Alcoa Reports 'Solid' Performance for Q1

Alcoa Inc. (NYSE:AA) released its results for the first quarter of 2016, commenting that is performance was “solid.” The company also said it is on track to complete its separation in the second half of the year.
Consolidated highlights for Q1 2016 are as follows:

• Net income of $16 million, or $0.00 per share; excluding special items, net income of $108 million, or $0.07 per share
• Revenue of $4.9 billion, down 15 percent year-over-year, reflects:
  • 5.7 percent revenue increase related to acquisitions and organic growth, more than offset by a 20.7 percent revenue decline primarily from continued low alumina and aluminum prices, foreign exchange impacts and divested, curtailed or closed operations
• Asset sale resulting in gross proceeds of $234 million to strengthen balance sheet
• $1.4 billion cash on hand
• Strong productivity gains of $364 million, year-over-year, across all segments

Klaus Kleinfeld, chairman and CEO of Alcoa, commented:

Each of our segments delivered strong performance. Profits grew in all of the Arconic segments, led by automotive and aerospace; Upstream segments maintained profitability in a persistently low pricing environment. Productivity was high across the portfolio and we divested non-essential assets to strengthen the balance sheet. We won new contracts for bauxite supply, 3-D printed titanium aerospace parts, and airfoils in our largest IGT deal ever. Looking ahead, we are well on track to meet or exceed our three-year business targets in our segments, with the exception of EPS, where we have revised expectations to better reflect aerospace market conditions and Firth Rixson performance. Our separation is on course for completion later this year.

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