Alcoa Corporation reports first quarter 2019 results

2019-04-17

Apr. 17, 2019 - Alcoa Corporation (NYSE: AA), a global leader in bauxite, alumina, and aluminum products, today reported first quarter 2019 results.

1. Net loss of $199 million, or $1.07 per share

2. Excluding special items, adjusted net loss of $43 million, or $0.23 per share

3. $467 million of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) excluding special items

4. Revenue of $2.7 billion

5. $168 million cash from operations; $99 million free cash flow

6. $1.0 billion cash balance and $1.8 billion of debt, for net debt of $0.8 billion, as of March 31, 2019

“We improved our operations in the first quarter, even as alumina and aluminum prices weakened,” said President and Chief Executive Officer Roy Harvey. “Our Bauxite and Alumina segments increased their production rates, and we took steps last quarter to restructure our Aluminum portfolio.”

Harvey added: “We will work to realize the benefits of the strategic actions we’ve already taken as we remain focused on safety and operational excellence. We will also continue to review our assets for their ability to compete across all market cycles, all to strengthen the long-term position of the Company.”

In first quarter 2019, Alcoa reported net loss of $199 million, or $1.07 per share, compared to net income of $51 million, or $0.27 per share, in fourth quarter 2018. The 2019 first quarter results include the impact of $156 million for special items, stemming primarily from a collective dismissal process at two smelters in Spain.

Excluding the impact of special items, first quarter 2019 adjusted net loss was $43 million, or $0.23 per share, down from fourth quarter 2018 net income of $133 million, or $0.70 per share.

Alcoa reports adjusted EBITDA excluding special items for the first quarter of 2019 of $467 million, a 39 percent sequential decrease primarily due to lower alumina and aluminum prices.

Alcoa reported first quarter 2019 revenue of $2.7 billion, down 19 percent sequentially, also primarily due to lower alumina and aluminum prices.

Cash from operations in first quarter 2019 was $168 million and free cash flow was $99 million. Cash used for financing activities was $199 million and cash used for investing activities was $59 million.

Alcoa ended first quarter 2019 with cash on hand of $1.0 billion and debt of $1.8 billion, for net debt of $0.8 billion. The Company reported 35 days working capital, a 10-day increase year-over-year, primarily due to lower revenues, timing of trading activities and higher inventory days on hand.