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Alcoa Q4 Profit Trumps Wall Street Estimates

alcoa jan16 19jan22 lt

Aluminum producer Alcoa Corp. (AA), Wednesday reported a fourth-quarter results, with adjusted earnings trouncing Wall Street view.

Pittsburgh-based Alcoa reported fourth-quarter loss of $392 million or $2.11 per share, compared to last year's loss of $4 million or $0.02 per share.

Excluding one-time items, earnings for the quarter were $475 million or $2.50 per share, compared to last year's profit of $49 million or $0.26 per share. On average, 9 analysts polled by Thomson Reuters expected earnings of $1.96 per share.

Revenues for the quarter rose to $3.34 billion from $2.39 billion a year ago. Analysts had a consensus revenue estimate of $3.36 billion. Revenue growth were driven by higher aluminum and alumina prices.

"We had a transformative year in 2021; we posted our highest ever annual net income, returned cash to our stockholders and significantly reduced our debt and pension obligations," said Alcoa President and Chief Executive Officer Roy Harvey. "Our performance demonstrates that our long-term strategies are delivering value and strengthening Alcoa, so we can be successful through all phases of the commodity cycle.

Alumina shipments dropped to 2.29 million metric tons from 2.31 million metric tons last year. Aluminum shipments slipped to 687 thousand metric tons from 735 thousand metric tons last year. Bauxite shipments dropped to 1.6 million dry metric tons from 1.9 million last year.

Average price per metric ton of alumina increased to $407 from $268 last year, while aluminum's average price rose to $3,382 per metric ton from $2,094 per metric ton last year.

Looking forward to 2022, the company projects bauxite shipments to range between 48.0 and 49.0 million dry metric tons, consistent with 2021. Total alumina shipments are expected to be between 14.2 and 14.4 million metric tons, an increase from 2021. The Aluminum segment is expected to ship between 2.5 and 2.6 million metric tons, a net decrease from 2021 primarily related to the divestiture of the Warrick Rolling Mill and changes in the smelting portfolio.

AA closed Wednesday's trading at $59.63, down $0.42 or 0.70%, on the NYSE. The stock, however, gained $0.77 or 1.29% in the after-hours trade.

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