PITTSBURGH--(BUSINESS WIRE)--Alcoa Corporation (NYSE: AA) today released preliminary second quarter 2024 results ahead of its Special Meeting of Stockholders to be held on July 16, 2024 in connection with its announced acquisition of Alumina Limited. The preliminary results include sequential increases in revenue, net income, adjusted net income and Adjusted EBITDA excluding special items on higher alumina and aluminum prices.
Financial Results and Highlights
M, except per share amounts | 2Q24 | 1Q24 | 2Q23 | |||
Revenue | $2,850 - $2,925 | $2,599 | $2,684 | |||
Net income (loss) attributable to Alcoa Corporation | $5 - $25 | $(252) | $(102) | |||
Income (loss) per share attributable to Alcoa Corporation | $0.03 - $0.14 | $(1.41) | $(0.57) | |||
Adjusted net income (loss) | $15 - $35 | $(145) | $(62) | |||
Adjusted income (loss) per share | $0.08 - $0.19 | $(0.81) | $(0.35) | |||
Adjusted EBITDA excluding special items | $310 - $330 | $132 | $137 | |||
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. Alcoa will announce its second quarter 2024 results on Wednesday, July 17, 2024.
"We had strong preliminary results for the second quarter of 2024 which reflect market improvements," said Alcoa President and CEO William F. Oplinger. "We are looking forward to closing the acquisition of Alumina Limited on or about August 1, 2024."
Preliminary Second Quarter 2024 Results
Production: Alumina production is expected to decrease approximately 5 percent sequentially primarily due to the full curtailment of the Kwinana refinery completed in June 2024. Aluminum production in the second quarter 2024 is expected to be consistent with the first quarter's strong output.
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.
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.
Net income attributable to Alcoa Corporation: The Company is expecting Net income attributable to Alcoa Corporation between $5 million and $25 million in the second quarter 2024, as compared to Net loss attributable to Alcoa 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 the Kwinana refinery, in addition to the previously mentioned higher alumina and aluminum prices.
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.
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.
Cash: Alcoa's cash balance is expected to approximate $1.4 billion at June 30, 2024, consistent with the prior quarter, as increased Cash provided from operations was partially offset by increased capital expenditures.
Key Actions
Acquisition of Alumina Limited: On June 11, 2024, Alcoa announced it had reached several key milestones in its acquisition of Alumina Limited. Additionally, on June 13, 2024, the Australian 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 about August 1, 2024, subject to approval by the shareholders of Alcoa and Alumina Limited.
ELYSISTM: On June 28, 2024, the Company announced further progress on ELYSIS technology with Rio Tinto's plans to launch the first industrial-scale demonstration of the breakthrough technology.
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.
Kwinana refinery: The Company completed the full curtailment of the Kwinana refinery in Australia in June 2024, as planned.
Preliminary Unaudited Financial Information for 2Q24
Interim consolidated financial statements as of, and for the quarter ended June 30, 2024, are not yet complete and are not available as of the date of this press release. The preliminary financial information, production information and shipment information presented above for the quarter ended June 30, 2024, remain preliminary, based upon information available as of the date of this press release and are subject to change and finalization based on completion of all quarter end close processes. Accordingly, undue reliance should not be placed on this unaudited preliminary financial information. Please also refer to "Forward-Looking Statements."
Conference Call
Alcoa will hold its quarterly conference call at 5:00 p.m. Eastern Daylight Time (EDT) / 7:00 a.m. Australian Eastern Standard Time (AEST) on Wednesday, July 17, 2024 / Thursday, July 18, 2024, to present second quarter 2024 financial results and discuss the business, developments and market conditions.
The call will be webcast via the Company's homepage on . Presentation materials for the call will be available for viewing on the same website at approximately 4:15 p.m. EDT on July 17, 2024 / 6:15 a.m. AEST on July 18, 2024. Call information and related details are available under the "Investors" section of .
Dissemination of Company Information
Alcoa intends to make future announcements regarding company developments and financial performance through its website, , as well as through press releases, filings with the Securities and Exchange Commission, conference calls and webcasts. The Company does not incorporate the information contained on, or accessible through, its corporate website or such other websites or platforms referenced herein into this press release.
Alcoa Corporation and subsidiaries | ||||||||||||||||||||||
Calculation of Financial Measures (unaudited) | ||||||||||||||||||||||
(in millions, except per-share amounts) | ||||||||||||||||||||||
Adjusted Income | Income (Loss) | Diluted EPS(4) | ||||||||||||||||||||
Quarter ended | Quarter ended | |||||||||||||||||||||
Estimated | March 31, | June 30, | Estimated | March 31, | June 30, | |||||||||||||||||
Net income (loss) attributable to Alcoa Corporation | $ | 5 - 25 | $ | (252) | $ | (102) | $ | 0.03 - 0.14 | $ | (1.41) | $ | (0.57) | ||||||||||
Special items: | ||||||||||||||||||||||
Restructuring and other charges, net | ~20 | 202 | 24 | |||||||||||||||||||
Other special items(1) | ~(20) | 22 | 35 | |||||||||||||||||||
Discrete and other tax items impacts(2) | ~0 | — | 1 | |||||||||||||||||||
Tax impact on special items(3) | ~5 | (60) | (13) | |||||||||||||||||||
Noncontrolling interest impact(3) | ~5 | (57) | (7) | |||||||||||||||||||
Subtotal | ~10 | 107 | 40 | |||||||||||||||||||
Net income (loss) attributable to Alcoa | $ | 15 - 35 | $ | (145) | $ | (62) | $ | 0.08 - 0.19 | $ | (0.81) | $ | (0.35) | ||||||||||
Net income (loss) attributable to Alcoa Corporation – as adjusted and Diluted EPS – as adjusted are non-GAAP financial measures. Management believes these measures are meaningful to investors because management reviews the operating results of Alcoa Corporation excluding the impacts of restructuring and other charges, various tax items, and other special items (collectively, "special items"). There can be no assurances that additional special items will not occur in future periods. To compensate for this limitation, management believes it is appropriate to consider Net income (loss) attributable to Alcoa Corporation and Diluted EPS determined under GAAP as well as Net income (loss) attributable to Alcoa Corporation – as adjusted and Diluted EPS – as adjusted. | |
(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 Alcoa Corporation (GAAP or as adjusted), the average number of shares applicable to diluted earnings per share exclude certain share equivalents as their effect is anti-dilutive. |