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Released April 13, 2016 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Alcoa Inc.'s (NYSE:AA) (New York City, New York) capital expenditures for the just-ended first quarter 2016 were roughly flat with those of the same period a year earlier, despite an 85% drop in profits over that time frame, the aluminum producer reported. Industrial Info is tracking 47 active Alcoa projects worth $5.72 billion.
Capital expenditures for first-quarter 2016 totaled $451 million, compared with $447 million in the same quarter of 2015. Net revenue for the just-ended quarter totaled $16 million, down from $108 million a year earlier. The company reported revenue of $4.9 billion, down 15% from first-quarter 2015.
Continued low alumina and aluminum prices, foreign exchange impacts and divested, curtailed or closed operations were the reasons for the drop in revenue, Alcoa said. Realized aluminum prices fell to $1,793 per metric tonne in the first quarter from $2,420 a year earlier, the company reported.
The company has steadily curtailed or closed many of its alumina and aluminum operations worldwide as a means of balancing the market. Executives said during the company earnings conference call on Tuesday that they expect to fully curtail operations at the Point Comfort, Texas alumina refinery by mid-year.
The company is continuing to make operational cuts. In the Engineering, Products and Solutions segment, Alcoa reported it reduced 600 positions in the first quarter and plans to reduce an additional 400 positions this year.
"Also, given the current market environment, we're evaluating a further reduction of up to 1,000 positions," said Chief Financial Officer William Oplinger.
Alcoa plans to split into two companies--Arconic, a value-added products provider, and the "new Alcoa," which will comprise the upstream businesses--bauxite, alumina, aluminum, cast products and energy. The separation will be completed in the second half of 2016.
Chief Executive Officer Klaus Kleinfeld said profits grew in all of the Arconic segments, led by automotive and aerospace, and the upstream segments maintained profitability despite the low prices.
For related information, see January 14, 2016, article - Alcoa Banks on Global Aluminum Deficit as it Pushes to Split into Two Companies, and September 29, 2015, article - Alcoa CEO: Company Split to Create Separate 'Value Engines'.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Capital expenditures for first-quarter 2016 totaled $451 million, compared with $447 million in the same quarter of 2015. Net revenue for the just-ended quarter totaled $16 million, down from $108 million a year earlier. The company reported revenue of $4.9 billion, down 15% from first-quarter 2015.
Continued low alumina and aluminum prices, foreign exchange impacts and divested, curtailed or closed operations were the reasons for the drop in revenue, Alcoa said. Realized aluminum prices fell to $1,793 per metric tonne in the first quarter from $2,420 a year earlier, the company reported.
The company has steadily curtailed or closed many of its alumina and aluminum operations worldwide as a means of balancing the market. Executives said during the company earnings conference call on Tuesday that they expect to fully curtail operations at the Point Comfort, Texas alumina refinery by mid-year.
The company is continuing to make operational cuts. In the Engineering, Products and Solutions segment, Alcoa reported it reduced 600 positions in the first quarter and plans to reduce an additional 400 positions this year.
"Also, given the current market environment, we're evaluating a further reduction of up to 1,000 positions," said Chief Financial Officer William Oplinger.
Alcoa plans to split into two companies--Arconic, a value-added products provider, and the "new Alcoa," which will comprise the upstream businesses--bauxite, alumina, aluminum, cast products and energy. The separation will be completed in the second half of 2016.
Chief Executive Officer Klaus Kleinfeld said profits grew in all of the Arconic segments, led by automotive and aerospace, and the upstream segments maintained profitability despite the low prices.
For related information, see January 14, 2016, article - Alcoa Banks on Global Aluminum Deficit as it Pushes to Split into Two Companies, and September 29, 2015, article - Alcoa CEO: Company Split to Create Separate 'Value Engines'.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
