Alcoa Flags Significant Q2 Alumina Shipment Drop, $45M in Added Costs After Cyclone
Summary
Alcoa expects Q2 alumina shipments from its Pinjarra refinery in Australia to fall by approximately 120,000 metric tons compared to Q1 due to Cyclone Narelle, incurring $30 million in added production costs. The company also anticipates an additional $15 million in Q2 fuel costs for its Sao Luis refinery in Brazil. The CFO stated the alumina business is "very pressured" and the segment as a whole will be "under water" due to low alumina prices and poor bauxite quality. This follows recent Q1 earnings misses and negative cash flow, indicating continued operational headwinds.
At the time of this announcement, AA was trading at $66.90 on NYSE in the Manufacturing sector, with a market capitalization of approximately $17.3B. The 52-week trading range was $27.72 to $84.38. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Reuters.