Welcome to Refwin.com, Join Free  |  Sign In Home  Inquiry   Contact   Mobile   Free E-Weekly News   中文站
Directory Price Market Buy News Conference Dictionary
I want to search:          
Home >>News 
Alcoa under the scanner – surviving in poor market conditions
2019-08-21

Aug. 21, 2019 - Since Alcoa launched as an independent company – (after spinning off its downstream segment in November 2016, now rebranded as Arconic, the company has continued to fight tough market conditions to secure growth. The split was not a surprise to market watchers, as it came after the average LME cash price for 2016 hit the lowest level since 2003 (US$ 1605/tonne). But 2019 has registered some success for Alcoa, in the way the company has rationalised and increased production, while further lowering costs.



Alcoa posted a net loss of $402 million (US$ 2.17/share), which includes a $319 million one-off cost to divest from its 25.1% minority interest in the Ma’aden Rolling Company (MRC) in Saudi Arabia. The remaining US$ 81 million were earmarked for other special items (including a tax provision of US$ 22 million, US$ 8 million for the USW master agreement negotiation and other Becancour lockout related costs). With these move, Alcoa has been released from all future MRC obligations, including Alcoa’s support for MRC debt, and its share in any future MRC cash contributions. Excluding the impact and costs of special items, Q2 2019 adjusted net loss amounts to US$ 2 million, or $0.01 per share.


Alcoa continues to hold a a 25.1% stake in the joint ventures with Ma’aden on bauxite mining, alumina refining and aluminum smelting. Alcoa reached two new competitive labour agreements at smelters in Québec, where it agreed to six-year contracts at the Baie Comeau (May 31) and Bécancour (July 2) smelters in Canada. Ending an 18-month labour dispute, the Bécancour restart began on July 26. The full restart will be completed in the second quarter of 2020.

Related Reading
Alcoa's bauxite, alumina operations in WA receive ASI certification   2020-02-01
Alcoa reported net loss in 2019   2020-01-16
Alcoa announces agreement to sell Gum Springs Facility in $250 million transaction   2020-01-02
Lindian to drill test bauxite play in Guinea   2019-12-19
Alcoa to close Point Comfort Texas refinery   2019-12-16
Alcoa joins International Council on Mining and Metals   2019-11-21

X
Online Service