Alcoa Inc. (AA, Financial) released its financial results for the third quarter of 2024, reporting a revenue of $2.90 billion, up 12% year-over-year but below the market expectation of $2.95 billion. The company achieved a net profit of $90 million, compared to a significant loss of $168 million in the same period last year. Adjusted earnings per share reached $0.57, exceeding market predictions of $0.33.
During the third quarter, alumina production declined by 4% quarter-over-quarter to 2.44 million tons, primarily due to the shutdown of the Kwinana refinery. However, aluminum production increased by 3% to 559,000 tons, driven by progress in restarting operations at the Alumar refinery.
Alcoa experienced a 9% decrease in third-party alumina shipments, mainly due to reduced trading volume, while aluminum shipments fell by 6% quarter-over-quarter. The company's adjusted EBITDA grew by $130 million to $455 million, attributed to higher alumina prices and lower raw material costs.
The company's cash balance at the end of the quarter stood at $1.3 billion. Alcoa's President and CEO, William F. Oplinger, highlighted the company's strategic actions, including the acquisition of Alumina Limited and the announced sale of its stake in the Ma'aden joint venture, which provided increased flexibility. The positive market environment and continued focus on improvement strengthened Q3 results.
Looking ahead, Alcoa maintains its 2024 alumina production forecast at 9.8-10 million tons and raised its shipment forecast to 12.9-13.1 million tons, up by 200,000 tons due to increased trading volumes. The company expects aluminum production and shipment to remain consistent with previous projections, between 2.2-2.3 million tons and 2.5-2.6 million tons, respectively.
In after-hours trading, Alcoa shares rose 5.3% to $44.30, with the stock showing a 25% increase year-to-date.
