PITTSBURGH – Alcoa Corporation (NYSE: NYSE:) today reported notable second-quarter earnings, with adjusted earnings per share of $0.16, ahead of analyst consensus of $0.06. Revenue also exceeded expectations, coming in at $2.91 billion, versus the expected $2.85 billion. The results reflect a robust alumina and aluminum market, with prices driving sales growth.
AA shares rose 1.8% after the release.
The company’s financial performance marked a significant turnaround from the previous quarter’s losses, with a sequential revenue increase of 12%. Net income attributable to Alcoa Corporation was $20 million, or $0.11 per share, a substantial recovery from the first quarter loss of $252 million, or -$1.41 per share, and the prior year loss of $102 million, or -$0.57 per share. .
Adjusted EBITDA excluding special items increased to $325 million, a sharp increase from the $132 million reported in the first quarter and the $137 million year-over-year (year-over-year). This improvement was attributed to higher average realized prices for alumina and aluminum, coupled with lower production and raw material costs, partially offset by increased energy costs.
Alcoa President and CEO William F. Oplinger attributed the improved results to the company’s continuous improvement initiatives and favorable market conditions. “Our focus on operational excellence and strategic initiatives positioned us to capitalize on current market dynamics, leading to a solid quarter,” said Oplinger.
Looking ahead, Alcoa provided guidance for the third quarter of 2024, calling for operating tax expense to be in the range of $60 million to $70 million. The company also expects an increase in interest expense of approximately $5 million as a result of the acquisition of Alumina (OTC:) Limited debt.
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