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Sep 30, 2021
Alcoa Q3 2021 Earnings Report
Alcoa reported its highest quarterly net income and earnings per share, eclipsing the prior quarter’s record-setting financial performance and continuing to capture benefits from strong aluminum pricing.
Key Takeaways
Alcoa's Q3 2021 results showcased record profitability with a net income of $337 million and EPS of $1.76, driven by strong aluminum and alumina prices. The company grew revenue to $3.1 billion, a 10% sequential increase, and generated $435 million in cash from operations.
Grew revenue to $3.1 billion, a sequential increase of 10 percent
Set a record for quarterly net income of $337 million and earnings per share of $1.76
Realized a 39 percent sequential increase in adjusted net income to $391 million
Generated $435 million in cash from operations; finished the quarter with a cash balance of $1.45 billion
Alcoa
Alcoa
Alcoa Revenue by Segment
Revenue by Segment
Third-party bauxite sales Revenue
CapyFin.comThird-party alumina sales Revenue
CapyFin.comThird-party aluminum sales Revenue
CapyFin.com Forward Guidance
Alcoa anticipates continued positive financial results in the fourth quarter of 2021 and is well positioned to participate in strong market pricing. The resulting fourth quarter impact on net income attributable to Alcoa could approximate $90 million. Additionally, working capital increase in the fourth quarter related to San Ciprián could approximate $120 million.
Positive Outlook
- Alcoa continues to expect a strong 2021 based on the continued economic recovery and increased demand for aluminum in all end markets.
- The Company’s Aluminum segment is forecasting double digit growth on year-over-year shipment volume of value-add products
- Company expects annual global demand for primary aluminum to increase approximately 10 percent relative to 2020 and to surpass the pre-pandemic levels in 2019
- Alcoa anticipates continued positive financial results in the fourth quarter of 2021
- Alcoa is well positioned to participate in strong market pricing.
Challenges Ahead
- The San Ciprián refining and smelting operations are expected to face significantly higher energy and raw materials costs, as well as the loss of value-add premiums while strike conditions persist.
- The resulting fourth quarter impact on net income attributable to Alcoa could approximate $90 million.
- Included in that impact is the reduction of approximately 52,000 metric tons of aluminum shipments.
- Additionally, working capital increase in the fourth quarter related to San Ciprián could approximate $120 million.
- Beyond the San Ciprián impacts, the Company also anticipates continuing inflationary pressure on raw materials and energy.
Revenue & Expenses
Visualization of income flow from segment revenue to net income