- Alcoa Corp AA reported first-quarter revenue growth of 14.7% year-over-year to $3.29 billion, missing the consensus of $3.44 billion.
- Adjusted EPS improved to $3.06, beating the consensus of $2.97.
- Adjusted EBITDA doubled to $1.07 billion (+105.8% Y/Y), and the margin expanded by 1,440 bps to 32.5%.
- Aluminum segment, revenue increased 3% sequentially due to strong market pricing. The average realized price for primary aluminum increased 14% sequentially to $3,861 per metric ton.
- Primary aluminum production decreased 10% sequentially on the curtailment of the San Ciprián smelter and fewer days in the quarter.
- AA’s cash generated from operating activities for the quarter was $34 million, compared to $6 million a year ago. Free Cash outflow was $(40) million.
- The company repurchased $75 million in shares of common stock and paid $18 million in cash dividends. It has a cash balance of $1.6 billion at the end of the quarter.
- 2Q22 Outlook: Alcoa expects both alumina and aluminum realized third-party prices to be higher than the first quarter, with that benefit partly offset by ~$115 million of higher energy and raw materials costs.
- It expects second-quarter tax expense to be ~$220 million to $230 million.
- FY22 Outlook: Alcoa decreased its projection for bauxite shipments by 2 million dry metric tons to 46.0 and 47.0 million dry metric tons.
- It expects total alumina and aluminum shipments to remain unchanged between 14.2 and 14.4 million metric tons and between 2.5 and 2.6 million metric tons.
- Price Action: AA shares are trading lower by 4.57% at $82.95 during the post-market session on Wednesday.
- Photo via Wikimedia Commons
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