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Dec 31, 2020
Alcoa Q4 2020 Earnings Report
Alcoa reported strong operational performance, successful execution of cash actions, and progress on its strategy.
Key Takeaways
Alcoa Corporation reported a net loss of $4 million, or $0.02 per share, in Q4 2020. Adjusted net income was $49 million, or $0.26 per share. Adjusted EBITDA excluding special items was $361 million. The company realized a 15 percent sequential increase in sales revenue of value-add products.
Maintained operations safely during the COVID-19 pandemic.
Realized a 15 percent sequential increase in sales revenue of value-add products due to improving demand in the Aluminum segment
Set quarterly production records in the Bauxite segment and the Western Australian alumina refining portfolio
Generated $38 million in cash from operations after making a $250 million contribution to U.S. pension plans
Revenue by Segment
Forward Guidance
Primary aluminum consumption is expected to increase in both China and ex-China in 2021 with the recovery from the pandemic and the impact of additional stimulus measures.
Positive Outlook
- Total bauxite shipments to range between 49.0 and 50.0 million dry metric tons, an improvement from 2020.
- Total alumina shipments are expected to be between 13.9 and 14.0 million metric tons and stable in comparison to 2020.
- The Aluminum segment is expected to ship between 2.7 and 2.8 million metric tons, a decrease from 2020 related to the changes in the portfolio but well positioned to benefit from the recovery in value-add products.
- Primary aluminum consumption is expected to increase in both China and ex-China in 2021 with the recovery from the pandemic and the impact of additional stimulus measures.
- As supply growth is projected to be lower than demand growth, the global primary aluminum market is anticipated to be closer to balance in 2021.
Challenges Ahead
- Alcoa anticipates lower quarterly performance results in the Bauxite segment due primarily to lower internal bauxite pricing and lower earnings from minority owned mines.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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