Alcoa net profit of $75 million in the two quarter, starting some smelting capacity
Alcoa Corp, recently released 2017 second quarter results. Despite the decline in alumina prices, Alcoa (Alcoa) still maintained a robust profitability, the company's shipping revenue and cash balances have increased.
In the two quarter of 2017, the company's net income was $75 million, with net revenues of $116 million excluding special items. Profits before interest, taxes, depreciation and amortization (excluding special items) are $483 million ($). Revenue of $2 billion 900 million, an increase of 8%.
As of June 30, 2017, the cash balance was $954 million, and net debt amounted to $1 billion 400 million.
President and CEO Roy Harvey said: "Alcoa created steady profitability in the second quarter, strong cash flow, cash balance growth has exceeded $950 million." "In the first half of this year, our adjusted EBITDA reached $1 billion, and despite the high cost of inputs, we are still expected to continue to improve in the second half.". The adjusted EBITDA (excluding special items) is expected to reach about $21-22 in 2017."
"We're looking for a simple strategy priority to reduce complexity, increase returns and strengthen our balance sheet," Harvey continued. We will continue to benefit our shareholders on the basis of these three key levers."
Alcoa's net income for the second quarter of this year was $75 million, excluding the $41 million spent on special projects, including some taxes and additional restructuring charges associated with earlier actions. In the second quarter, compared with $225 million in net earnings in the first quarter of the year ($1.21 per share), it included $120 million for the sale of Adkin (Yadkin) hydroelectric projects.
Excluding the impact of special projects, adjusted net income for the second quarter of 2017 was $116 million, or $0.62 per share. In the first quarter of this year, net income was $117 million, or $0.63 per share (excluding special items).
The report said the EBITDA in the second quarter, excluding special items, was $483 million, down 9% from $533 million in the first quarter. This is mainly due to a fall in the price of alumina (which bounced back later this season, partly offset by higher aluminium prices and other factors).
The report's second quarter earnings of $2 billion 900 million, an increase of 8%, reflect an increase in the company's portfolio shipments.
The company's operating cash for the second quarter was $311 million, and the free cash flow was $223 million. At the end of the second quarter, cash was $954 million, and net debt was $500 million after paying $1 billion 400 million in debt.
In July 11, 2017, Alcoa (Alcoa) announced that it would restart three of its five electrolytic cells at its Warrick smelter in Indiana for the company's joint steel plant. The process is expected to end in the second quarter of 2018. The plant, located in Evans Weil, Indiana, was the largest smelter in the United States until it was shut down more than a year ago. The shutdown in 2016 March was due to the dissatisfaction of us aluminium producers and the influx of Chinese products that enjoy government subsidies, which hurt the interests of American enterprises. The restart will increase the number of Warrick employees by about 275 on the basis of more than 1250 people, and will allow Alcoa to have about 886 thousand tons of idle refining in the total refining capacity of 3 million 400 thousand tonnes.
To increase the utilization rate of the comprehensive capacity based on the assets, the company decided the smelter will directly to the factory of metal smelting, followed by aluminum foil growth will be used for packaging packaging industry for food and beverage cans.
From the perspective of global alumina, is expected to Alcoa before the market supply scale from the flat to slightly short, slightly less than 800 thousand tons, and this appeared in the first quarter of 2017 compared to a slight surplus has improved. As for the global aluminium market, Alcoa expects an excess of 30-70 tonnes in 2017. And forecast that global aluminum demand growth will increase to 4.75%-5.25%, higher than the first quarter of 4.5%- 5%.