Alcoa Slashes Alumina Guidance, Q2 Misses on Late-Quarter Aluminum Price Drop
AA sits 62% above its 52-week low of $28.11.
Summary
Alcoa cut full-year alumina production guidance by 200,000-300,000 metric tons and shipments by 300,000-400,000 metric tons due to organic compound issues and a cyclone at its Pinjarra refinery. Q2 adjusted EPS of $2.12 missed estimates by $0.13, and revenue of $3.97B fell short of $3.99B, driven by a sharp aluminum price drop in late June that the company's 15-day pricing lag couldn't offset. Alumina prices remain stable despite 3-3.5 million metric tons of capacity offline in the Strait of Hormuz due to the Iran war, though Middle East demand and margins have weakened. The stock fell 2.7% after hours. This follows the June 11 warning of 120,000 metric tons in Q2 shipment losses from Pinjarra, now quantified in full-year terms. The South32 acquisition, valued at up to $5.6 billion, adds strategic context but does not offset near-term operational headwinds.
At the time of this announcement, AA was trading at $45.60 on NYSE in the Manufacturing sector, with a market capitalization of approximately $12.4B. The 52-week trading range was $28.11 to $84.38. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.