Alcoa’s Q4 revenue drops 5% QoQ on lower alumina and aluminium prices

Alcoa Corporation announced fourth quarter and full-year 2019 results. The company reported a net loss of $303 million in Q4 2019 compared with a net loss of $221 million in Q3 2019. Excluding the impact of special items, adjusted net loss stood at $57 million, from adjusted net loss of $82 million.

Alcoa President and Chief Executive Officer Roy Harvey said: “In 2019, we acted to further strengthen Alcoa, completing the divestiture of uncompetitive assets, modernizing labor agreements in three countries, implementing a new operating model, and making quick progress on the asset review process we announced last quarter.”

“While the market in alumina and aluminium challenged us, we maintained a strong cash balance of nearly $900 million and drove operational stability. Also, our low-cost, top-tier bauxite and alumina segments both set new annual production records based on our current portfolio.”

Adjusted EBITDA excluding special items fell 11 percent quarter-on-quarter to $346 million in Q4, due to lower alumina and aluminium prices, partially offset by lower raw material prices. Revenue dropped 5 percent to $2.4 billion on lower alumina and aluminium prices.

For full-year 2019, net loss was $1,125 million, compared with net income of $250 million for full-year 2018. Excluding special items, the Company reported adjusted net loss of $184 million.

Adjusted EBITDA excluding special items was $1.66 billion, down 47 percent YoY. Revenue in 2019 was $10.4 billion, down 22 percent from 2018. Cash from operations was $686 million.