Investing.com - Alcoa Corp (NYSE:AA) gained 2.2% in after-hours trade on Wednesday after unveiling preliminary financial results for the second quarter of 2024.
CEO William F. Oplinger expressed optimism about the preliminary results, attributing them to market improvements. The company is also gearing up to finalize the acquisition of Alumina Limited by August 1, 2024.
Revenues are expected to range between $2,850 million and $2,925 million, indicating an increase from both Q1 2024 ($2,599 million) and Q2 2023 ($2,684 million).
Net income is projected between $5 million and $25 million for Q2 2024, a significant improvement from the net losses of $252 million in Q1 2024 and $102 million in Q2 2023.
Income per share is expected between $0.03 and $0.14, compared to a loss of $1.41 per share in Q1 2024 and a loss of $0.57 per share in Q2 2023.
The preliminary results suggest a decrease in alumina production of about 5%, primarily due to the full curtailment of the Kwinana refinery in June 2024. However, aluminum production is expected to be on par with the strong output of Q1 2024.
Meanwhile, total aluminum shipments are expected to rise by about 7%, primarily driven by the timing of shipments and the restart of one potline at Warrick Operations in Q1 2024.
Alcoa's cash balance is anticipated to be about $1.4 billion at the end of June 2024, consistent with the prior quarter. This balance results from increased cash provided from operations, partially offset by increased capital expenditures.
The company also highlighted key actions, including the acquisition of Alumina Limited and the advancement of ELYSIS technology. Alcoa continues to work towards viable energy solutions for the San Ciprián refinery and smelter and the potential sale of the complex.
Furthermore, the full curtailment of the Kwinana refinery in Australia was successfully completed in June 2024.