Alcoa Corporation Releases Preliminary Second Quarter 2024 Results
Financial Results and Highlights
M, except per share amounts |
2Q24
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1Q24 |
2Q23 |
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Revenue |
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Net income (loss) attributable to |
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$(252 |
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$(102 |
) |
Income (loss) per share attributable to |
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$(1.41 |
) |
$(0.57 |
) |
Adjusted net income (loss) |
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$(145 |
) |
$(62 |
) |
Adjusted income (loss) per share |
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$(0.81 |
) |
$(0.35 |
) |
Adjusted EBITDA excluding special items |
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The information regarding second quarter 2024 results is preliminary, based upon information available as of today and is subject to change and finalization based on completion of all quarter end close processes.
“We had strong preliminary results for the second quarter of 2024 which reflect market improvements,” said
Preliminary Second Quarter 2024 Results
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Production: Alumina production is expected to decrease approximately 5 percent sequentially primarily due to the full curtailment of the
Kwinana refinery completed inJune 2024 . Aluminum production in the second quarter 2024 is expected to be consistent with the first quarter's strong output.
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Shipments: In the Alumina segment, third-party shipments of alumina are expected to decrease approximately 5 percent sequentially primarily due to the full curtailment of the
Kwinana refinery . In Aluminum, total shipments are expected to increase approximately 7 percent sequentially primarily due to the timing of shipments and the restart of one potline at Warrick Operations in the first quarter 2024.
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Revenue: For the second quarter 2024, revenue is expected to range between
$2,850 million and$2,925 million , a sequential increase due to higher average realized third-party prices for alumina and aluminum, partially offset by lower alumina shipments.
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Net income attributable to
Alcoa Corporation : The Company is expecting Net income attributable toAlcoa Corporation between$5 million and$25 million in the second quarter 2024, as compared to Net loss attributable toAlcoa Corporation of$(252) million in the first quarter 2024. The expected sequential increase was driven primarily by the non-recurrence of a charge of$197 million recorded in the first quarter 2024 related to the curtailment of theKwinana refinery , in addition to the previously mentioned higher alumina and aluminum prices.
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Adjusted EBITDA excluding special items: For the second quarter 2024, Adjusted EBITDA excluding special items is expected to be between
$310 million and$330 million , a sequential increase driven by higher alumina and aluminum prices and lower production costs.
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Segment Adjusted EBITDA: Alumina Segment Adjusted EBITDA is expected to be between
$180 million and$190 million for the second quarter 2024, a sequential increase driven by the higher average third-party price for alumina, partially offset by higher seasonal maintenance and costs associated with the Kwinana curtailment. For the second quarter 2024, Aluminum Segment Adjusted EBITDA is expected to be between$230 million and$240 million , a substantial sequential increase driven by the higher average third-party price for aluminum and lower production costs, partially offset by higher alumina input costs.
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Cash: Alcoa’s cash balance is expected to approximate
$1.4 billion atJune 30, 2024 , consistent with the prior quarter, as increased Cash provided from operations was partially offset by increased capital expenditures.
Key Actions
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Acquisition of Alumina Limited: On
June 11, 2024 ,Alcoa announced it had reached several key milestones in its acquisition of Alumina Limited. Additionally, onJune 13, 2024 , theAustralian Foreign Investment Review Board approved the transaction, and therefore all required regulatory approvals for the transaction have been received.Alcoa expects the transaction to be completed on or aboutAugust 1, 2024 , subject to approval by the shareholders ofAlcoa and Alumina Limited.
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ELYSISTM: On
June 28, 2024 , the Companyannounced further progress on ELYSIS technology with Rio Tinto’s plans to launch the first industrial-scale demonstration of the breakthrough technology.
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San Ciprián complex: During the second quarter 2024,
Alcoa continued to work to find viable energy solutions for both the San Ciprián refinery and smelter, while progressing the process for the potential sale of the complex. Both alumina and aluminum prices improved during the second quarter, and based on current economic conditions,Alcoa anticipates that available funding will be exhausted by the end of 2024.
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Kwinana refinery: The Company completed the full curtailment of the
Kwinana refinery inAustralia inJune 2024 , as planned.
Preliminary Unaudited Financial Information for 2Q24
Interim consolidated financial statements as of, and for the quarter ended
Conference Call
The call will be webcast via the Company’s homepage on www.alcoa.com. Presentation materials for the call will be available for viewing on the same website at approximately
Dissemination of Company Information
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Forward-Looking Statements
This news release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as "aims," "ambition," "anticipates," "believes," "could," "develop," "endeavors," "estimates," "expects," "forecasts," "goal," "intends," "may," "outlook," "potential," "plans," "projects," "reach," "seeks," "sees," "should," "strive," "targets," "will," "working," "would," or other words of similar meaning. All statements by
Additional Information and Where to Find It
This news release does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities. This communication relates to the proposed transaction. On
Participants in the Solicitation
Non-GAAP Financial Measures
This release contains reference to certain financial measures that are not calculated and presented in accordance with generally accepted accounting principles in
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Calculation of Financial Measures (unaudited) |
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(in millions, except per-share amounts) |
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Adjusted Income |
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Income (Loss) |
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Diluted EPS(4) |
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Quarter ended |
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Quarter ended |
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Estimated
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Estimated
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Net income (loss) attributable to |
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$ |
5 - 25 |
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$ |
(252 |
) |
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$ |
(102 |
) |
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$ |
0.03 - 0.14 |
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$ |
(1.41 |
) |
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$ |
(0.57 |
) |
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Special items: |
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Restructuring and other charges, net |
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~20 |
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202 |
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24 |
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Other special items(1) |
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~(20) |
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22 |
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35 |
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Discrete and other tax items impacts(2) |
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~0 |
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— |
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1 |
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Tax impact on special items(3) |
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~5 |
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(60 |
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(13 |
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Noncontrolling interest impact(3) |
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~5 |
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(57 |
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(7 |
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Subtotal |
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~10 |
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107 |
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40 |
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Net income (loss) attributable to |
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$ |
15 - 35 |
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$ |
(145 |
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$ |
(62 |
) |
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$ |
0.08 - 0.19 |
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$ |
(0.81 |
) |
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$ |
(0.35 |
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Net income (loss) attributable to |
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(1) |
Other special items include the following: |
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(2) |
Discrete and other tax items are generally unusual or infrequently occurring items, changes in law, items associated with uncertain tax positions, or the effect of measurement-period adjustments and include the following: |
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(3) |
The tax impact on special items is based on the applicable statutory rates in the jurisdictions where the special items occurred. The noncontrolling interest impact on special items represents Alcoa’s partner’s share of certain special items. |
(4) |
In any period with a Net loss attributable to |
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Calculation of Financial Measures (unaudited), continued |
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(in millions) |
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Adjusted EBITDA |
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Quarter ended |
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Estimated
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Net income (loss) attributable to |
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$ |
5 - 25 |
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$ |
(252 |
) |
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$ |
(102 |
) |
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Add: |
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Net income (loss) attributable to noncontrolling interest |
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~10 |
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(55 |
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(19 |
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Provision for (benefit from) income taxes |
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~60 |
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(18 |
) |
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22 |
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Other (income) expenses, net |
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~(20) |
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59 |
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6 |
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Interest expense |
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~40 |
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27 |
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27 |
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Restructuring and other charges, net |
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~20 |
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202 |
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24 |
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Provision for depreciation, depletion, and amortization |
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~160 |
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161 |
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153 |
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Adjusted EBITDA |
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275 - 295 |
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124 |
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111 |
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Special items(1) |
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~35 |
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8 |
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26 |
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Adjusted EBITDA, excluding special items |
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$ |
310 - 330 |
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$ |
132 |
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$ |
137 |
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Alcoa Corporation’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. Adjusted EBITDA is a non-GAAP financial measure. Management believes this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa Corporation’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. |
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(1) |
Special items include the following (see reconciliation of Adjusted Income above for additional information): |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20240708019679/en/
Investor Contact:
+1 412 992 5450
James.Dwyer@alcoa.com
Media Contact:
+1 412 527 9792
Courtney.Boone@alcoa.com
Source: