Alcoa Corp (NYSE: AA) reported better-than-expected earnings for its first quarter and raised its FY18 adjusted EBITDA outlook.
The company, a global leader in bauxite, alumina, and aluminum products today reported first quarter 2018 results that show resilient profitability amid lower alumina prices earlier in the year.
In first quarter 2018, Alcoa reported net income of $150 million, or $0.80 per share. In fourth quarter 2017, Alcoa reported a net loss of $196 million, or $1.06 per share, which included $391 million in special items tied primarily to previously announced actions taken in line with the Company’s strategic priorities.
Alcoa reported first-quarter 2018 revenue of $3.1 billion, down 3% sequentially, largely due to decreased aluminum shipments and a decline in alumina prices, partially offset by both increased shipments and favorable mix in alumina and higher aluminum prices.
Cash from operations in first quarter 2018 was $55 million and free cash flow was a negative $19 million primarily due to seasonal increases in working capital. Cash used for financing activities and investing activities was $147 million and $74 million, respectively, in the first quarter of 2018.
In addition, Alcoa ended the quarter on March 31, 2018 with a cash balance of $1.2 billion, down $162 million sequentially, but up $392 million year-over-year.
Alcoa is projecting a global deficit for both aluminum and alumina in 2018.
Shares in Alcoa acquired $2.05, or 3.4%, midday Thursday to $61.45
