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Alcoa Corporation (AA),  a global leader in bauxite, alumina, and al uminum products,  reported second quarter 2017 results after the market closed Wednesday. The stock had been rising on protectionist hopes as the Trump administration mulls curbs of imports on national security grounds. These were just the second results since AA split off it's aerospace division. Alcoa is a harbinger for many in the commodities and global growth sectors.

Earnings: EPS of 62 cents on revenue of $2.86 billion v's Expectations of EPS of 60 cents on revenue of $2.91 billion. Revenue was up 8 percent sequentially on higher shipments.

Reaction: Alcoa Corp NYSE: AA After-hours35.60 -0.90 (-2.47%)

 

“Alcoa generated solid profitability in the second quarter with strong cash flow that grew our cash balance to more than $950 million,” said Roy Harvey, President and Chief Executive Officer. “Through the first half of the year, our adjusted EBITDA topped $1 billion, and we expect improvements in the second half of 2017, despite higher input costs.”

Guidance

Alcoa tightened its outlook for full-year adjusted 2017 EBITDA, excluding special items, to $2.1 to $2.2 billion, from $2.1 to $2.3 billion, based on current market assumptions. In addition, Alcoa now expects negative $50 million in net performance for full year 2017, as strength in the global aluminum market drives up input costs.

Market Update

For 2017, Alcoa continues to project relatively balanced global markets for bauxite and alumina with a modest surplus for aluminum.

In global alumina, Alcoa now projects the market to range from being in balance to a slight deficit of 800 thousand metric tons in 2017, an improvement from the range of balanced to slight surplus expected in the first quarter of 2017.

In global aluminum, the Company maintains its expectation for a modest global surplus between 300 thousand to 700 thousand metric tons. Alcoa has increased its 2017 forecast for global aluminum demand growth to a range of 4.75 to 5.25 percent, up from 4.5 to 5 percent in the first quarter of 2017.

Conference Call

Alcoa will hold its quarterly conference call at 5:00 p.m. Eastern Daylight Time (EDT) on Wednesday, July 19, 2017 to present second quarter 2017 financial results, discuss the business and review market fundamentals.

The call will be webcast via the Company’s homepage on www.alcoa.com. Presentation materials for the call will be available for viewing at approximately 4:15 p.m. EDT on July 19th on the same website. Call information and related details are available under the “Investors” section of www.alcoa.com.

Source: Alcoa Press Release

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