Alcoa Reported Robust Results in Q1 2020

SEATTLE (Scrap Monster): Pittsburgh-based Alcoa Corporation reported solid results for Q1 2020.

During the quarter, the company reported net income of $80 million, or $0.43 per share. This compares with net loss of $303 million, or $1.63 per share, in the fourth quarter of 2019. The adjusted EBITDA excluding special items for the first quarter of 2020 was $321 million. The revenues, at $2.4 billion, were down by 2%, mainly due to lower alumina and aluminium prices and lower volume. Alcoa reported cash on hand of $829 million and net debt of $973 million.

ALSO READ:

Alcoa Corporation Rated as the Top Aluminum Industry Performer

Alcoa Corpration Completed Sale of Gum Springs Facility

Commenting on the results, Roy Harvey, President and Chief Executive Officer, Alcoa noted that the company delivered solid first quarter with a strong cash balance. The company is focused on implementing various decisive actions aimed at protecting financial stability, while ensuring safety and protection of its workforce and communities, he added.

The company decided to cut annual overhead expense by $60 million beginning second quarter this year. It will continue to pursue potential sale of non-core assets so as to generate up to $1 billion in cash by early next year. The remaining 230,000 metric tons of uncompetitive smelting capacity at its Intalco smelter in Ferndale, Washington will be curtailed.