Revenue: The Company’s total third party revenue of $2.60 billion decreased from $2.68 billion in the prior quarter with lower average realized third party prices for alumina and aluminum.
Alumina decreased 2 percent and aluminum fell 9 percent, although those lower prices were partially offset by higher shipments in both the Alumina and Aluminum segments.
Shipments: In the Alumina segment, third-party shipments of alumina increased 11 percent sequentially, primarily due to increased trading and shipments across the worldwide refining system. In Aluminum, total shipments increased 1 percent sequentially.
Production: Alumina production increased 10 percent sequentially to 2.8 million metric tons primarily due to higher production at the Alumar refinery in Brazil after the conclusion of elevated maintenance and higher output from Australian refineries that are adapting to lower grade bauxite.
In Aluminum, Alcoa produced 532,000 metric tons, a sequential increase of 2 percent from the second quarter’s strong output, including multiple quarterly and year-to-date production records across the Canadian smelters.
Net loss attributable to Alcoa Corporation was $168 million, or $0.94 per share.
Sequentially, the results reflect lower alumina and aluminum prices and unfavorable currency impacts of $83 million, which were not offset by the benefits of lower raw material and production costs in both the Alumina and Aluminum segments.
Additionally, the third quarter results include the benefit of a $58 million valuation allowance reversal on the deferred tax assets of the Company’s subsidiaries in Iceland.
Adjusted net loss was $202 million, or $1.14 per share, excluding the impact from special items of $34 million of income.
Notable special items include $58 million in a net benefit for discrete tax items primarily related to the reversal of the tax valuation allowance described above, partially offset by a mark-to-market loss of $21 million related to energy contracts.
Adjusted EBITDA excluding special items was $70 million, a $67 million sequential decrease primarily due to lower prices for aluminum and alumina, partially offset by lower raw material and production costs. ■