|
2020 Outlook
The Company has updated annual Aluminum segment shipments to between 2.9
and 3.0 million metric tons from its earlier outlook of between 3.0 and
3.1 million metric tons, due to the impact of the Intalco curtailment on
the second half of 2020. The Company’s 2020 shipment outlook for Bauxite
and Alumina remain unchanged from the prior full-year estimates. Total
annual bauxite shipments are expected to range between 48.0 and 49.0
million dry metric tons. Total alumina shipments are projected between
13.6 and 13.7 million metric tons.
In the second quarter of 2020, Alcoa expects lower quarterly results in
the Bauxite segment primarily due to the non-recurrence of an annual
sales contract true up. In the Alumina segment, the Company expects
benefits from lower costs for raw materials. In the Aluminum segment,
the Company expects performance to be nearly flat, as improvements from
lower alumina costs, smelter power costs and production costs are
expected to be offset by lower Brazil Hydro sales prices and lower value
add pricing and volumes.
The Company recognized significant currency benefits related to the
strengthening of the U.S. dollar in the first quarter 2020, and it
continues to be exposed to impacts of currency rate fluctuations in the
second quarter.
The Company expects its annual operational tax rate will vary with
market conditions and jurisdictional profitability and is withdrawing
its prior outlook of 70 to 80 percent.
The extent and duration of the coronavirus COVID-19 pandemic is unknown.
The uncertainty around the future impact on the Company’s business,
financial condition, operating results, and cash flows could cause
actual results to differ from this outlook.
Market Update
Due to the uncertainty regarding the COVID-19 pandemic and its effect on
the global economy, Alcoa has suspended its quarterly projections on
global supply/demand balances for bauxite, alumina, and aluminum.
Table: Segment Information (unaudited)
(dollars in millions, except realized prices; dry metric tons in
millions (mdmt); metric tons in thousands (kmt))
|
|
1Q19 |
2Q19 |
3Q19 |
4Q19 |
2019 |
1Q20 |
|
Bauxite: |
|
|
|
|
|
|
|
Production (mdmt) |
11.9 |
11.3 |
12.1 |
12.1 |
47.4 |
11.6 |
|
Third-party shipments (mdmt) |
1.2 |
1.5 |
2 |
1.5 |
6.2 |
1.4 |
|
Intersegment shipments (mdmt) |
10.2 |
10.3 |
10.6 |
10.3 |
41.4 |
10.5 |
|
Third-party sales |
$65 |
$67 |
$100 |
$65 |
$297 |
$71 |
|
Intersegment sales |
$236 |
$246 |
$251 |
$246 |
$979 |
$235 |
|
Segment Adjusted EBITDA(2) |
$126 |
$112 |
$134 |
$132 |
$504 |
$120 |
|
Depreciation, depletion, and amortization |
$28 |
$27 |
$35 |
$30 |
$120 |
$34 |
|
Alumina: |
|
|
|
|
|
|
|
Production (kmt) |
3240 |
3309 |
3380 |
3373 |
13302 |
3298 |
|
Third-party shipments (kmt) |
2329 |
2299 |
2381 |
2464 |
9473 |
2365 |
|
Intersegment shipments (kmt) |
972 |
1070 |
1049 |
981 |
4072 |
1075 |
|
Average realized third-party price per metric ton of alumina |
$385 |
$376 |
$324 |
$291 |
$343 |
$299 |
|
Third-party sales |
$897 |
$864 |
$771 |
$718 |
$3,250 |
$707 |
|
Intersegment sales |
$417 |
$445 |
$369 |
$330 |
$1,561 |
$336 |
|
Segment Adjusted EBITDA |
$372 |
$369 |
$223 |
$133 |
$1,097 |
$193 |
|
Depreciation and amortization |
$48 |
$55 |
$54 |
$57 |
$214 |
$49 |
|
Equity income (loss) |
$12 |
$3 |
$— |
($9) |
$6 |
($9) |
|
Aluminum: |
|
|
|
|
|
|
|
Primary aluminum production (kmt) |
537 |
533 |
530 |
535 |
2135 |
564 |
|
Third-party aluminum shipments(kmt) |
709 |
724 |
708 |
718 |
2859 |
725 |
|
Average realized third-party price per metric ton of primary
aluminum |
$2,219 |
$2,167 |
$2,138 |
$2,042 |
$2,141 |
$1,988 |
|
Third-party sales |
$1,735 |
$1,757 |
$1,677 |
$1,634 |
$6,803 |
$1,598 |
|
Intersegment sales |
$3 |
$4 |
$4 |
$6 |
$17 |
$3 |
|
Segment Adjusted EBITDA(2) |
($96) |
$3 |
$43 |
$75 |
$25 |
$62 |
|
Depreciation and amortization |
$89 |
$85 |
$88 |
$84 |
$346 |
$81 |
|
Equity (loss) income |
($22) |
($17) |
($5) |
($5) |
($49) |
$5 |
Source:
Alcoa |
(To contact the reporter on this story: jemma.shang@steelhome.cn or 86-555-2238875 18155520624) |
