Alcoa Corp (AA) Reports Q3 2023 Earnings: Increased Shipments Despite Lower Prices
Alcoa Corp (NYSE:AA) reported increased third-party shipments in both segments and a sequential improvement in cash generated from operations.
Despite lower sequential average realized prices for alumina and aluminum, the company managed to generate $69 million in cash from operations.
Alcoa Corp (NYSE:AA) ended the third quarter with a cash balance of $926 million.
The company also paid a quarterly cash dividend of $0.10 per share of common stock, totaling $18 million.
Alcoa Corp (NYSE:AA) released its Q3 2023 earnings report on October 18, 2023. The company reported increased third-party shipments in its two segments and a sequential improvement in cash generated from operations, despite lower sequential average realized prices for alumina and aluminum.
Financial Performance and Highlights
Alcoa Corp (NYSE:AA) reported a net loss of $168 million, or $0.94 per share, for Q3 2023. This is compared to a net loss of $102 million, or $0.57 per share, in Q2 2023, and a net loss of $746 million, or $4.17 per share, in Q3 2022. The company's total third-party revenue for Q3 2023 was $2.60 billion, a decrease from $2.68 billion in the prior quarter.
Despite the lower prices, the company managed to increase third-party shipments of alumina by 11 percent and aluminum by 1 percent sequentially. The company also generated $69 million in cash from operations, a sequential improvement of $82 million, and ended the quarter with a cash balance of $926 million.
It is a true honor to take the helm at Alcoa as we further position the Company for long-term success," said Alcoa President and CEO William F. Oplinger. In the third quarter, we saw positive improvements in raw material and production costs, but lower average realized pricing for alumina and aluminum had the biggest impact on our results, he said. Moving forward, we are laser-focused on improvement, and were working across our global system to increase margins through operational productivity, Oplinger said.
Key Strategic Actions and Outlook
During Q3 2023, Alcoa Corp (NYSE:AA) continued to make progress with relevant state government agencies in support of the annual mine approvals process for bauxite mining at the Huntly and Willowdale mines. The company also initiated a cost reduction program at the Kwinana refinery in Australia and gained greater market penetration for Alcoas Sustana line of low-carbon products.
Looking ahead, the company expects the outlook for 2023 total alumina and aluminum shipments to remain unchanged between 12.7 and 12.9 million metric tons, and between 2.5 and 2.6 million metric tons, respectively.
Alcoa Corp (NYSE:AA) will hold its quarterly conference call at 5:00 p.m. Eastern Daylight Time (EDT) on Wednesday, October 18, 2023, to present third quarter 2023 financial results and discuss the business, developments, and market conditions.
This article first appeared on GuruFocus.
