Alcoa misses by $0.10, beats on revs; sees 4% aluminum demand growth in 2017
- Reports Q4 (Dec) earnings of $0.14 per share, ex-$151 mln of special items primarily related to the permanent closure of Suralco's refinery and mines in Suriname and the impairment of Alcoa of Australia Limited's interests in a Western Australia gas field, $0.10 worse than the Capital IQ Consensus of $0.24; revenues rose 3.5% year/year to $2.54 bln vs the $2.37 bln Capital IQ Consensus, reflecting higher volumes in the Company's rolled products business, as well as rising alumina and aluminum pricing.
- Alcoa reported fourth quarter 2016 adjusted EBITDA excluding special items of $335 million, up 18 percent from third quarter 2016. Higher alumina and metal prices drove the sequential change in adjusted EBITDA, more than offsetting increased costs primarily tied to energy.
- For 2017, the Company projects relatively balanced global bauxite and alumina markets and a modest global aluminum surplus of 400 thousand to 800 thousand metric tons. Alcoa is projecting 2017 global aluminum demand growth of 4 percent over 2016.