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Alcoa (NYSE:AA) experienced a dip of 2.8% post-market on Wednesday after announcing a narrower Q4 adjusted loss. The company reported a 2.5% year-on-year decrease in revenues, amounting to $2.6 billion, consistent with market expectations. Meanwhile, costs plummeted by nearly 8% compared to the previous year.
The aluminum giant posted a GAAP loss of $150 million, equivalent to $0.84 per share, in contrast to a loss of $395 million, or $2.24 per share, during the same period in the previous year.
During Q4, Alcoa’s alumina production saw a 1% decline quarter-on-quarter to 2.79 million metric tons due to reduced output from its Australian refineries. However, aluminum production surged by 2% from the strong output of the previous quarter, reaching 541,000 tons.
While Q4 revenues dropped by 5% in the alumina segment due to a 3% decrease in average realized third-party price and lower shipments, revenues in the aluminum segment increased by 2% owing to a 1% rise in average realized third-party price and higher shipments.
Looking ahead to 2024, Alcoa expects alumina production to range between 9.8 million to 10 million metric tons, with alumina shipments hitting 12.7 million to 12.9 million metric tons. The aluminum production is projected to be between 2.2 million to 2.3 million tons, marking an increase from 2023 due to smelter restarts. Aluminum shipments are anticipated to reach 2.5 million to 2.6 million tons, consistent with 2023 figures. This is because the heightened shipments from smelter restarts are balanced out by lower trading volumes.
