Alcoa (AA.US) Q3 beats EPS expectations, swings to profit from loss YoY
1min read On Wednesday after the U.S. markets closed, Alcoa Corporation (AA.US) reported its Q3 2024 results. The data showed that the company's Q3 revenue was US$2.9 billion, up 12% YoY, lower than the market's expectation of US$2.95 billion; net profit was US$90 million, compared to a loss of US$168 million in the same period last year; adjusted EPS was US$0.57, better than the market's expectation of US$0.33.
For the third quarter, the production of alumina decreased by 4% QoQ to 2.44 million tons, mainly due to the shutdown of the Kwinana smelter. Aluminum production increased by 3% QoQ to 559,000 tons, mainly due to the ongoing progress in restarting the Alumar smelter.
Regarding shipments, shipments of alumina to third parties decreased by 9% QoQ, mainly due to reduced trading volumes. Aluminum shipments decreased by 6% QoQ.
Adjusted EBITDA was US$455 million, up US$130 million QoQ, mainly due to the rise in alumina prices and the decrease in raw material costs.
As of the end of the quarter, the Company's cash balance was US$1.3 billion.
William F. Oplinger, President and CEO of Alcoa, said: "In the third quarter, we maintained the pace of implementing strategic actions. After completing the acquisition of Alumina Limited and announcing the sale of our interest in the Ma'aden joint venture, we gained flexibility. Positive market conditions and our focus on continuous improvement made the third-quarter results stronger, while we continued to implement plans to further strengthen our operations."
Looking ahead, Alcoa expects its total alumina production in 2024 to remain consistent with its previous forecast, between 9.8 million and 10.0 million tons. The Company raised its shipment forecast to 12.9 million to 13.1 million tons, up 200,000 tons from its previous forecast, mainly due to increased trading volumes.
Alcoa expects its total aluminum production and shipments in 2024 to remain unchanged, at 2.2 million to 2.3 million tons and 2.5 million to 2.6 million tons, respectively.
As of the time of writing, Alcoa's shares rose 5.3% after-hours to US$44.30. The stock has risen 25% year-to-date.