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Dec 31, 2021
Alcoa Q4 2021 Earnings Report
Alcoa Corporation reported fourth quarter and full year 2021 results, including the Company’s highest annual net income and earnings per share.
Key Takeaways
Alcoa Corporation's fourth quarter results were driven by higher alumina and aluminum prices, leading to a 7% sequential increase in revenue to $3.3 billion. The company faced a net loss of $392 million, or $(2.11) per share, due to restructuring charges, but adjusted net income increased to $475 million, or $2.50 per share.
Increased revenue to $3.3 billion, a 7 percent sequential increase and highest quarterly result since 4Q18
Generated $565 million in cash from operations; finished the quarter with a cash balance of $1.9 billion, including restricted cash of $110 million
Recorded quarterly net loss of $392 million and loss per share of $2.11, which includes $1.1 billion of restructuring charges, primarily related to pension actions
Realized quarterly records for adjusted net income and Adjusted EBITDA excluding special items of $475 million and $896 million, respectively
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 Adjusted EBITDA and Adjusted net income levels for the first quarter of 2022 to be similar to the fourth quarter of 2021 based on current pricing.
Positive Outlook
- Current metal index price benefits will roughly offset the raw materials and energy challenges.
- Improvements from portfolio actions and sales contract pricing will mitigate other seasonal changes and headwinds.
- Improvements related to the San Ciprián strike resolution and smelter curtailment are expected in the Alumina and Aluminum segments.
- Company expects improvements related to the San Ciprián strike resolution
- Company expects improvements related to smelter curtailment
Challenges Ahead
- Lower quarterly performance results in the Bauxite segment due primarily to seasonally lower volumes and higher maintenance.
- Favorable annual true ups that do not recur in the first quarter.
- Higher raw materials and energy costs are expected in the Alumina and Aluminum segments.
- The non-recurrence of value added tax credits (Brazil) is expected in the Alumina and Aluminum segments.
- First quarter tax expense to approximate $165 million to $170 million, which may vary with market conditions and jurisdictional profitability.
Revenue & Expenses
Visualization of income flow from segment revenue to net income