Alcoa Corporation Reports Production and Unaudited Consolidated Earnings Results for Fourth Quarter and Year Ended December 31, 2018; Reaches Tentative Agreement with Workers Representatives At Its Avilés and La Coruña Aluminum Plants in Spain; Provides Production Guidance for the Year 2019
January 16, 2019 at 09:12 pm
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Alcoa Corporation reported unaudited consolidated earnings results for fourth quarter and year ended December 31, 2018. For the quarter, the company's sales were USD 3,344 million against USD 3,174 million a year ago. Net income was USD 212 million against loss of USD 56 million a year ago. Basic and diluted EPS attributable to company common shareholders was USD 0.23 against loss of USD 1.06 a year ago.
For the year, the company's sales were USD 13,403 million against USD 11,652 million a year ago. Net income was USD 871 million against USD 559 million a year ago. Basic EPS attributable to company common shareholders was USD 1.22 against USD 1.18 a year ago. Diluted EPS attributable to company common shareholders was USD 1.20 against USD 1.16 a year ago.
For the quarter, the company's bauxite production was 11.8 mdmt against 12.1 mdmt a year ago. Alumina production was 3,297 kmt against 3,331 kmt a year ago. Primary aluminum production was 573 kmt against 598 kmt a year ago.
For the year, the company's bauxite production was 45.8 mdmt against 45.8 mdmt a year ago. Alumina production was 12,857 kmt against 13,096 kmt a year ago. Primary aluminum production was 2,259 kmt against 2,328 kmt a year ago.
On January 16, 2019, the Company reached a tentative agreement with workers' representatives at its Avilés and La Coruña aluminum plants in Spain as part of the collective dismissal process announced in October. The plan, subject to ratification of the workforce by the end of the month, calls for the curtailment of the two smelters' remaining, combined operating capacity of 124,000 annual metric tons. The casthouses at both plants and the paste plant at La Coruña would remain in operation. A social plan included in the tentative agreement preserves a portion of the jobs at the two facilities and includes retirement packages and potential relocation to the Company's San Ciprián facility.
For the year 2019, the company projects total bauxite shipments to range between 47.0 million and 48.0 million dry metric tons. Total alumina shipments are expected to be between 13.6 million and 13.7 million metric tons with anticipated operational improvements and higher year-on-year production. Aluminum is expected to ship between 2.8 million and 2.9 million metric tons, which reflects the expiration of a can sheet tolling agreement in the flat-rolled business.
Alcoa Corporation is a vertically integrated aluminum company, which is engaged in bauxite mining, alumina refining, aluminum production (smelting and casting), and energy generation. The Companyâs operations consist of two reportable business segments: Alumina and Aluminum. The Alumina segment consists of the Companyâs worldwide refining system, which processes bauxite into alumina. The alumina produced by this segment is sold primarily to internal and external aluminum smelter customers; a portion of the alumina is sold to external customers who process it into industrial chemical products. The Companyâs Aluminum segment consists of worldwide smelting and cast house system, which processes alumina into primary aluminum, and portfolio of energy assets in Brazil, Canada, and the United States. Its smelting operations produce molten primary aluminum, which is then formed by the casting operations into either common alloy ingot or into value-add ingot products.
Alcoa Corporation Reports Production and Unaudited Consolidated Earnings Results for Fourth Quarter and Year Ended December 31, 2018; Reaches Tentative Agreement with Workers’ Representatives At Its Avilés and La Coruña Aluminum Plants in Spain; Provides Production Guidance for the Year 2019