Alumina faces loss from its partner Alcoa

Alumina received no dividends from its joint venture partner Alcoa in the three months to September after the US company posted a third quarter loss of $US143 million ($A140.96 million).

Melbourne-based Alumina's only earning asset is its 40 per cent stake in Alcoa World Alumina and Chemicals (AWAC), which it co-owns with Alcoa.

Alcoa's loss in the third quarter of calendar 2012 was caused by one-off charges relating to legal action and environmental issues.

Its underlying earnings of $US32 million ($A31.54 million) were higher than analyst expectations.

Alumina chief executive John Bevan said AWAC's third quarter financial performance reflected lower alumina prices and the Australian dollar's continued strength.

But, he said, there were signs of better conditions.

"There have been early signs of improvement in market conditions in the fourth quarter, although the outlook for pricing remains uncertain," Mr Bevan said in a statement on Wednesday.

"Operationally, productivity improvements continued, coupled with improved working capital management and relatively flat input costs."

Alumina did not receive any dividends from AWAC for the three months to September, but Alcoa and Alumina have agreed it will receive dividends from AWAC of $US20 million in the fourth quarter.

Alumina would also receive dividends of no less than $US100 million during 2013, Mr Bevan said.

Alcoa has been challenged by the global manufacturing slowdown that cut into demand from many of its customers.

It lowered its 2012 global aluminum demand growth forecast to six per cent, from seven per cent, citing the economic slowdown in China.

It said it is anticipating a slowdown across all major regions of the world for the rest of the year.