SMM4, March 24: affected by the epidemic, the aluminum market oversupply, Alcoa company (Alcoa) introduced a series of measures, such as closing the US Intalco aluminum smelter, cutting $100m in capital expenditure, deferring the payment of $220 million in pensions and so on.
In addition, production at Alcoa's Intalco aluminium smelter in Washington will be cut by 230000 tons by July 2020. In addition, five other smelters owned by Alcoa are losing money. Nevertheless, Alcoa believes that maintaining domestic production is essential to national security.
In January, Aloca forecast that the global aluminum glut would reach 1 million tons in 2020, and on Wednesday, the company withdrew that forecast because of uncertainty about the outbreak.
In March, LME3 monthly aluminium prices fell sharply, the biggest monthly decline since 2011. The epidemic has had a great impact on the whole aluminum industry chain.
The company reported a profit of $80 million in the first quarter of 2020, compared with a net loss of $199 million in the same period last year. After adjusting for one-time items, it made a profit of $42 million, the same as that adjusted for the same period last year. Revenue was $2.4 billion, up from $2.7 billion a year ago.
At the end of the first quarter, the company said it had total cash and debt of $829 million, total debt of $1.8 billion and net debt of $973 million.
Alcoa key Financial data and indicators for the first quarter of 2020
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