launch in 2016, and our aluminium business continued to rebound. While market and pricing challenges persisted through the quarter, our cash balance remained steady.”
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Adjusted EBITDA excluding special items has dropped $67 million from the prior quarter to $388 million on lower alumina pricing that was partially offset by higher alumina sales volume and lower production costs. Revenue is down 5 per cent to $2.6 billion.
Alcoa has announced a multi-year portfolio review aimed at driving lower costs and sustainable profitability with refined strategic priorities. The company intends to pursue non-core asset sales expected to generate an estimated $500 million to $1 billion in net proceeds over the next 12 to 18 months.
Alcoa plans to realign its operating portfolio, and has placed under review 1.5 million tonnes of smelting capacity and 4 million tonnes of alumina refining capacity over the next five years. The review will consider opportunities for significant improvement, potential curtailments, closures or divestitures.
"After the portfolio transformation, the Company expects to be the lowest emitter of carbon dioxide among all global aluminum companies, per ton of emissions in both smelting and refining, and aims to move its aluminum portfolio to a first quartile cost position," Alcoa said.
The company’s shipment outlook for Bauxite, Alumina and Aluminium in 2019 remains unchanged year-on-year.
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