Alcoa Corp (NYSE:AA) reported better-than-expected results for its fourth quarter. However, the company said it projects aluminum segment shipping 2.7 million to 2.8 million metric tons this year, down from the three million tons it shipped in 2020.
In the fourth quarter, Alcoa continued to safely maintain operations during the ongoing COVID-19 pandemic; all production sites remain fully operational.
AA also realized a 15% sequential increase in sales revenue of value-add products due to improving demand in the Aluminum segment.
Set quarterly production records in the Bauxite segment and the Western Australian alumina refining portfolio. Generated $38 million in cash from operations after making a $250 million contribution to U.S. pension plans
Cash balance $1.6 billion as of December 31, 2020
Alcoa reported net loss of $4 million, or $0.02 per share, in the fourth quarter 2020, an improvement from the net loss of $49 million, or $0.26 per share, in the third quarter 2020.
The improved sequential results are primarily due to higher aluminum prices and a lower provision for income taxes, partially offset by lower alumina and aluminum shipments and higher restructuring-related charges in the quarter.
"In a very challenging year, we set multiple production records, exceeded our goals for cash management, and made significant progress on our multi-year strategy," said Alcoa CEO Roy Harvey.
"We had a very solid fourth quarter, and the work we accomplished in 2020 positions us well to capture the benefits of an improved market."
AA shares lost $1.87, or 8.2%, to $20.97
