Alcoa Corporation Reports Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016
January 24, 2017 at 04:10 pm
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Alcoa Corporation reported unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, the company reported sales of $2,537 million against $2,451 million a year ago. Loss before income taxes was $123 million against $798 million a year ago. Net loss attributable to company was $125 million or $0.68 per basic and diluted share against $826 million or $4.52 per basic and diluted share a year ago. Adjusted net income attributable to company was $26 million or $0.14 per share against loss of $106 million or $0.58 per basic and diluted share a year ago. Adjusted EBITDA was $182 million against $186 million a year ago.
For the year, the company reported sales of $9,318 million against $11,199 million a year ago. Loss before income taxes was $162 million against $337 million a year ago. Net loss attributable to company was $400 million or $2.19 per basic and diluted share against $863 million or $4.73 per basic and diluted share a year ago. Cash provided used for operations was $311 million against cash provided from operations of $875 million a year ago. Capital expenditures were $404 million against $391 million a year ago. Adjusted net loss attributable to company was $227 million or $1.24 per basic and diluted share against income of $103 million or $0.57 per basic and diluted share a year ago. Adjusted EBITDA was $718 million against $780 million a year ago. Net debt was $593 million. The full year net loss was driven largely by costs associated with portfolio restructuring decisions, including the closure of the Warrick smelter and the Suralco refinery and mines, and the impairment of the WA gas field. Adjusted EBITDA excluding special items for 2016 was $1.1 billion, compared to $1.8 billion in 2015, due to lower alumina and aluminum pricing during the first three quarters and incremental costs to operate the Warrick, IN rolling mill as a cold metal plant, partially offset by net productivity improvements. Revenue in 2016 was down 17% from 2015, reflecting lower pricing and volumes in alumina and aluminum, slightly offset by higher third-party bauxite shipments.
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 
