Alcoa Corporation (AA), a global leader in bauxite, alumina, and aluminum products, reported its fourth-quarter (Q4) earnings on Wednesday, revealing a loss of $150 million or $0.84 per share. This result beat the analysts' consensus estimate of a loss of $0.85 per share, as adjusted for one-time gains and costs. The company's revenue in the quarter came in at $2.6 billion, slightly missing the estimated $2.61 billion by analysts.

The Pittsburgh-based company experienced a wider loss for the full year, reporting $651 million, or $3.65 per share, compared to a loss of $571 million in 2022. Total revenue for the year was $10.55 billion.

Alcoa's Q4 performance can be attributed to lower production from its Australia refineries, which led to a 1% decrease in alumina production to 2.79 million metric tons. Aluminum production, on the other hand, increased by 2% to 541,000 metric tons.

In the Alumina segment, third-party shipments of alumina decreased by 5% sequentially due to decreased trading. In contrast, total shipments in the Aluminum segment increased by 1%.

Looking ahead, Alcoa expects its alumina production to range between 9.8 and 10.0 million metric tons in 2024, with alumina shipments expected to range between 12.7 and 12.9 million metric tons. The difference between production and shipments reflects trading volumes and externally sourced alumina to fulfill customer contracts due to the curtailment of the Kwinana refinery.

The Aluminum segment is projected to produce 2.2 to 2.3 million metric tons in 2024, an increase from 2023 due to smelter restarts. Aluminum shipments are expected to be between 2.5 million and 2.6 million metric tons, consistent with 2023 levels, as increased shipments from smelter restarts are offset by lower trading volumes.

Alcoa's stock has been under pressure in the last 12 months, falling by 50% to $27.18 as of the final minutes of trading on Wednesday. Over the same period, the S&P 500 index has decreased by almost 1%. In the past year, the company's shares have declined by 20%.

Despite the challenges faced by the company in recent times, Alcoa's robust production and shipment forecasts for 2024 offer hope for a potential turnaround. The company's ability to maintain consistent shipments from smelter restarts and manage trading volumes will be critical factors in achieving these targets.

Investors should closely monitor Alcoa's progress as it strives to improve its financial performance in the coming year. The company's strong presence in the global bauxite, alumina, and aluminum market positions it as a key player in the industry and a potential candidate for growth opportunities in the future.

AA shares are down in after hours trade following results.

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