SMM, April 23, recently Alcoa (Alcoa Corporation, hereinafter referred to as "Alcoa") in its official website announced the first quarter of 2020 report. Alcoa reported a net profit of $80 million, or 43 cents a share, for the first quarter, and an adjusted net loss of $42 million, or 23 cents a share, excluding non-recurring gains and losses. Revenue for the first quarter was $2.381 billion, down 12.5 per cent from a year earlier.
The following are the translations and comments made by SMM for important parts of the report.
Alcoa Chairman and Mr. CEO Roy Harvey said, "We showed a strong cash balance in the first quarter, but the world was already severely affected by the New Crown pneumonia outbreak, so we also made decisive decisions to deal with the crisis; we are very concerned about the health and safety of our employees, companies and communities. We have taken a lot of rapid action to ensure the sound operation of the company. "
Update on the impact of the epidemic situation of Xinguan pneumonia
Alcoa has taken strong measures to protect the health and safety of employees and communities.
Alcoa-owned bauxite mines, alumina plants, electrolytic aluminum plants, warehouses, energy assets and cast-rolling capacity remain in operation. The company will give priority to ensuring the health and safety of its employees, actively cooperate with public health and relevant government departments, including maintaining a certain social distance, increasing epidemic prevention agreements, and encouraging telecommuting.
Strategic Planning and Project Progress Update in 2020
Alcoa announced in September 2019 that it would develop a new operating model, which will be launched in the second quarter of 2020, saving $60 million a year in administrative expenses.
Alcoa sold its waste disposal plant in Gum Spring, Arkansas for $250 million on January 31, 2020.
Alcoa announced today (22 / 4 / 2020) that its Intalco electrolytic aluminium plant, located in Ferndale, Washington, will reduce its remaining low-competitive capacity by 230000 tons, plus a previous reduction of 49000 tons, which will be completed in July 2020, with a net loss of $24 million in the first quarter of 2020. After the reduction, Alcoa's electrolytic aluminum production capacity will reach 880000 tons, accounting for about 30 percent of its total electrolytic aluminum production capacity.
The report revealed that bauxite production in the first quarter of 2020 was 11.6 million tons, down 2.52% from the same period last year, down 4.13% from the same period last year; alumina production was 3.298 million tons, up 1.79% from the same period last year, down 2.22% from the previous month; and electrolytic aluminum production was 564000 tons, up 5.03% from the same period last year and 5.42% from the same period last year.
Affected by the reduction in Intalco production, Alcoa will reduce the volume of electrolytic aluminum shipments to 290-3 million tons in the second half of 2020. Bauxite planned annual shipments of 4800-49 million dry tons, alumina planned annual shipments of 1360 to 13.7 million tons.
For the second half of 2020, Alcoa predicts a decline in the performance of its bauxite section, mainly due to the termination of an annual contract. The alumina section may be more profitable as a result of lower costs. Electrolytic aluminum plate is expected to be flat, mainly due to the cost of alumina, energy and power and production costs will move down, while product prices and sales will also decline.
Alcoa said it was not forecasting the balance of supply and demand in the global bauxite, alumina and electrolytic aluminium markets because of uncertainty about the impact of the new crown pneumonia outbreak on the global economy.
SMM will continue to follow up the production and operation of aluminum enterprises at home and abroad.