Alcoa Corporation reported fourth quarter 2016 results. The company reported a net loss of $125 million, or $(0.68) per share.
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Results include $151 million of special items primarily related to the permanent closure of Suralco’s refinery and mines in Suriname and the impairment of Alcoa of Australia Limited’s (AofA) interests in a Western Australia (WA) gas field.
Fourth quarter 2016 results compare to a net loss of $10 million, or $(0.06) per share, in third quarter 2016.
Excluding the impact of special items, fourth quarter 2016 adjusted net income was $26 million, or $0.14 per share.
In third quarter 2016, Alcoa reported an adjusted net loss of $95 million, or $(0.52) per share, excluding special items.
Alcoa reported fourth quarter 2016 adjusted EBITDA excluding special items of $335 million, up 18 percent from third quarter 2016. Higher alumina and metal prices drove the sequential change in adjusted EBITDA, more than offsetting increased costs primarily tied to energy.
In fourth quarter 2016, Alcoa reported revenue of $2.5 billion, up 9 percent sequentially, reflecting higher volumes in the company’s rolled products business, as well as rising alumina and aluminum pricing.
In 2016, Alcoa reported a net loss of $400 million, or $(2.19) per share. Excluding special items, the company reported an adjusted net loss of $227 million, or $(1.24) per share.
The full year net loss was driven largely by costs associated with portfolio restructuring decisions, including the closure of the Warrick smelter and the Suralco refinery and mines, and the impairment of the WA gas field.
Adjusted EBITDA excluding special items for 2016 was $1.1 billion, compared to $1.8 billion in 2015, due to lower alumina and aluminum pricing during the first three quarters and incremental costs to operate the Warrick, IN rolling mill as a cold metal plant, partially offset by net productivity improvements.
Revenue in 2016 was $9.3 billion, down 17 percent from 2015, reflecting lower pricing and volumes in alumina and aluminum, slightly offset by higher third-party bauxite shipments.
In 2016, Alcoa invested in return-seeking capital projects of $82 million, and controlled sustaining capital expenditures to $322 million. Return on capital in 2016 was 5.3 percent. ■