Alcoa Reports Fourth Quarter and Full Year Financial Results

The world’s eighth largest producer of aluminum, Alcoa, reported fourth quarter and full year results recently.

For the fourth quarter, Alcoa reported net income of $43 million, or $0.23 per share. This is compared to a net loss of $41 million, or $0.22 per share, in the period a year ago. The results included a negative impact of $82 million for special items.

Adjusted net income for the quarter, excluding the impact of special items, was $125 million, or 66 cents a share. This is compared to $119 million, or 63 cents in the year ago period.

Adjusted EBITDA excluding special items dropped 6 percent to $749 million in fourth quarter 2018 from $795 million in third quarter 2018.

Revenue for the quarter was $3.3 billion. This was a drop of 1%.

For the full year, the company reported net income of $227 million, or $1.20 a share. This is compared to $217 million, or $1.16 a share for the full year of 2017. Adjusted net income, minus special items, was $675 million, or $3.58 a share. This is compared to $563 million, or $3.01 a share in 2017.

Revenue for the full year was $13.4 billion, up 15 percent from 2017.

Adjusted EBITDA excluding special items was $3.1 billion, a growth of 27 percent from the $2.4 billion earned in 2017.

“Our 2018 results reflect how we’ve made Alcoa stronger,” stated President and Chief Executive Officer Roy Harvey.

“We’ve built upon the progress we made since our launch, and by executing our strategic priorities to reduce complexity, drive returns, and strengthen the balance sheet, we’re now better positioned to thrive through market cycles”

“Despite sequentially weaker commodity prices, we had a strong fourth quarter with higher profits in our Bauxite and Alumina segments. With the help of higher market prices earlier in the year, we increased annual profits, addressed liabilities, significantly strengthened our balance sheet, and began returning cash to stockholders. With markets likely to remain dynamic in 2019, we will focus on what we can control to continue improving our operations, addressing challenges with agility, and making the most of opportunities in the year ahead,” Harvey also said.

Looking ahead, the company has forecast a global aluminum deficit ranging between 1.7 million and 2.1 million metric tons with global demand growth in a range of 3 to 4 percent.

Alcoa has also projected that total bauxite shipments will range between 47.0 and 48.0 million dry metric tons. Total alumina shipments are expected to be between 13.6 and 13.7 million metric tons with anticipated operational improvements and higher year-on-year production. Aluminum is expected to ship between 2.8 and 2.9 million metric tons.