Q2 2024 Alcoa Corp Earnings Call Transcript
Key Points
- Alcoa Corp (AA) is nearing completion of the Alumina Limited acquisition, expected to close on August 1, which is anticipated to bring significant benefits.
- Safety programs are showing positive results, with improvements in both leading and lagging indicators.
- Revenue increased to $2.9 billion due to higher alumina and aluminum prices, with net income improving to $20 million from a prior quarter loss.
- Adjusted EBITDA increased by $193 million to $325 million, driven by higher average realized prices for alumina and aluminum.
- Operational stability is evident with production records at Canadian smelters and Mosjoen, and improving stability at the Alumar smelter.
- Higher alumina costs are expected to negatively impact the aluminum segment by $60 million in the third quarter.
- San Ciprián operations face challenges with competitive energy solutions and potential sale processes, with no immediate resolution in sight.
- Corporate costs increased due to labor-related expenses, and further increases are expected in the third quarter.
- Interest expense is projected to rise due to debt assumed from the Alumina Limited acquisition.
- Working capital changes and capital expenditures were significant uses of cash in the first half of 2024, impacting free cash flow.
Good afternoon and welcome to the Alcoa Corporation second quarter 2024 earnings presentation and conference call. All participants will be in a listen-only mode. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to James Dwyer, Vice President, Investor Relations & Pension Investments. Please go ahead, sir.
Thank you and good day, everyone. I'm joined today by William Oplinger, Alcoa Corporation President and Chief Executive Officer; and Molly Beerman, Executive Vice President and Chief Financial Officer. We will take your questions after comments by Bill and Molly.
As a reminder, today's discussion will contain forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats. Factors that may cause the company's actual results to differ materially from these statements are included in today's presentation and in our SEC filings.
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