Alcoa Corporation Reports Significant Financial Improvements in Q3 2024, Net Income Recovery

Alcoa Corporation reported significant financial improvements for the third quarter and nine months ended September 30, 2024, compared to the same periods in 2023. For Q3 2024, the company achieved sales of $2,904 million, up from $2,602 million in Q3 2023. The cost of goods sold decreased to $2,393 million from $2,469 million, contributing to a net income of $98 million, a substantial recovery from a net loss of $193 million in the prior year. This resulted in earnings per share of $0.39 for Q3 2024, compared to a loss of $0.94 per share in Q3 2023.

For the nine-month period, Alcoa's sales rose to $8,409 million from $7,956 million, while the cost of goods sold slightly decreased to $7,330 million from $7,388 million. The net loss for the nine months improved to $178 million from $546 million in 2023. The company attributed these positive changes to higher average realized prices for alumina and aluminum, favorable raw material and energy costs, and reduced equity losses.

Alcoa's strategic developments included the acquisition of Alumina Limited on August 1, 2024, valued at approximately $2,700 million. This acquisition is expected to enhance Alcoa's vertical integration in the aluminum supply chain. Additionally, on September 15, 2024, Alcoa agreed to sell its 25.1% interest in a Saudi Arabia joint venture to Ma’aden for approximately $950 million, subject to regulatory approvals.

The company also undertook restructuring efforts, incurring charges of $30 million in Q3 2024 and $250 million for the nine-month period, primarily related to the curtailment of the Kwinana refinery and other operational adjustments. The Kwinana refinery was fully curtailed in June 2024, leading to a significant reduction in employee count from approximately 780 to 300, with further reductions anticipated.

Alcoa's cash and cash equivalents increased to $1,313 million as of September 30, 2024, up from $944 million at the end of 2023. The company reported total assets of $14,542 million, an increase from $14,155 million at the end of 2023, and total shareholders’ equity rose to $5,250 million from $4,251 million.

Overall, Alcoa's performance in Q3 2024 reflects a recovery from previous losses, driven by strategic acquisitions, improved pricing, and operational efficiencies, despite ongoing challenges in certain segments.