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Alcoa Sees Q2 Above View - Quick Facts

Alcoa Corp. (AA) expects a net loss attributable to the company for the second-quarter to be between $205 million and $190 million, compared to net income attributable to the company of $80 million in the first quarter 2020.

The expected sequential decrease was driven primarily by the non-recurrence of the gain recorded in the first quarter of 2020 from the sale of the waste processing facility in Gum Springs, Arkansas, in addition to lower alumina and aluminum prices.

For the second quarter of 2020, the company projects loss per share to be in the range of $1.10 - $1.02; adjusted results of break even per share - loss of $0.08 per share. Analysts polled by Thomson Reuters expect the company to report a loss of $0.54 per share for the second-quarter. Analysts' estimates typically exclude special items.

Quarterly revenue is expected to be in the range of $2.10 billion - $2.175 billion. Analysts expect revenues of $2.09 billion. Demand for aluminum value-added products declined in the second quarter 2020 compared with the first quarter 2020, with volume shifting into lower priced commodity-grade ingot. Additional volume from the progressing restart at the Bécancour smelter in Québec, Canada is expected to partially offset the premium price decline.

The company noted that its cash balance rose to more than $950 million with improved productivity and continued stability in operations during the coronavirus pandemic.

Production at the company's mining and refining locations is expected to increase about 5 percent and 2 percent, respectively, compared with the first quarter 2020 production results. Primary aluminum production is expected to increase approximately 3 percent compared with the first quarter of 2020.

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