Alcoa Fourth-Quarter Revenue Declines 20% on Lower Aluminum Prices

Shipments of aluminum were up 3% from the prior quarter thanks to factory restarts in Brazil and Australia. In 2023, Alcoa expects to ship between 2.5 million and 2.6 million metric tons of aluminum.

The company recorded a second consecutive quarterly loss, to $374 million from $392 million year over year. On a per-share basis, the loss was $2.12 compared with $2.11 a year earlier. Adjusted loss was 70 cents a share, compared with earnings per share of $2.50 in the year-ago quarter. Analysts polled by FactSet expected an adjusted loss of 81 cents a share.

Alcoa, which also reported its full-year results Wednesday, saw aluminum and alumina pricing rise in the first half of 2022, followed by falling prices in the second half of the year. Higher costs for raw materials, energy and production have persisted, the company said.

The company said its loss included a $217 million charge related to a tax expense.

 “We will address current challenges while maintaining our future focus, as the long-term outlook for our industry remains strong,”  Chief Executive

Roy Harvey

said.

The Dow Jones U.S. Aluminum Total Stock Market Index was down 41 points, or more than 2%, to 1974 in Wednesday afternoon trading. 

Alcoa reports its financial results days after announcing executive leadership changes, effective Feb. 1, that include Chief Financial Officer William Oplinger’s reassignment to chief operations officer in addition to his executive vice president role. Additionally, Senior vice president and controller

Molly Beerman

was appointed executive vice president and CFO.

The C-suite shuffle also included the departure of

John Slaven

as EVP and chief operating officer and

Benjamin Kahrs

as EVP and chief innovation officer, among other changes.

Alcoa shares were down nearly 4% to $51.35 in after-hours trading.

Write to Denny Jacob at [email protected]

Shipments of aluminum were up 3% from the prior quarter thanks to factory restarts in Brazil and Australia. In 2023, Alcoa expects to ship between 2.5 million and 2.6 million metric tons of aluminum.

The company recorded a second consecutive quarterly loss, to $374 million from $392 million year over year. On a per-share basis, the loss was $2.12 compared with $2.11 a year earlier. Adjusted loss was 70 cents a share, compared with earnings per share of $2.50 in the year-ago quarter. Analysts polled by FactSet expected an adjusted loss of 81 cents a share.

Alcoa, which also reported its full-year results Wednesday, saw aluminum and alumina pricing rise in the first half of 2022, followed by falling prices in the second half of the year. Higher costs for raw materials, energy and production have persisted, the company said.

The company said its loss included a $217 million charge related to a tax expense.

 “We will address current challenges while maintaining our future focus, as the long-term outlook for our industry remains strong,”  Chief Executive

Roy Harvey

said.

The Dow Jones U.S. Aluminum Total Stock Market Index was down 41 points, or more than 2%, to 1974 in Wednesday afternoon trading. 

Alcoa reports its financial results days after announcing executive leadership changes, effective Feb. 1, that include Chief Financial Officer William Oplinger’s reassignment to chief operations officer in addition to his executive vice president role. Additionally, Senior vice president and controller

Molly Beerman

was appointed executive vice president and CFO.

The C-suite shuffle also included the departure of

John Slaven

as EVP and chief operating officer and

Benjamin Kahrs

as EVP and chief innovation officer, among other changes.

Alcoa shares were down nearly 4% to $51.35 in after-hours trading.

Write to Denny Jacob at [email protected]