VANCOUVER (miningweekly.com) – The NYSE-listed stock of base metals producer Alcoa gained nearly 6% on Tuesday after the company reported higher-than-expected fourth-quarter revenue.
In its first quarterly report since spinning out its upstream and downstream business segments in November, New York-based Alcoa reported adjusted earnings, that typically exclude special one-off items, of $26-million, or $0.14 a share. Shares had risen 42% since US President Donald Trump was elected on November 8.
The company reported a net loss of $125-million, or $0.68 a share, owing to costs to streamline the portfolio.
Revenue came in at $2.5-billion, up 9% sequentially, the company reported, and slightly higher than Wall Street analyst forecasts, reflecting higher volume in the company’s rolled products business, and higher alumina pricing.
Adjusted earnings before interest, taxes, depreciation and amortisation, excluding special items of $335-million, were up 18% sequentially at $335-million on rising alumina pricing.
“Rising alumina and aluminium prices improved the bottom line, our alumina segment had exceptional profit growth in a stronger market environment and doubled margins, while our bauxite business also increased profits and reported robust margins. In addition, we continued to streamline our portfolio and generated cash to strengthen the balance sheet,” Alcoa CEO Roy Harvey stated.
Alcoa had $853-million cash in the bank at December 31, and $1.4-billion debt, for net debt of $600-million.
The company, which produces aluminium, alumina and bauxite, said it expected 4% growth in global aluminium demand in 2017. It expected bauxite and alumina markets to be relatively balanced in 2017 and a modest global aluminium surplus of 400 000 t to 800 000 t.