Alcoa Posts Loss Due To Charges, But Tops Street

(RTTNews) - Alcoa Inc. (AA), the largest producer of aluminum in the US, Thursday posted a loss for the fourth quarter, hurt largely by hefty one-time charges related to closures in the Upstream business. Nevertheless, on an adjusted basis, earnings for the quarter trumped Wall Street analysts' estimates, while revenues fell short of expectations.

New York-based Alcoa reported fourth-quarter loss of $500 million or $0.39 per share, compared to last year's profit of $159 million or $0.12 per share last year.

The quarter's bottom line were impacted by special charges of $565 million related primarily to closures or curtailments of capacity in the Upstream business and income tax charges.

Excluding one-time items, fourth-quarter profit were $65 million or $0.04 per share, down from $432 million or $0.33 per share a year ago. Analysts polled by Thomson Reuters expected earnings of $0.02 per share. Analysts' estimates typically exclude special items.

Sales for the quarter dropped 18 percent to $5.25 billion from $6.38 billion last year. Analysts had a consensus revenue estimate of $5.29 billion for the quarter.

The decline in revenues reflect lower alumina and aluminum prices, the impact of divested, curtailed or closed facilities, and unfavorable currency. In 2015, the Midwest transaction price for primary aluminum fell $657 per metric ton, or 28 percent, and the Alumina Price Index dropped $154 per metric ton, or 43 percent, the company said.

"As a result of our closures, curtailments, productivity actions and new business structure we improved competitiveness and strengthened the portfolio. We are fully on track to launch two strong, standalone companies in the second half of 2016," said CEO Klaus Kleinfeld.

Alcoa will soon separate into two companies-- a higher-margin manufacturing operations and a smelting and refining business. The split is expected to be complete by the second half of next year.

AA closed Monday's trading at $8.00, down $0.07 or 0.87%, on the NYSE. The stock, however, gained $0.16 or 2.00% in the after-hours trade.