Alcoa Reports Q2 Net Income Up 16 Percent, Year-On-Year

Alcoa (NYSE:AA) recently reported its second quarter earnings results, noting a 16 percent increase in net income, year over year.
As quoted in the press release, Q2 financial highlights included:

• Net income of $140 million, or $0.10 per share; excluding special items, net income of $250 million, or $0.19 per share, up 16 percent, year-over-year
• Revenue of $5.9 billion driven by strong organic growth in aerospace, automotive and alumina businesses
• Record Engineered Products and Solutions after-tax operating income of $210 million, up 4 percent, and aerospace revenue up 29 percent, both year-over-year
• Global Rolled Products after-tax operating income of $76 million, up 9 percent, adjusted EBITDA per metric ton up 18 percent, and automotive sheet revenue up approximately 180 percent, all year-over-year
• Alumina after-tax operating income of $215 million, best first half profitability since 2007
• Primary Metals after-tax operating income of $67 million, as Midwest transaction price declined $527 per metric ton, or 22 percent, year-to-date through June 30
• $324 million in productivity gains across all segments year-over-year
• Cash from operations of $472 million and free cash flow of $205 million after $300 million natural gas supply prepayment for Australian refineries; $1.3 billion cash on hand

Alcoa chairman and CEO, Klaus Kleinfeld, said:

We continue to transform Alcoa; our portfolio reshaping combined with smart investments in growth markets is delivering strong results. Our value-add businesses are outperforming, with record profitability in the downstream and exciting profitable growth in the midstream. Recent acquisitions are fully on track, and paired with our innovations we are cementing Alcoa’s position as a premier aerospace and automotive partner. In the upstream, our Alumina business delivered its best first half since 2007 and our lower cost metals business showed resilience in the face of strong market headwinds. Productivity and cash generation were excellent.

Click here to read the full Alcoa (NYSE:AA) press release.