Alcoa Weathers COVID-19 Storm In Second Quarter

Alcoa Weathers COVID-19 Storm In Second Quarter

Aluminium pioneer Alcoa Corporation released results for the second quarter on Wednesday, boasting both a better balance sheet and improved productivity despite the ongoing coronavirus pandemic.

In the just-ended quarter the firm posted a total revenue of US$2,148 million, besting the prior quarter’s total of US$2,381 million but down on the year from last year’s total of US$2,711 million. Net loss attributable to Alcoa Corp came to US$197 million, reversing last quarter’s gain of US$80 million but almost half of last year’s second-quarter loss of US$402 million. The firm said revenue was down in the quarter thanks to lower global prices for alumina and aluminium.

Adjusted net loss in the quarter figured at US$4 million, a marked improvement over last quarter’s US$42-million loss but only half as good as last year’s second-quarter loss of US$2 million. Adjusted EBITDA less special items totaled US$185 million, down on the quarter from US$321 million and below last year’s quarterly total of US$455 million. In the quarter the firm absorbed the impact of US$193 million in special items, including taxes, the curtailment of the Intalco smelter and the restart at Aluminerie de Bécancour Inc., which Alcoa says is likely to be concluded in the fall this year.

Alcoa’s President and Chief Executive Officer Roy Harvey fleshed out the quarter’s numbers in comments earlier this week.

“I am proud of our global team’s resolve in facing challenges created by the pandemic, focusing first on protecting people,” he commented. “We acted early to implement comprehensive measures to mitigate health risks, and we continue to exercise all precautionary measures to keep people safe and our locations fully operational.”

“Despite challenging market conditions, our team has lowered production costs, increased output, maintained stable shipments, and improved our balance sheet. We continued to make progress in executing our strategic actions and 2020 programs, and we finished the quarter with a cash balance of nearly one billion dollars.”

“Earlier this month, we issued corporate bonds at a favorable rate which provides us with improved flexibility as we continue to navigate through the current economic uncertainties,” concluded Harvey. “As we move forward and the economy recovers, we will also be well positioned to complete objectives within our capital allocation framework.”