Al Root
Alcoa posted better-than-expected second-quarter results ahead of closing a key deal. Shares were rising in after-hours trading.
Wednesday evening, Alcoa announced second-quarter adjusted earnings before interest, taxes, depreciation, and amortization, or Ebitda, of $325 million and earnings per share of 16 cents from $2.9 billion in sales. Wall Street was looking for Ebitda of $314 million and EPS of 8 cents from sales of $2.8 billion.
Shares were up 1% in after-hours trading at $37.19 apiece. The stock closed down 4.8% in regular trading while the S&P 500 and Dow Jones Industrial Average dropped 1.4% and gained 0.6%, respectively.
Looking ahead, full-year shipment guidance remains unchanged. Alcoa expects to ship about 12.8 million tons of alumina and about 2.6 million tons of aluminum in 2024.
The company's acquisition of Alumina Limited, announced earlier in 2024, should be completed in early August. It will help Alcoa reduce operating costs by providing it with more control over its raw materials and a simpler operating structure.
"It was another fast-paced quarter at Alcoa as we approach the closing of the acquisition of Alumina Limited and continue to execute initiatives to further enhance our operations," said CEO William Oplinger. "Our continuous improvement focus remains high and, along with positive markets, led to stronger results for the second quarter."
Benchmark aluminum prices are about $2,400 a metric ton, down from the May peak of more than $2,700 a ton, but up from about $2,200 a ton a year ago.
Management hosts a conference call at 5 p.m. Eastern time to discuss results. Investors and analysts will want to hear more about the economy and demand for aluminum.
Through Wednesday trading, Alcoa stock was up about 8% year to date.
Write to Al Root at allen.root@dowjones.com
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(END) Dow Jones Newswires
July 17, 2024 16:41 ET (20:41 GMT)
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