Pittsburgh aluminium pioneer Alcoa Corporation released results for the year’s first quarter last week. The firm turned in the best financial quarter in three years through the first three months.
In the year’s first quarter Alcoa generated a net income of US$175 million, reversing the prior quarter’s net loss of US$49 million. Adjusted net income was three times better in the quarter, coming to US$150 million, excluding a benefit of US$25 million from net special items.
Higher aluminium and alumina prices in the quarter helped to boost the adjusted EBITDA excluding special items by 44 percent to US$521 million. Meanwhile, the share of its value-added products rose by ten percent in the quarter, its shipments of alumina rose by 7 percent, and its sales of primary aluminium jumped by 13 percent.
Alcoa President and CEO Roy Harvey said in a press release that the firm experienced gains across the board in the first quarter.
“We had an excellent first quarter with our best quarterly result since a record-setting year in 2018. We excelled from the top line to the bottom line, controlling production costs and capturing the benefits of improved demand and stronger prices for alumina and aluminum.”
“In addition to exceptional operating performance, we made the Company even stronger this quarter by improving the balance sheet,” Harvey went on. “Using cash on hand and the proceeds from our debt issuance with our lowest-ever coupon rate, we paid off higher-interest rate notes in April and funded more of our pension obligations. This provides even greater flexibility to execute on our long-term strategy in the years ahead.”
Alcoa also noted the sale of the Warrick rolling mill for US$670 million and the signing of a new agreement with the Victoria, Australia government on power for its Portland Aluminium operation as major achievements for the quarter.
“Our teams have demonstrated relentless discipline to ensure we are ready for whatever the markets may bring,” concluded Harvey. “We’ve proven we can operate during uncertain times, and we’re well positioned for the future with excellent environmental, social and governance practices and a low-carbon product portfolio that is the industry’s most comprehensive.”