In This Article:
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Revenue: Increased 20% sequentially to $3.5 billion.
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Alumina Segment Revenue: Third-party revenue increased 45% due to higher prices and shipments.
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Aluminum Segment Revenue: Third-party revenue increased 5% primarily due to higher prices.
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Net Income: Fourth-quarter net income attributable to Alcoa was $202 million, up from $90 million in the prior quarter.
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Earnings Per Share (EPS): Doubled to $0.76 per share.
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Adjusted Net Earnings: $276 million or $1.04 per share.
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Adjusted EBITDA: Increased by $222 million to $677 million.
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Profitability Improvement Program: Exceeded the $645 million target, achieving $675 million in improvements.
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Debt Repayment: Repaid $385 million of debt.
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Cash Balance: Ended the quarter with $1.1 billion in cash.
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Return on Equity: Positive 6.5% year-to-date.
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Days Working Capital: Decreased by 11 days to 34 days.
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Dividend: Fourth-quarter dividend added $27 million to stockholder capital returns.
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Free Cash Flow: Positive for the quarter.
Release Date: January 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Alcoa Corp (NYSE:AA) achieved a 20% sequential increase in revenue, reaching $3.5 billion.
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The company exceeded its $645 million profitability improvement program ahead of schedule.
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Alcoa Corp (NYSE:AA) successfully onboarded new talent and promoted a culture of high performance and continuous improvement.
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The company expanded important customer and supplier relationships and invested in growth CapEx to enhance value-add products.
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Alcoa Corp (NYSE:AA) started delevering the company with the repayment of $385 million of debt while maintaining its quarterly dividend.
Negative Points
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Alcoa Corp (NYSE:AA) faced increased other costs primarily related to intersegment eliminations.
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The Kwinana curtailment has been slow to deliver savings due to high transition and holding costs.
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The company anticipates unfavorable performance in the Aluminum segment due to lower seasonal pricing and absence of Ma'aden offtake shipping volumes.
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Alcoa Corp (NYSE:AA) expects transformation costs to increase to $75 million, reflecting accelerated remediation activities.
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The company faces uncertainty related to the impact of potential new US tariffs, which could affect supply, demand, and trade flows.
Q & A Highlights
Q: If there are 25% tariffs on Canada, how would Alcoa handle the volume shift, and what impact would it have on the Midwest premium? A: William Oplinger, President and CEO, stated that the Midwest premium would likely increase significantly to attract volumes into the US. Alcoa might redirect Canadian metal to Europe, while Middle Eastern and Indian metal could flow into North America due to a potential 15% trade differential.