Pittsburgh aluminium pioneer Alcoa Corporation released preliminary results for the year’s second quarter on Wednesday, showing stability and productivity despite challenges presented by the ongoing global pandemic.
Alcoa’s preliminary revenue for the second quarter totaled between US$2,100 million and US$2,175 million, down from the prior quarter’s total of US$2,381 million and off on the year from last year’s second-quarter total of US$2,711 million. The firm notes a drop in demand for value-added products, which shifted sales to commodity-grade ingot, which typically fetches a lower price.
Net loss in the quarter is estimated at between US$205 million and US$190 million, reversing the first quarter’s net gain of US$80 million but besting last year’s second-quarter net loss of US$402 million. In addition to lower aluminium and alumina prices, Alcoa says the second quarter was affected by the non-recurrence of a first-quarter bump from the sale of the Gum Springs waste processing facility.
Adjusted net loss in the second quarter is estimated at between US$15 million and zero, surpassing the first quarter’s adjusted net loss of US$42 million and in range of last year’s second-quarter adjusted net loss of US$2 million. Adjusted EBITDA less special items is expected to fall in a range between US$175 million and US$190 million, down from the prior quarter’s total of US$321 million and last year’s second quarter total of US$455 million.
Alcoa’s President and Chief Executive Officer Roy Harvey noted the challenges that faced the firm in the second quarter.
“At Alcoa, we focus first on the safety and health of our employees, and that commitment has become even more apparent throughout this pandemic. We’ve not only managed to sustain our operations during these challenging times, but we’ve also continued to drive for sustainable improvements.”
“In the second quarter, we realized gains in productivity, cost savings and also increased our cash balance,” he concluded. “Now, we’re working to increase overall liquidity and gain even greater flexibility as we execute on our strategy, including the ongoing portfolio review and the sale of non-core assets.”