Alcoa Q4 Results Miss View

(RTTNews) - Alcoa Corp. (AA), the largest producer of aluminum in the US, Wednesday posted a wider-than-expected loss for the fourth quarter, reflecting a drop in revenues.

Pittsburgh-based Alcoa reported fourth-quarter net loss of $303 million or $1.63 per share, compared with last year's profit of $51 million or $0.27 per share.

Adjusted loss for the quarter were $57 million or $0.31 per share, compared with adjusted profit of $133 million or $0.70 per share last year. On average, 10 analysts polled by Thomson Reuters expected loss of $0.22 per share.

Sales for the quarter dropped to $2.44 billion from $3.34 billion last year. Analysts had a consensus revenue estimate of $2.47 billion.

"In 2019, we acted to further strengthen Alcoa, completing the divestiture of uncompetitive assets, modernizing labor agreements in three countries, implementing a new operating model, and making quick progress on the asset review process we announced last quarter," said CEO Roy Harvey.

Alumina shipments rose to 2.46 million metric tons from 2.37 million metric tons last year.

Looking forward to 2020, Alcoa projects bauxite shipments to range between 48.0 and 49.0 million dry metric tons. Total alumina shipments are expected to be between 13.6 and 13.7 million metric tons. Aluminum is expected to ship between 3.0 and 3.1 million metric tons.

Further, Alcoa said it is closing one alumina refinery as part of its multi-year "asset review process" and that is selling assets as previously announced.

AA closed Wednesday's trading at $20.18, down $0.19 or 0.93%, on the Nasdaq. The stock further gained $0.56 or 2.78% in the after-hours trading.