PITTSBURGH--(BUSINESS WIRE)--Alcoa Corporation (NYSE: AA) today reported second quarter 2022 financial results that included an 11 percent sequential increase in revenue and strong cash flow that enabled stock buybacks and the payment of cash dividends.
Second Quarter Highlights
“We had a strong first half of 2022 with nearly $2 billion in Adjusted EBITDA and cash flows that have enabled more buybacks under our existing stock repurchase program as well as continued quarterly dividend payments,” said Alcoa President and CEO Roy Harvey. “We have returned more than $380 million so far this year to our investors, and today we announced an additional $500 million authorization for future stock repurchases.
“As we progress into the remainder of this volatile year, we remain focused on our strategic priorities and our vision to reinvent the aluminum industry for a sustainable future,” Harvey said.
Financial Results
M, except per share amounts |
2Q22 |
1Q22 |
2Q21 |
Revenue |
$3,644 |
$3,293 |
$2,833 |
Net income attributable to Alcoa Corporation |
$549 |
$469 |
$309 |
Earnings per share attributable to Alcoa Corporation |
$2.95 |
$2.49 |
$1.63 |
Adjusted net income |
$496 |
$577 |
$281 |
Adjusted earnings per share |
$2.67 |
$3.06 |
$1.49 |
Adjusted EBITDA excluding special items |
$913 |
$1,072 |
$618 |
Second Quarter 2022 Results
Strategic actions:
The Company expects total Aluminum segment shipments to remain unchanged from the prior forecast, ranging between 2.5 and 2.6 million metric tons in 2022.
In Alumina, the Company has decreased its 2022 projection for shipments to range between 13.6 and 13.8 million metric tons, a reduction of 0.6 million metric tons from the prior forecast primarily due to the lower shipments in the first half of 2022.
In Bauxite, the Company has decreased its 2022 projection for annual bauxite shipments to range between 44.0 and 45.0 million dry metric tons, a change of 2 million dry metric tons from the prior projection due to continuing disruptions in the Atlantic bauxite market and lower demand from refineries in the first half of 2022.
For the third quarter of 2022, Alcoa expects higher sequential profitability in the Bauxite segment with increased shipments, as refinery demand improves in the third quarter. In Alumina and Aluminum, shipments are expected to increase but will not fully offset higher costs for energy and raw materials.
The Company anticipates an approximately $20 million negative impact to net income in the third quarter as a result of the Warrick line curtailment. The decrease in production volume at the San Ciprián refinery reduces the impact of the continuing rise in natural gas prices but is not expected to improve net income significantly on a sequential basis.
Based on current alumina and aluminum market conditions, the Company expects third quarter tax expense to approximate $100 million to $110 million, which may vary with market conditions and jurisdictional profitability.
Conference Call
Alcoa will hold its quarterly conference call at 5:00 p.m. Eastern Daylight Time (EDT) on Wednesday, July 20, 2022, to present second quarter 2022 financial results and discuss the business, developments, and market conditions.
The call will be webcast via the Company’s homepage on www.alcoa.com. Presentation materials for the call will be available for viewing on the same website at approximately 4:15 p.m. EDT on July 20, 2022. Call information and related details are available under the “Investors” section of www.alcoa.com.
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina and aluminum products with a vision to reinvent the aluminum industry for a sustainable future. Our purpose is to turn raw potential into real progress, underpinned by Alcoa Values that encompass integrity, operating excellence, care for people and courageous leadership. Since developing the process that made aluminum an affordable and vital part of modern life, our talented Alcoans have developed breakthrough innovations and best practices that have led to improved safety, sustainability, efficiency, and stronger communities wherever we operate.
Discover more by visiting www.alcoa.com. Follow us on our social media channels: Facebook, Instagram, Twitter, YouTube and LinkedIn.
The Company does not incorporate the information contained on, or accessible through, such websites into this press release.
Dissemination of Company Information
Alcoa intends to make future announcements regarding company developments and financial performance through its website, www.alcoa.com, as well as through press releases, filings with the Securities and Exchange Commission, conference calls and webcasts.
Forward-Looking Statements
This news release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “aims,” “ambition,” “anticipates,” “believes,” “could,” “develop,” “endeavors,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,” “potential,” “plans,” “projects,” “reach,” “seeks,” “sees,” “should,” “strive,” “targets,” “will,” “working,” “would,” or other words of similar meaning. All statements by Alcoa Corporation that reflect expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, forecasts concerning global demand growth for bauxite, alumina, and aluminum, and supply/demand balances; statements, projections or forecasts of future or targeted financial results, or operating or sustainability performance (including our ability to execute on strategies related to environmental, social and governance matters); statements about strategies, outlook, and business and financial prospects; and statements about capital allocation and return of capital. These statements reflect beliefs and assumptions that are based on Alcoa Corporation’s perception of historical trends, current conditions, and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and changes in circumstances that are difficult to predict. Although Alcoa Corporation believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Such risks and uncertainties include, but are not limited to: (a) current and potential future impacts to the global economy and our industry, business and financial condition caused by various worldwide or macroeconomic events, such as the COVID-19 pandemic and the ongoing conflict between Russia and Ukraine, and related regulatory developments; (b) material adverse changes in aluminum industry conditions, including global supply and demand conditions and fluctuations in London Metal Exchange-based prices and premiums, as applicable, for primary aluminum and other products, and fluctuations in indexed-based and spot prices for alumina; (c) changes in global economic and financial market conditions generally, such as inflation and interest rate increases, and which may also affect Alcoa Corporation’s ability to obtain credit or financing upon acceptable terms or at all; (d) unfavorable changes in the markets served by Alcoa Corporation; (e) the impact of changes in foreign currency exchange and tax rates on costs and results; (f) increases in energy or raw material costs, or uncertainty of or disruption to energy or raw materials supply, and to the supply chain including logistics; (g) the inability to execute on strategies related to or achieve improvement in profitability and margins, cost savings, cash generation, revenue growth, fiscal discipline, environmental- and social-related goals and targets (including due to delays in scientific and technological developments), or strengthening of competitiveness and operations anticipated from portfolio actions, operational and productivity improvements, technology advancements, and other initiatives; (h) the inability to realize expected benefits, in each case as planned and by targeted completion dates, from acquisitions, divestitures, restructuring activities, facility closures, curtailments, restarts, expansions, or joint ventures; (i) political, economic, trade, legal, public health and safety, and regulatory risks in the countries in which Alcoa Corporation operates or sells products; (j) labor disputes and/or work stoppages and strikes; (k) the outcome of contingencies, including legal and tax proceedings, government or regulatory investigations, and environmental remediation; (l) the impact of cyberattacks and potential information technology or data security breaches; (m) risks associated with long-term debt obligations; (n) the timing and amount of future cash dividends and share repurchases; (o) declines in the discount rates used to measure pension and other postretirement benefit liabilities or lower-than-expected investment returns on pension assets, or unfavorable changes in laws or regulations that govern pension plan funding; and, (p) the other risk factors discussed in Part I Item 1A of Alcoa Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, and other reports filed by Alcoa Corporation with the U.S. Securities and Exchange Commission. Alcoa Corporation disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law. Market projections are subject to the risks described above and other risks in the market.
Non-GAAP Financial Measures
Some of the information included in this release is derived from Alcoa Corporation’s consolidated financial information but is not presented in Alcoa Corporation’s financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Certain of these data are considered “non-GAAP financial measures” under SEC regulations. Alcoa Corporation believes that the presentation of non-GAAP financial measures is useful to investors because such measures provide both additional information about the operating performance of Alcoa Corporation and insight on the ability of Alcoa Corporation to meet its financial obligations by adjusting the most directly comparable GAAP financial measure for the impact of, among others, “special items” as defined by the Company, non-cash items in nature, and/or nonoperating expense or income items. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Reconciliations to the most directly comparable GAAP financial measures and management’s rationale for the use of the non-GAAP financial measures can be found in the schedules to this release.
Alcoa Corporation and subsidiaries
Statement of Consolidated Operations (unaudited) (dollars in millions, except per-share amounts) |
||||||||||||
|
Quarter Ended |
|||||||||||
|
June 30, 2022 |
March 31, 2022 |
June 30, 2021 |
|||||||||
Sales |
$ |
3,644 |
|
$ |
3,293 |
|
$ |
2,833 |
|
|||
|
|
|
|
|||||||||
Cost of goods sold (exclusive of expenses below) |
|
2,767 |
|
|
2,181 |
|
|
2,156 |
|
|||
Selling, general administrative, and other expenses |
|
52 |
|
|
44 |
|
|
54 |
|
|||
Research and development expenses |
|
7 |
|
|
9 |
|
|
6 |
|
|||
Provision for depreciation, depletion, and amortization |
|
161 |
|
|
160 |
|
|
161 |
|
|||
Restructuring and other charges, net |
|
(75 |
) |
|
125 |
|
|
33 |
|
|||
Interest expense |
|
30 |
|
|
25 |
|
|
67 |
|
|||
Other income, net |
|
(206 |
) |
|
(14 |
) |
|
(105 |
) |
|||
Total costs and expenses |
|
2,736 |
|
|
2,530 |
|
|
2,372 |
|
|||
|
|
|
|
|||||||||
Income before income taxes |
|
908 |
|
|
763 |
|
|
461 |
|
|||
Provision for income taxes |
|
234 |
|
|
210 |
|
|
111 |
|
|||
|
|
|
|
|||||||||
Net income |
|
674 |
|
|
553 |
|
|
350 |
|
|||
|
|
|
|
|||||||||
Less: Net income attributable to noncontrolling interest |
|
125 |
|
|
84 |
|
|
41 |
|
|||
|
|
|
|
|||||||||
NET INCOME ATTRIBUTABLE TO ALCOA CORPORATION |
$ |
549 |
|
$ |
469 |
|
$ |
309 |
|
|||
|
|
|
|
|||||||||
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA CORPORATION COMMON SHAREHOLDERS: |
|
|
|
|||||||||
Basic: |
|
|
|
|||||||||
Net income |
$ |
3.01 |
|
$ |
2.54 |
|
$ |
1.66 |
|
|||
Average number of shares |
|
182,499,574 |
|
|
184,550,123 |
|
|
186,705,311 |
|
|||
|
|
|
|
|||||||||
Diluted: |
|
|
|
|||||||||
Net income |
$ |
2.95 |
|
$ |
2.49 |
|
$ |
1.63 |
|
|||
Average number of shares |
|
186,068,663 |
|
|
188,536,773 |
|
|
190,195,453 |
|
Alcoa Corporation and subsidiaries
Statement of Consolidated Operations (unaudited) (dollars in millions, except per-share amounts) |
||||||||
|
Six Months Ended |
|||||||
|
June 30, 2022 |
June 30, 2021 |
||||||
Sales |
$ |
6,937 |
|
$ |
5,703 |
|
||
|
|
|
||||||
Cost of goods sold (exclusive of expenses below) |
|
4,948 |
|
|
4,448 |
|
||
Selling, general administrative, and other expenses |
|
96 |
|
|
106 |
|
||
Research and development expenses |
|
16 |
|
|
13 |
|
||
Provision for depreciation, depletion, and amortization |
|
321 |
|
|
343 |
|
||
Restructuring and other charges, net |
|
50 |
|
|
40 |
|
||
Interest expense |
|
55 |
|
|
109 |
|
||
Other income, net |
|
(220 |
) |
|
(129 |
) |
||
Total costs and expenses |
|
5,266 |
|
|
4,930 |
|
||
|
|
|
||||||
Income before income taxes |
|
1,671 |
|
|
773 |
|
||
Provision for income taxes |
|
444 |
|
|
204 |
|
||
|
|
|
||||||
Net income |
|
1,227 |
|
|
569 |
|
||
|
|
|
||||||
Less: Net income attributable to noncontrolling interest |
|
209 |
|
|
85 |
|
||
|
|
|
||||||
NET INCOME ATTRIBUTABLE TO ALCOA CORPORATION |
$ |
1,018 |
|
$ |
484 |
|
||
|
|
|
||||||
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA CORPORATION COMMON SHAREHOLDERS: |
|
|
||||||
Basic: |
|
|
||||||
Net income |
$ |
5.55 |
|
$ |
2.60 |
|
||
Average number of shares |
|
183,489,221 |
|
|
186,473,781 |
|
||
|
|
|
||||||
Diluted: |
|
|
||||||
Net income |
$ |
5.44 |
|
$ |
2.56 |
|
||
Average number of shares |
|
187,282,228 |
|
|
189,497,440 |
|
||
|
|
|
||||||
Common stock outstanding at the end of the period |
|
179,921,896 |
|
|
186,855,060 |
|
Alcoa Corporation and subsidiaries
Consolidated Balance Sheet (unaudited) (in millions) |
||||||||
|
June 30, 2022 |
December 31, 2021 |
||||||
ASSETS |
|
|
||||||
Current assets: |
|
|
||||||
Cash and cash equivalents |
$ |
1,638 |
|
$ |
1,814 |
|
||
Receivables from customers |
|
898 |
|
|
757 |
|
||
Other receivables |
|
124 |
|
|
127 |
|
||
Inventories |
|
2,556 |
|
|
1,956 |
|
||
Fair value of derivative instruments |
|
224 |
|
|
14 |
|
||
Prepaid expenses and other current assets(1) |
|
423 |
|
|
358 |
|
||
Total current assets |
|
5,863 |
|
|
5,026 |
|
||
Properties, plants, and equipment |
|
19,647 |
|
|
19,753 |
|
||
Less: accumulated depreciation, depletion, and amortization |
|
13,190 |
|
|
13,130 |
|
||
Properties, plants, and equipment, net |
|
6,457 |
|
|
6,623 |
|
||
Investments |
|
1,238 |
|
|
1,199 |
|
||
Deferred income taxes |
|
445 |
|
|
506 |
|
||
Fair value of derivative instruments |
|
15 |
|
|
7 |
|
||
Other noncurrent assets(2) |
|
1,691 |
|
|
1,664 |
|
||
Total assets |
$ |
15,709 |
|
$ |
15,025 |
|
||
LIABILITIES |
|
|
||||||
Current liabilities: |
|
|
||||||
Accounts payable, trade |
$ |
1,752 |
|
$ |
1,674 |
|
||
Accrued compensation and retirement costs |
|
341 |
|
|
383 |
|
||
Taxes, including income taxes |
|
343 |
|
|
374 |
|
||
Fair value of derivative instruments |
|
232 |
|
|
274 |
|
||
Other current liabilities |
|
567 |
|
|
517 |
|
||
Long-term debt due within one year |
|
1 |
|
|
1 |
|
||
Total current liabilities |
|
3,236 |
|
|
3,223 |
|
||
Long-term debt, less amount due within one year |
|
1,725 |
|
|
1,726 |
|
||
Accrued pension benefits |
|
369 |
|
|
417 |
|
||
Accrued other postretirement benefits |
|
626 |
|
|
650 |
|
||
Asset retirement obligations |
|
634 |
|
|
622 |
|
||
Environmental remediation |
|
254 |
|
|
265 |
|
||
Fair value of derivative instruments |
|
867 |
|
|
1,048 |
|
||
Noncurrent income taxes |
|
204 |
|
|
191 |
|
||
Other noncurrent liabilities and deferred credits |
|
502 |
|
|
599 |
|
||
Total liabilities |
|
8,417 |
|
|
8,741 |
|
||
EQUITY |
|
|
||||||
Alcoa Corporation shareholders’ equity: |
|
|
||||||
Common stock |
|
2 |
|
|
2 |
|
||
Additional capital |
|
9,313 |
|
|
9,577 |
|
||
Retained earnings (deficit) |
|
606 |
|
|
(315 |
) |
||
Accumulated other comprehensive loss |
|
(4,255 |
) |
|
(4,592 |
) |
||
Total Alcoa Corporation shareholders’ equity |
|
5,666 |
|
|
4,672 |
|
||
Noncontrolling interest |
|
1,626 |
|
|
1,612 |
|
||
Total equity |
|
7,292 |
|
|
6,284 |
|
||
Total liabilities and equity |
$ |
15,709 |
|
$ |
15,025 |
|
(1) |
This line item includes $42 and $4 of restricted cash at June 30, 2022 and December 31, 2021, respectively. |
|
(2) |
This line item includes $68 and $106 of noncurrent restricted cash at June 30, 2022 and December 31, 2021, respectively. |
Alcoa Corporation and subsidiaries
Statement of Consolidated Cash Flows (unaudited) (in millions) |
||||||||
|
Six Months Ended June 30, |
|||||||
|
2022 |
|
2021 |
|||||
CASH FROM OPERATIONS |
|
|
||||||
Net income |
$ |
1,227 |
|
$ |
569 |
|
||
Adjustments to reconcile net income to cash from operations: |
|
|
||||||
Depreciation, depletion, and amortization |
|
321 |
|
|
343 |
|
||
Deferred income taxes |
|
93 |
|
|
48 |
|
||
Equity earnings, net of dividends |
|
(61 |
) |
|
(46 |
) |
||
Restructuring and other charges, net |
|
50 |
|
|
40 |
|
||
Net loss (gain) from investing activities – asset sales |
|
5 |
|
|
(124 |
) |
||
Net periodic pension benefit cost |
|
28 |
|
|
24 |
|
||
Stock-based compensation |
|
20 |
|
|
18 |
|
||
Provision for bad debt expense |
|
— |
|
|
1 |
|
||
Premium paid on early redemption of debt |
|
— |
|
|
25 |
|
||
Gain on mark-to-market derivative financial contracts |
|
(123 |
) |
|
(5 |
) |
||
Other |
|
28 |
|
|
33 |
|
||
Changes in assets and liabilities, excluding effects of divestitures and foreign currency translation adjustments: |
|
|
||||||
Increase in receivables |
|
(119 |
) |
|
(270 |
) |
||
Increase in inventories |
|
(657 |
) |
|
(184 |
) |
||
Decrease in prepaid expenses and other current assets |
|
15 |
|
|
58 |
|
||
Increase in accounts payable, trade |
|
98 |
|
|
32 |
|
||
Decrease in accrued expenses |
|
(103 |
) |
|
(20 |
) |
||
(Decrease) Increase in taxes, including income taxes |
|
(79 |
) |
|
40 |
|
||
Pension contributions |
|
(9 |
) |
|
(570 |
) |
||
Increase in noncurrent assets |
|
(105 |
) |
|
(34 |
) |
||
Decrease in noncurrent liabilities |
|
(59 |
) |
|
(58 |
) |
||
CASH PROVIDED FROM (USED FOR) OPERATIONS |
|
570 |
|
|
(80 |
) |
||
|
|
|
||||||
FINANCING ACTIVITIES |
|
|
||||||
Additions to debt (original maturities greater than three months) |
|
— |
|
|
495 |
|
||
Payments on debt (original maturities greater than three months) |
|
— |
|
|
(776 |
) |
||
Proceeds from the exercise of employee stock options |
|
22 |
|
|
14 |
|
||
Repurchase of common stock |
|
(350 |
) |
|
— |
|
||
Dividends paid on Alcoa common stock |
|
(37 |
) |
|
— |
|
||
Payments related to tax withholding on stock-based compensation awards |
|
(19 |
) |
|
(1 |
) |
||
Financial contributions for the divestiture of businesses |
|
(9 |
) |
|
(13 |
) |
||
Contributions from noncontrolling interest |
|
83 |
|
|
— |
|
||
Distributions to noncontrolling interest |
|
(245 |
) |
|
(137 |
) |
||
Other |
|
(3 |
) |
|
(3 |
) |
||
CASH USED FOR FINANCING ACTIVITIES |
|
(558 |
) |
|
(421 |
) |
||
|
|
|
||||||
INVESTING ACTIVITIES |
|
|
||||||
Capital expenditures |
|
(181 |
) |
|
(154 |
) |
||
Proceeds from the sale of assets |
|
4 |
|
|
705 |
|
||
Additions to investments |
|
(21 |
) |
|
(3 |
) |
||
Sale of investments |
|
10 |
|
|
— |
|
||
Other |
|
2 |
|
|
— |
|
||
CASH (USED FOR) PROVIDED FROM INVESTING ACTIVITIES |
|
(186 |
) |
|
548 |
|
||
|
|
|
||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
|
(2 |
) |
|
(2 |
) |
||
Net change in cash and cash equivalents and restricted cash |
|
(176 |
) |
|
45 |
|
||
Cash and cash equivalents and restricted cash at beginning of year |
|
1,924 |
|
|
1,610 |
|
||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD |
$ |
1,748 |
|
$ |
1,655 |
|
Alcoa Corporation and subsidiaries
Segment Information (unaudited) (dollars in millions, except realized prices; dry metric tons in millions (mdmt); metric tons in thousands (kmt)) |
||||||||||||||||||||||||||||
|
1Q21 |
|
2Q21 |
|
3Q21 |
|
4Q21 |
|
2021 |
|
1Q22 |
|
2Q22 |
|||||||||||||||
Bauxite: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Production(1) (mdmt) |
|
11.9 |
|
|
12.2 |
|
|
11.7 |
|
|
11.8 |
|
|
47.6 |
|
|
11.0 |
|
|
10.2 |
|
|||||||
Third-party shipments (mdmt) |
|
1.5 |
|
|
1.1 |
|
|
1.5 |
|
|
1.6 |
|
|
5.7 |
|
|
0.8 |
|
|
0.6 |
|
|||||||
Intersegment shipments (mdmt) |
|
10.5 |
|
|
10.8 |
|
|
10.5 |
|
|
10.6 |
|
|
42.4 |
|
|
10.1 |
|
|
10.0 |
|
|||||||
Third-party sales |
$ |
58 |
|
$ |
39 |
|
$ |
56 |
|
$ |
83 |
|
$ |
236 |
|
$ |
43 |
|
$ |
34 |
|
|||||||
Intersegment sales |
$ |
185 |
|
$ |
179 |
|
$ |
172 |
|
$ |
175 |
|
$ |
711 |
|
$ |
170 |
|
$ |
165 |
|
|||||||
Segment Adjusted EBITDA(2) |
$ |
59 |
|
$ |
41 |
|
$ |
23 |
|
$ |
49 |
|
$ |
172 |
|
$ |
38 |
|
$ |
5 |
|
|||||||
Depreciation, depletion, and amortization |
$ |
57 |
|
$ |
32 |
|
$ |
30 |
|
$ |
34 |
|
$ |
153 |
|
$ |
35 |
|
$ |
35 |
|
|||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Alumina: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Production (kmt) |
|
3,327 |
|
|
3,388 |
|
|
3,253 |
|
|
3,291 |
|
|
13,259 |
|
|
3,209 |
|
|
3,226 |
|
|||||||
Third-party shipments (kmt) |
|
2,472 |
|
|
2,437 |
|
|
2,426 |
|
|
2,294 |
|
|
9,629 |
|
|
2,277 |
|
|
2,438 |
|
|||||||
Intersegment shipments (kmt) |
|
1,101 |
|
|
1,054 |
|
|
1,011 |
|
|
1,121 |
|
|
4,287 |
|
|
940 |
|
|
984 |
|
|||||||
Average realized third-party price per metric ton of alumina |
$ |
308 |
|
$ |
282 |
|
$ |
312 |
|
$ |
407 |
|
$ |
326 |
|
$ |
375 |
|
$ |
442 |
|
|||||||
Third-party sales |
$ |
760 |
|
$ |
688 |
|
$ |
756 |
|
$ |
935 |
|
$ |
3,139 |
|
$ |
855 |
|
$ |
1,077 |
|
|||||||
Intersegment sales |
$ |
364 |
|
$ |
343 |
|
$ |
349 |
|
$ |
530 |
|
$ |
1,586 |
|
$ |
418 |
|
$ |
489 |
|
|||||||
Segment Adjusted EBITDA(2) |
$ |
227 |
|
$ |
124 |
|
$ |
148 |
|
$ |
503 |
|
$ |
1,002 |
|
$ |
262 |
|
$ |
343 |
|
|||||||
Depreciation and amortization |
$ |
46 |
|
$ |
50 |
|
$ |
47 |
|
$ |
55 |
|
$ |
198 |
|
$ |
50 |
|
$ |
49 |
|
|||||||
Equity (loss) income |
$ |
(5 |
) |
$ |
(1 |
) |
$ |
(1 |
) |
$ |
11 |
|
$ |
4 |
|
$ |
1 |
|
$ |
(5 |
) |
|||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Aluminum: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Primary aluminum production (kmt) |
|
548 |
|
|
546 |
|
|
545 |
|
|
554 |
|
|
2,193 |
|
|
498 |
|
|
499 |
|
|||||||
Third-party aluminum shipments(3) (kmt) |
|
831 |
|
|
767 |
|
|
722 |
|
|
687 |
|
|
3,007 |
|
|
634 |
|
|
674 |
|
|||||||
Average realized third-party price per metric ton of primary aluminum |
$ |
2,308 |
|
$ |
2,753 |
|
$ |
3,124 |
|
$ |
3,382 |
|
$ |
2,879 |
|
$ |
3,861 |
|
$ |
3,864 |
|
|||||||
Third-party sales |
$ |
2,047 |
|
$ |
2,102 |
|
$ |
2,295 |
|
$ |
2,322 |
|
$ |
8,766 |
|
$ |
2,388 |
|
$ |
2,539 |
|
|||||||
Intersegment sales |
$ |
2 |
|
$ |
3 |
|
$ |
8 |
|
$ |
5 |
|
$ |
18 |
|
$ |
7 |
|
$ |
8 |
|
|||||||
Segment Adjusted EBITDA(2) |
$ |
283 |
|
$ |
460 |
|
$ |
613 |
|
$ |
523 |
|
$ |
1,879 |
|
$ |
713 |
|
$ |
596 |
|
|||||||
Depreciation and amortization |
$ |
73 |
|
$ |
73 |
|
$ |
72 |
|
$ |
71 |
|
$ |
289 |
|
$ |
69 |
|
$ |
71 |
|
|||||||
Equity income |
$ |
13 |
|
$ |
28 |
|
$ |
38 |
|
$ |
37 |
|
$ |
116 |
|
$ |
39 |
|
$ |
40 |
|
|||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Reconciliation of total segment Adjusted EBITDA to consolidated net income (loss) attributable to Alcoa Corporation: |
||||||||||||||||||||||||||||
Total Segment Adjusted EBITDA(2) |
$ |
569 |
|
$ |
625 |
|
$ |
784 |
|
$ |
1,075 |
|
$ |
3,053 |
|
$ |
1,013 |
|
$ |
944 |
|
|||||||
Unallocated amounts: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Transformation(4) |
|
(11 |
) |
|
(13 |
) |
|
(10 |
) |
|
(10 |
) |
|
(44 |
) |
|
(14 |
) |
|
(11 |
) |
|||||||
Intersegment eliminations |
|
(7 |
) |
|
35 |
|
|
(8 |
) |
|
(121 |
) |
|
(101 |
) |
|
102 |
|
|
20 |
|
|||||||
Corporate expenses(5) |
|
(26 |
) |
|
(28 |
) |
|
(30 |
) |
|
(45 |
) |
|
(129 |
) |
|
(29 |
) |
|
(35 |
) |
|||||||
Provision for depreciation, depletion, and amortization |
|
(182 |
) |
|
(161 |
) |
|
(156 |
) |
|
(165 |
) |
|
(664 |
) |
|
(160 |
) |
|
(161 |
) |
|||||||
Restructuring and other charges, net |
|
(7 |
) |
|
(33 |
) |
|
(33 |
) |
|
(1,055 |
) |
|
(1,128 |
) |
|
(125 |
) |
|
75 |
|
|||||||
Interest expense |
|
(42 |
) |
|
(67 |
) |
|
(58 |
) |
|
(28 |
) |
|
(195 |
) |
|
(25 |
) |
|
(30 |
) |
|||||||
Other income, net |
|
24 |
|
|
105 |
|
|
18 |
|
|
298 |
|
|
445 |
|
|
14 |
|
|
206 |
|
|||||||
Other(6) |
|
(6 |
) |
|
(2 |
) |
|
(10 |
) |
|
(20 |
) |
|
(38 |
) |
|
(13 |
) |
|
(100 |
) |
|||||||
Consolidated income (loss) before income taxes |
|
312 |
|
|
461 |
|
|
497 |
|
|
(71 |
) |
|
1,199 |
|
|
763 |
|
|
908 |
|
|||||||
Provision for income taxes |
|
(93 |
) |
|
(111 |
) |
|
(127 |
) |
|
(298 |
) |
|
(629 |
) |
|
(210 |
) |
|
(234 |
) |
|||||||
Net income attributable to noncontrolling interest |
|
(44 |
) |
|
(41 |
) |
|
(33 |
) |
|
(23 |
) |
|
(141 |
) |
|
(84 |
) |
|
(125 |
) |
|||||||
Consolidated net income (loss) attributable to Alcoa Corporation |
$ |
175 |
|
$ |
309 |
|
$ |
337 |
|
$ |
(392 |
) |
$ |
429 |
|
$ |
469 |
|
$ |
549 |
|
The difference between segment totals and consolidated amounts is in Corporate. | ||
|
||
(1) |
The production amounts can vary from total shipments due primarily to differences between the equity allocation of production and off-take agreements with the respective equity investment. |
|
|
|
|
(2) |
Alcoa Corporation’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. |
|
|
|
|
(3) |
Until the sale of the Warrick Rolling Mill on March 31, 2021, the Aluminum segment’s third-party aluminum shipments were composed of both primary aluminum and flat-rolled aluminum. Beginning April 1, 2021, the segment’s third-party aluminum shipments include only primary aluminum. |
|
|
|
|
(4) |
Transformation includes, among other items, the Adjusted EBITDA of previously closed operations. |
|
|
|
|
(5) |
Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities, as well as research and development expenses of the corporate technical center. |
|
|
|
|
(6) |
Other includes certain items that impact Alcoa Corporation’s Statement of Consolidated Operations that are not included in the Adjusted EBITDA of the reportable segments. |
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited) (in millions, except per-share amounts) |
||||||||||||||||||||||||
Adjusted Income |
Income |
|
Diluted EPS |
|||||||||||||||||||||
|
Quarter ended |
|
Quarter ended |
|||||||||||||||||||||
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|||||||||||||
Net income attributable to Alcoa Corporation |
$ |
549 |
|
$ |
469 |
|
$ |
309 |
|
$ |
2.95 |
$ |
2.49 |
$ |
1.63 |
|||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Special items: |
|
|
|
|
|
|
||||||||||||||||||
Restructuring and other charges, net |
|
(75 |
) |
|
125 |
|
|
33 |
|
|
|
|
||||||||||||
Other special items(1) |
|
(76 |
) |
|
(2 |
) |
|
(65 |
) |
|
|
|
||||||||||||
Discrete tax items (2) |
|
— |
|
|
2 |
|
|
— |
|
|
|
|
||||||||||||
Tax impact on special items(3) |
|
52 |
|
|
(8 |
) |
|
3 |
|
|
|
|
||||||||||||
Noncontrolling interest impact(3) |
|
46 |
|
|
(9 |
) |
|
1 |
|
|
|
|
||||||||||||
Subtotal |
|
(53 |
) |
|
108 |
|
|
(28 |
) |
|
|
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Net income attributable to Alcoa Corporation – as adjusted |
$ |
496 |
|
$ |
577 |
|
$ |
281 |
|
$ |
2.67 |
|
$ |
3.06 |
|
$ |
1.49 |
|
Net income attributable to Alcoa Corporation – as adjusted is a non-GAAP financial measure. Management believes this measure is meaningful to investors because management reviews the operating results of Alcoa Corporation excluding the impacts of restructuring and other charges, various tax items, and other special items (collectively, “special items”). There can be no assurances that additional special items will not occur in future periods. To compensate for this limitation, management believes it is appropriate to consider both Net income attributable to Alcoa Corporation determined under GAAP as well as Net income attributable to Alcoa Corporation – as adjusted. | ||
|
||
(1) |
Other special items include the following: |
|
|
|
|
|
|
|
|
|
|
(2) |
Discrete tax items are generally unusual or infrequently occurring items, changes in law, items associated with uncertain tax positions, or the effect of measurement-period adjustments and include the following: |
|
|
|
|
(3) |
The tax impact on special items is based on the applicable statutory rates in the jurisdictions where the special items occurred. The noncontrolling interest impact on special items represents Alcoa’s partner’s share of certain special items. |
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited), continued (in millions) |
||||||||||||
Adjusted EBITDA |
Quarter ended |
|||||||||||
|
June 30, 2022 |
March 31, 2022 |
June 30, 2021 |
|||||||||
|
|
|
|
|||||||||
Net income attributable to Alcoa Corporation |
$ |
549 |
|
$ |
469 |
|
$ |
309 |
|
|||
|
|
|
|
|||||||||
Add: |
|
|
|
|||||||||
Net income attributable to noncontrolling interest |
|
125 |
|
|
84 |
|
|
41 |
|
|||
Provision for income taxes |
|
234 |
|
|
210 |
|
|
111 |
|
|||
Other income, net |
|
(206 |
) |
|
(14 |
) |
|
(105 |
) |
|||
Interest expense |
|
30 |
|
|
25 |
|
|
67 |
|
|||
Restructuring and other charges, net |
|
(75 |
) |
|
125 |
|
|
33 |
|
|||
Provision for depreciation, depletion, and amortization |
|
161 |
|
|
160 |
|
|
161 |
|
|||
|
|
|
|
|||||||||
Adjusted EBITDA |
|
818 |
|
|
1,059 |
|
|
617 |
|
|||
|
|
|
|
|||||||||
Special items(1) |
|
95 |
|
|
13 |
|
|
1 |
|
|||
|
|
|
|
|||||||||
Adjusted EBITDA, excluding special items |
$ |
913 |
|
$ |
1,072 |
|
$ |
618 |
|
Alcoa’s Corporation’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. Adjusted EBITDA is a non-GAAP financial measure. Management believes this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa Corporation’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. | ||
|
||
(1) |
Special items include the following (see reconciliation of Adjusted Income above for additional information): |
|
|
||
|
||
|
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited), continued (in millions) |
||||||||||||
Free Cash Flow |
Quarter ended |
|||||||||||
|
June 30, 2022 |
March 31, 2022 |
June 30, 2021 |
|||||||||
Cash provided from (used for) operations(1) |
$ |
536 |
|
|
$ |
34 |
|
|
$ |
(86 |
) |
|
|
|
|
|
|
|
|||||||
Capital expenditures |
|
(107 |
) |
|
|
(74 |
) |
|
|
(79 |
) |
|
|
|
|
|
|
|
|||||||
Free cash flow |
$ |
429 |
|
|
$ |
(40 |
) |
|
$ |
(165 |
) |
Free Cash Flow is a non-GAAP financial measure. Management believes this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures, which are both necessary to maintain and expand Alcoa Corporation’s asset base and expected to generate future cash flows from operations. It is important to note that Free Cash Flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure. | ||
|
||
(1) |
Cash provided from (used for) operations for the quarter ended June 30, 2021 includes a $500 cash outflow for unscheduled contributions to certain U.S. defined benefit pension plans. The $500 was funded with the net proceeds of 4.125% senior notes due 2029, together with cash on hand. |
Net Debt |
June 30, 2022 |
December 31, 2021 |
||||||
Short-term borrowings |
$ |
75 |
$ |
75 |
|
|||
Long-term debt due within one year |
|
1 |
|
|
1 |
|
||
Long-term debt, less amount due within one year |
|
1,725 |
|
|
1,726 |
|
||
Total debt |
|
1,801 |
|
|
1,802 |
|
||
|
|
|
||||||
Less: Cash and cash equivalents |
|
1,638 |
|
|
1,814 |
|
||
|
|
|
||||||
Net debt (cash) |
$ |
163 |
|
$ |
(12 |
) |
Net debt is a non-GAAP financial measure. Management believes this measure is meaningful to investors because management assesses Alcoa Corporation’s leverage position after considering available cash that could be used to repay outstanding debt. When cash exceeds total debt, the measure is expressed as net cash. |
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in millions)
|
||||||||||||||||||||||||
|
June 30, 2022 |
December 31, 2021 |
||||||||||||||||||||||
|
Consolidated |
NCI |
Alcoa Proportional |
Consolidated |
NCI |
Alcoa Proportional |
||||||||||||||||||
Short-term borrowings |
$ |
75 |
$ |
30 |
$ |
45 |
$ |
75 |
$ |
30 |
$ |
45 |
||||||||||||
Long-term debt due within one year |
|
1 |
|
|
— |
|
|
1 |
|
|
1 |
|
|
— |
|
|
1 |
|
||||||
Long-term debt, less amount due within one year |
|
1,725 |
|
|
— |
|
|
1,725 |
|
|
1,726 |
|
|
— |
|
|
1,726 |
|
||||||
Total debt |
|
1,801 |
|
|
30 |
|
|
1,771 |
|
|
1,802 |
|
|
30 |
|
|
1,772 |
|
||||||
|
|
|
|
|
|
|
||||||||||||||||||
Less: Cash and cash equivalents |
|
1,638 |
|
|
166 |
|
|
1,472 |
|
|
1,814 |
|
|
177 |
|
|
1,637 |
|
||||||
|
|
|
|
|
|
|
||||||||||||||||||
Net debt (net cash) |
|
163 |
|
|
(136 |
) |
|
299 |
|
|
(12 |
) |
|
(147 |
) |
|
135 |
|
||||||
|
|
|
|
|
|
|
||||||||||||||||||
Plus: Net pension / OPEB liability |
|
893 |
|
|
16 |
|
|
877 |
|
|
973 |
|
|
15 |
|
|
958 |
|
||||||
|
|
|
|
|
|
|
||||||||||||||||||
Adjusted net debt (net cash) |
$ |
1,056 |
|
$ |
(120 |
) |
$ |
1,176 |
|
$ |
961 |
|
$ |
(132 |
) |
$ |
1,093 |
|
Net debt is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management assesses Alcoa Corporation’s leverage position after considering available cash that could be used to repay outstanding debt. When cash exceeds total debt, the measure is expressed as net cash. |
Adjusted net debt and proportional adjusted net debt are also non-GAAP financial measures. Management believes that these additional measures are meaningful to investors because management also assesses Alcoa Corporation’s leverage position after considering available cash that could be used to repay outstanding debt and net pension/OPEB liability, net of the portion of those items attributable to noncontrolling interest (NCI). |
Days Working Capital |
||||||||||||
|
Quarter ended |
|||||||||||
|
June 30, 2022 |
March 31, 2022 |
June 30, 2021 |
|||||||||
Receivables from customers |
$ |
898 |
|
$ |
952 |
|
$ |
644 |
|
|||
|
|
|
|
|||||||||
Add: Inventories |
|
2,556 |
|
|
2,495 |
|
|
1,547 |
|
|||
|
|
|
|
|||||||||
Less: Accounts payable, trade |
|
(1,752 |
) |
|
(1,645 |
) |
|
(1,392 |
) |
|||
|
|
|
|
|||||||||
DWC working capital |
$ |
1,702 |
|
$ |
1,802 |
|
$ |
799 |
|
|||
|
|
|
|
|||||||||
Sales |
$ |
3,644 |
|
$ |
3,293 |
|
$ |
2,833 |
|
|||
|
|
|
|
|||||||||
Number of days in the quarter |
|
91 |
|
|
90 |
|
|
91 |
|
|||
|
|
|
|
|||||||||
Days working capital(1) |
|
43 |
|
|
49 |
|
|
26 |
|
Days working capital is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management uses its working capital position to assess Alcoa Corporation’s efficiency in liquidity management. |
||
(1) |
Days working capital is calculated as DWC working capital divided by the quotient of Sales and number of days in the quarter. |
ПИТТСБУРГ -- (BUSINESS WIRE) --Корпорация Alcoa (NYSE: AA) сегодня сообщила о финансовых результатах за второй квартал 2022 года, которые включали последовательный рост выручки на 11 процентов и сильный денежный поток, позволивший осуществить обратный выкуп акций и выплату дивидендов наличными.
Основные моменты Второго квартала
“У нас была сильная первая половина 2022 года с почти 2 миллиардами долларов скорректированной EBITDA и денежными потоками, которые позволили увеличить выкуп акций в рамках нашей существующей программы обратного выкупа акций, а также продолжить ежеквартальные выплаты дивидендов”, - сказал президент и главный исполнительный директор Alcoa Рой Харви. “В этом году мы вернули нашим инвесторам более 380 миллионов долларов, и сегодня мы объявили о дополнительном разрешении на 500 миллионов долларов для будущих выкупов акций.
“По мере продвижения к оставшейся части этого нестабильного года мы по-прежнему сосредоточены на наших стратегических приоритетах и нашем видении переосмысления алюминиевой промышленности для устойчивого будущего”, - сказал Харви.
Финансовые результаты
M, except per share amounts |
2Q22 |
1Q22 |
2Q21 |
Revenue |
$3,644 |
$3,293 |
$2,833 |
Net income attributable to Alcoa Corporation |
$549 |
$469 |
$309 |
Earnings per share attributable to Alcoa Corporation |
$2.95 |
$2.49 |
$1.63 |
Adjusted net income |
$496 |
$577 |
$281 |
Adjusted earnings per share |
$2.67 |
$3.06 |
$1.49 |
Adjusted EBITDA excluding special items |
$913 |
$1,072 |
$618 |
Результаты второго квартала 2022 года
Стратегические действия:
Компания ожидает, что общий объем поставок алюминиевого сегмента останется неизменным по сравнению с предыдущим прогнозом и составит от 2,5 до 2,6 млн метрических тонн в 2022 году.
В глиноземе Компания снизила прогноз поставок на 2022 год до 13,6-13,8 млн метрических тонн, что на 0,6 млн метрических тонн меньше предыдущего прогноза, в основном из-за снижения поставок в первой половине 2022 года.
Что касается бокситов, то Компания снизила свой прогноз ежегодных поставок бокситов на 2022 год до 44,0-45,0 млн сухих метрических тонн, что на 2 млн сухих метрических тонн меньше предыдущего прогноза из-за продолжающихся сбоев на атлантическом рынке бокситов и снижения спроса со стороны нефтеперерабатывающих заводов в первой половине 2022 года.
В третьем квартале 2022 года Alcoa ожидает последовательного повышения прибыльности в сегменте бокситов с увеличением поставок, поскольку спрос на НПЗ улучшится в третьем квартале. Ожидается, что поставки глинозема и алюминия увеличатся, но не смогут полностью компенсировать более высокие затраты на энергию и сырье.
Компания ожидает, что сокращение линии Warrick окажет негативное влияние на чистую прибыль в третьем квартале примерно на 20 миллионов долларов. Снижение объемов производства на нефтеперерабатывающем заводе в Сан-Чиприане уменьшает влияние продолжающегося роста цен на природный газ, но, как ожидается, не приведет к значительному увеличению чистой прибыли на последовательной основе.
Исходя из текущих условий на рынке глинозема и алюминия, Компания ожидает, что налоговые расходы в третьем квартале составят примерно от 100 до 110 миллионов долларов, что может варьироваться в зависимости от рыночных условий и доходности юрисдикции.
Конференц-связь
Alcoa проведет ежеквартальную телефонную конференцию в 17:00 по восточному поясному времени (EDT) в среду, 20 июля 2022 года, чтобы представить финансовые результаты за второй квартал 2022 года и обсудить бизнес, события и рыночные условия.
Звонок будет транслироваться в Интернете через домашнюю страницу Компании на сайте www.Alcoa.com . Презентационные материалы для конкурса будут доступны для просмотра на том же веб-сайте примерно в 16:15 вечера по восточному времени 20 июля 2022 года. Информация о звонках и связанные с ними подробности доступны в разделе “Инвесторы” на сайте www.Alcoa.com .
О корпорации Alcoa
Alcoa (NYSE: AA) - мировой лидер в области производства бокситов, глинозема и алюминиевой продукции с целью переосмысления алюминиевой промышленности для устойчивого будущего. Наша цель - превратить необработанный потенциал в реальный прогресс, опираясь на ценности Alcoa, которые включают честность, высокое качество работы, заботу о людях и смелое лидерство. С момента разработки процесса, который сделал алюминий доступной и жизненно важной частью современной жизни, наши талантливые алкоанцы разработали прорывные инновации и лучшие практики, которые привели к повышению безопасности, устойчивости, эффективности и укреплению сообществ, где бы мы ни работали.
Узнайте больше, посетив сайт www.Alcoa.com . Следите за нами на наших каналах в социальных сетях: Facebook, Instagram, Twitter, YouTube и LinkedIn.
Компания не включает в настоящий пресс-релиз информацию, содержащуюся на таких веб-сайтах или доступную через них.
Распространение информации о компании
Alcoa намеревается в будущем делать объявления о развитии компании и финансовых показателях через свой веб-сайт, www.Alcoa.com , а также посредством пресс-релизов, подачи заявок в Комиссию по ценным бумагам и биржам, телефонных конференций и веб-трансляций.
Прогнозные заявления
Этот пресс-релиз содержит заявления, которые касаются будущих событий и ожиданий и, как таковые, представляют собой прогнозные заявления по смыслу Закона о реформе судебных разбирательств по частным ценным бумагам 1995 года. Прогнозные заявления включают заявления, содержащие такие слова, как “цели”, “амбиции”, “ожидает”, “полагает”, “может”, “развивать”, “стремится”, “оценивает”, “ожидает”, “прогнозы”, “цель”, “намеревается”, “может, ”перспективы”, “потенциал”, “планы”, “проекты”, “достичь”, “стремится”, “видит”, “должен”, “стремиться”, “цели”, “будет”, “работает”, “хотел бы” или другие слова с аналогичным значением. Все заявления Alcoa Corporation, которые отражают ожидания, предположения или прогнозы относительно будущего, кроме заявлений об исторических фактах, являются прогнозными заявлениями, включая, помимо прочего, прогнозы относительно роста мирового спроса на бокситы, глинозем и алюминий, а также балансы спроса и предложения; заявления, прогнозы или прогнозы будущего или целевые финансовые результаты, или операционные показатели или показатели устойчивого развития (включая нашу способность выполнять стратегии, связанные с экологическими, социальными и управленческими вопросами); заявления о стратегиях, перспективах, деловых и финансовых перспективах; и заявления о распределении капитала и возврате капитала. Эти заявления отражают убеждения и предположения, основанные на восприятии Корпорацией Alcoa исторических тенденций, текущих условий и ожидаемых будущих событий, а также других факторов, которые руководство считает уместными в данных обстоятельствах. Прогнозные заявления не являются гарантией будущих результатов и подвержены известным и неизвестным рискам, неопределенностям и изменениям обстоятельств, которые трудно предсказать. Хотя Корпорация Alcoa считает, что ожидания, отраженные в любых прогнозных заявлениях, основаны на разумных предположениях, она не может дать никаких гарантий того, что эти ожидания будут достигнуты, и возможно, что фактические результаты могут существенно отличаться от тех, которые указаны в этих прогнозных заявлениях из-за различных рисков и неопределенностей. Такие риски и неопределенности включают, но не ограничиваются ими: (а) текущие и потенциальные будущие последствия для мировой экономики и нашей промышленности, бизнеса и финансового состояния, вызванные различными мировыми или макроэкономическими событиями, такими как пандемия COVID-19 и продолжающийся конфликт между Россией и Украиной, а также связанные с этим изменения в регулировании; (b) существенные неблагоприятные изменения в условиях алюминиевой промышленности, включая глобальные условия спроса и предложения и колебания цен и премий на Лондонской бирже металлов, в зависимости от обстоятельств, на первичный алюминий и другие продукты, а также колебания индексированных и спотовых цен на глинозем; (c) изменения в глобальной экономической и условия финансового рынка в целом, такие как инфляция и повышение процентных ставок, и которые также могут повлиять на способность Alcoa Corporation получать кредиты или финансирование на приемлемых условиях или вообще; (d) неблагоприятные изменения на рынках, обслуживаемых Alcoa Corporation; (e) влияние изменений в обмене иностранной валюты и налогообложении ставки по затратам и результатам; (Ф) увеличение энергии или затрат на сырье, или неопределенность или сбоев в энергии или поставки сырья, и в цепочке поставок, в том числе организация; (г) невозможность выполнения стратегии, связанные с или добиться повышения прибыльности и рентабельности, снижение затрат, денежных потоков, доходов рост, финансовая дисциплина, экологических и социальных целей и задач (в том числе из-за задержек в научно-технические разработки), и укрепление конкурентоспособности и операций, ожидаемых от портфеля действия, оперативно и производительность, технологий и других инициатив; (з) невозможность реализовать ожидаемые выгоды, в каждом конкретном случае так, как планировалось и целевых сроков выполнения, от поглощений, продажи активов, реструктуризации деятельности, механизм закрытия, свертывания, перезагружается, расширения, или совместных предприятиях; (я) политической, экономической, торговой, правовой, общественной безопасности и здоровья населения, и регуляторные риски в тех странах, в которых Alcoa Corporation работает или осуществляет продажи; (к) трудовые споры и/или перерывы в работе и ударов; (к) исход непредвиденных расходов, в том числе правовые и налоговые дела, государственных или регулирующих расследований и восстановления окружающей среды; (д) влияние кибератак и потенциал информационных технологий или обеспечения безопасности данных нарушений; (м) риски, связанные с долгосрочным долговым обязательствам; (н) в сроки и сумму будущих денежных дивидендов и обратного выкупа акций; (о) снижение ставки дисконтирования, используемый для оценки пенсионных и прочих обязательств с установленными выплатами или ниже, чем ожидалось, инвестиционной доходности пенсионных активов, или неблагоприятными изменениями в законодательстве или нормативных правовых актах, регламентирующих пенсионного плана финансирования; и, (п) другие факторы риска, рассмотренные в части I пункт 1А Alcoa корпорации годовой отчет по форме 10-K за финансовый год, закончившийся 31 декабря 2021 года, ежеквартальный отчет по форме 10-Q за квартал, закончившийся 31 марта 2022 года, а остальные отчеты, поданные Alcoa Corporation с США по ценным бумагам и биржам. Корпорация Alcoa отказывается от каких-либо обязательств по публичному обновлению любых прогнозных заявлений, будь то в ответ на новую информацию, будущие события или иным образом, за исключением случаев, предусмотренных применимым законодательством. Рыночные прогнозы подвержены рискам, описанным выше, и другим рискам на рынке.
Финансовые показатели, не относящиеся к ОПБУ
Некоторая информация, включенная в этот выпуск, взята из консолидированной финансовой информации Alcoa Corporation, но не представлена в финансовой отчетности Alcoa Corporation, подготовленной в соответствии с принципами бухгалтерского учета, общепринятыми в Соединенных Штатах Америки (GAAP). Некоторые из этих данных считаются “финансовыми показателями, не относящимися к GAAP” в соответствии с правилами SEC. Корпорация Alcoa считает, что представление финансовых показателей, не относящихся к GAAP, полезно для инвесторов, поскольку такие показатели предоставляют как дополнительную информацию об операционных показателях корпорации Alcoa, так и представление о способности корпорации Alcoa выполнять свои финансовые обязательства путем корректировки наиболее непосредственно сопоставимого финансового показателя GAAP с учетом влияния, среди прочего, “специальные статьи”, как определено Компанией, неденежные статьи по своему характеру и/или неработающие статьи расходов или доходов. Представление финансовых показателей, не относящихся к ОПБУ, не предназначено для замены финансовых показателей, представленных в соответствии с ОПБУ, и не должно рассматриваться в отрыве от них. Сверки с наиболее непосредственно сопоставимыми финансовыми показателями GAAP и обоснование руководством использования финансовых показателей, не относящихся к GAAP, можно найти в приложениях к этому выпуску.
Alcoa Corporation and subsidiaries
Statement of Consolidated Operations (unaudited) (dollars in millions, except per-share amounts) |
||||||||||||
|
Quarter Ended |
|||||||||||
|
June 30, 2022 |
March 31, 2022 |
June 30, 2021 |
|||||||||
Sales |
$ |
3,644 |
|
$ |
3,293 |
|
$ |
2,833 |
|
|||
|
|
|
|
|||||||||
Cost of goods sold (exclusive of expenses below) |
|
2,767 |
|
|
2,181 |
|
|
2,156 |
|
|||
Selling, general administrative, and other expenses |
|
52 |
|
|
44 |
|
|
54 |
|
|||
Research and development expenses |
|
7 |
|
|
9 |
|
|
6 |
|
|||
Provision for depreciation, depletion, and amortization |
|
161 |
|
|
160 |
|
|
161 |
|
|||
Restructuring and other charges, net |
|
(75 |
) |
|
125 |
|
|
33 |
|
|||
Interest expense |
|
30 |
|
|
25 |
|
|
67 |
|
|||
Other income, net |
|
(206 |
) |
|
(14 |
) |
|
(105 |
) |
|||
Total costs and expenses |
|
2,736 |
|
|
2,530 |
|
|
2,372 |
|
|||
|
|
|
|
|||||||||
Income before income taxes |
|
908 |
|
|
763 |
|
|
461 |
|
|||
Provision for income taxes |
|
234 |
|
|
210 |
|
|
111 |
|
|||
|
|
|
|
|||||||||
Net income |
|
674 |
|
|
553 |
|
|
350 |
|
|||
|
|
|
|
|||||||||
Less: Net income attributable to noncontrolling interest |
|
125 |
|
|
84 |
|
|
41 |
|
|||
|
|
|
|
|||||||||
NET INCOME ATTRIBUTABLE TO Alcoa CORPORATION |
$ |
549 |
|
$ |
469 |
|
$ |
309 |
|
|||
|
|
|
|
|||||||||
EARNINGS PER SHARE ATTRIBUTABLE TO Alcoa CORPORATION COMMON SHAREHOLDERS: |
|
|
|
|||||||||
Basic: |
|
|
|
|||||||||
Net income |
$ |
3.01 |
|
$ |
2.54 |
|
$ |
1.66 |
|
|||
Average number of shares |
|
182,499,574 |
|
|
184,550,123 |
|
|
186,705,311 |
|
|||
|
|
|
|
|||||||||
Diluted: |
|
|
|
|||||||||
Net income |
$ |
2.95 |
|
$ |
2.49 |
|
$ |
1.63 |
|
|||
Average number of shares |
|
186,068,663 |
|
|
188,536,773 |
|
|
190,195,453 |
|
Alcoa Corporation and subsidiaries
Statement of Consolidated Operations (unaudited) (dollars in millions, except per-share amounts) |
||||||||
|
Six Months Ended |
|||||||
|
June 30, 2022 |
June 30, 2021 |
||||||
Sales |
$ |
6,937 |
|
$ |
5,703 |
|
||
|
|
|
||||||
Cost of goods sold (exclusive of expenses below) |
|
4,948 |
|
|
4,448 |
|
||
Selling, general administrative, and other expenses |
|
96 |
|
|
106 |
|
||
Research and development expenses |
|
16 |
|
|
13 |
|
||
Provision for depreciation, depletion, and amortization |
|
321 |
|
|
343 |
|
||
Restructuring and other charges, net |
|
50 |
|
|
40 |
|
||
Interest expense |
|
55 |
|
|
109 |
|
||
Other income, net |
|
(220 |
) |
|
(129 |
) |
||
Total costs and expenses |
|
5,266 |
|
|
4,930 |
|
||
|
|
|
||||||
Income before income taxes |
|
1,671 |
|
|
773 |
|
||
Provision for income taxes |
|
444 |
|
|
204 |
|
||
|
|
|
||||||
Net income |
|
1,227 |
|
|
569 |
|
||
|
|
|
||||||
Less: Net income attributable to noncontrolling interest |
|
209 |
|
|
85 |
|
||
|
|
|
||||||
NET INCOME ATTRIBUTABLE TO Alcoa CORPORATION |
$ |
1,018 |
|
$ |
484 |
|
||
|
|
|
||||||
EARNINGS PER SHARE ATTRIBUTABLE TO Alcoa CORPORATION COMMON SHAREHOLDERS: |
|
|
||||||
Basic: |
|
|
||||||
Net income |
$ |
5.55 |
|
$ |
2.60 |
|
||
Average number of shares |
|
183,489,221 |
|
|
186,473,781 |
|
||
|
|
|
||||||
Diluted: |
|
|
||||||
Net income |
$ |
5.44 |
|
$ |
2.56 |
|
||
Average number of shares |
|
187,282,228 |
|
|
189,497,440 |
|
||
|
|
|
||||||
Common stock outstanding at the end of the period |
|
179,921,896 |
|
|
186,855,060 |
|
Alcoa Corporation and subsidiaries
Consolidated Balance Sheet (unaudited) (in millions) |
||||||||
|
June 30, 2022 |
December 31, 2021 |
||||||
ASSETS |
|
|
||||||
Current assets: |
|
|
||||||
Cash and cash equivalents |
$ |
1,638 |
|
$ |
1,814 |
|
||
Receivables from customers |
|
898 |
|
|
757 |
|
||
Other receivables |
|
124 |
|
|
127 |
|
||
Inventories |
|
2,556 |
|
|
1,956 |
|
||
Fair value of derivative instruments |
|
224 |
|
|
14 |
|
||
Prepaid expenses and other current assets(1) |
|
423 |
|
|
358 |
|
||
Total current assets |
|
5,863 |
|
|
5,026 |
|
||
Properties, plants, and equipment |
|
19,647 |
|
|
19,753 |
|
||
Less: accumulated depreciation, depletion, and amortization |
|
13,190 |
|
|
13,130 |
|
||
Properties, plants, and equipment, net |
|
6,457 |
|
|
6,623 |
|
||
Investments |
|
1,238 |
|
|
1,199 |
|
||
Deferred income taxes |
|
445 |
|
|
506 |
|
||
Fair value of derivative instruments |
|
15 |
|
|
7 |
|
||
Other noncurrent assets(2) |
|
1,691 |
|
|
1,664 |
|
||
Total assets |
$ |
15,709 |
|
$ |
15,025 |
|
||
LIABILITIES |
|
|
||||||
Current liabilities: |
|
|
||||||
Accounts payable, trade |
$ |
1,752 |
|
$ |
1,674 |
|
||
Accrued compensation and retirement costs |
|
341 |
|
|
383 |
|
||
Taxes, including income taxes |
|
343 |
|
|
374 |
|
||
Fair value of derivative instruments |
|
232 |
|
|
274 |
|
||
Other current liabilities |
|
567 |
|
|
517 |
|
||
Long-term debt due within one year |
|
1 |
|
|
1 |
|
||
Total current liabilities |
|
3,236 |
|
|
3,223 |
|
||
Long-term debt, less amount due within one year |
|
1,725 |
|
|
1,726 |
|
||
Accrued pension benefits |
|
369 |
|
|
417 |
|
||
Accrued other postretirement benefits |
|
626 |
|
|
650 |
|
||
Asset retirement obligations |
|
634 |
|
|
622 |
|
||
Environmental remediation |
|
254 |
|
|
265 |
|
||
Fair value of derivative instruments |
|
867 |
|
|
1,048 |
|
||
Noncurrent income taxes |
|
204 |
|
|
191 |
|
||
Other noncurrent liabilities and deferred credits |
|
502 |
|
|
599 |
|
||
Total liabilities |
|
8,417 |
|
|
8,741 |
|
||
EQUITY |
|
|
||||||
Alcoa Corporation shareholders’ equity: |
|
|
||||||
Common stock |
|
2 |
|
|
2 |
|
||
Additional capital |
|
9,313 |
|
|
9,577 |
|
||
Retained earnings (deficit) |
|
606 |
|
|
(315 |
) |
||
Accumulated other comprehensive loss |
|
(4,255 |
) |
|
(4,592 |
) |
||
Total Alcoa Corporation shareholders’ equity |
|
5,666 |
|
|
4,672 |
|
||
Noncontrolling interest |
|
1,626 |
|
|
1,612 |
|
||
Total equity |
|
7,292 |
|
|
6,284 |
|
||
Total liabilities and equity |
$ |
15,709 |
|
$ |
15,025 |
|
(1) |
This line item includes $42 and $4 of restricted cash at June 30, 2022 and December 31, 2021, respectively. |
|
(2) |
This line item includes $68 and $106 of noncurrent restricted cash at June 30, 2022 and December 31, 2021, respectively. |
Alcoa Corporation and subsidiaries
Statement of Consolidated Cash Flows (unaudited) (in millions) |
||||||||
|
Six Months Ended June 30, |
|||||||
|
2022 |
|
2021 |
|||||
CASH FROM OPERATIONS |
|
|
||||||
Net income |
$ |
1,227 |
|
$ |
569 |
|
||
Adjustments to reconcile net income to cash from operations: |
|
|
||||||
Depreciation, depletion, and amortization |
|
321 |
|
|
343 |
|
||
Deferred income taxes |
|
93 |
|
|
48 |
|
||
Equity earnings, net of dividends |
|
(61 |
) |
|
(46 |
) |
||
Restructuring and other charges, net |
|
50 |
|
|
40 |
|
||
Net loss (gain) from investing activities – asset sales |
|
5 |
|
|
(124 |
) |
||
Net periodic pension benefit cost |
|
28 |
|
|
24 |
|
||
Stock-based compensation |
|
20 |
|
|
18 |
|
||
Provision for bad debt expense |
|
— |
|
|
1 |
|
||
Premium paid on early redemption of debt |
|
— |
|
|
25 |
|
||
Gain on mark-to-market derivative financial contracts |
|
(123 |
) |
|
(5 |
) |
||
Other |
|
28 |
|
|
33 |
|
||
Changes in assets and liabilities, excluding effects of divestitures and foreign currency translation adjustments: |
|
|
||||||
Increase in receivables |
|
(119 |
) |
|
(270 |
) |
||
Increase in inventories |
|
(657 |
) |
|
(184 |
) |
||
Decrease in prepaid expenses and other current assets |
|
15 |
|
|
58 |
|
||
Increase in accounts payable, trade |
|
98 |
|
|
32 |
|
||
Decrease in accrued expenses |
|
(103 |
) |
|
(20 |
) |
||
(Decrease) Increase in taxes, including income taxes |
|
(79 |
) |
|
40 |
|
||
Pension contributions |
|
(9 |
) |
|
(570 |
) |
||
Increase in noncurrent assets |
|
(105 |
) |
|
(34 |
) |
||
Decrease in noncurrent liabilities |
|
(59 |
) |
|
(58 |
) |
||
CASH PROVIDED FROM (USED FOR) OPERATIONS |
|
570 |
|
|
(80 |
) |
||
|
|
|
||||||
FINANCING ACTIVITIES |
|
|
||||||
Additions to debt (original maturities greater than three months) |
|
— |
|
|
495 |
|
||
Payments on debt (original maturities greater than three months) |
|
— |
|
|
(776 |
) |
||
Proceeds from the exercise of employee stock options |
|
22 |
|
|
14 |
|
||
Repurchase of common stock |
|
(350 |
) |
|
— |
|
||
Dividends paid on Alcoa common stock |
|
(37 |
) |
|
— |
|
||
Payments related to tax withholding on stock-based compensation awards |
|
(19 |
) |
|
(1 |
) |
||
Financial contributions for the divestiture of businesses |
|
(9 |
) |
|
(13 |
) |
||
Contributions from noncontrolling interest |
|
83 |
|
|
— |
|
||
Distributions to noncontrolling interest |
|
(245 |
) |
|
(137 |
) |
||
Other |
|
(3 |
) |
|
(3 |
) |
||
CASH USED FOR FINANCING ACTIVITIES |
|
(558 |
) |
|
(421 |
) |
||
|
|
|
||||||
INVESTING ACTIVITIES |
|
|
||||||
Capital expenditures |
|
(181 |
) |
|
(154 |
) |
||
Proceeds from the sale of assets |
|
4 |
|
|
705 |
|
||
Additions to investments |
|
(21 |
) |
|
(3 |
) |
||
Sale of investments |
|
10 |
|
|
— |
|
||
Other |
|
2 |
|
|
— |
|
||
CASH (USED FOR) PROVIDED FROM INVESTING ACTIVITIES |
|
(186 |
) |
|
548 |
|
||
|
|
|
||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH |
|
(2 |
) |
|
(2 |
) |
||
Net change in cash and cash equivalents and restricted cash |
|
(176 |
) |
|
45 |
|
||
Cash and cash equivalents and restricted cash at beginning of year |
|
1,924 |
|
|
1,610 |
|
||
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD |
$ |
1,748 |
|
$ |
1,655 |
|
Alcoa Corporation and subsidiaries
Segment Information (unaudited) (dollars in millions, except realized prices; dry metric tons in millions (mdmt); metric tons in thousands (kmt)) |
||||||||||||||||||||||||||||
|
1Q21 |
|
2Q21 |
|
3Q21 |
|
4Q21 |
|
2021 |
|
1Q22 |
|
2Q22 |
|||||||||||||||
Bauxite: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Production(1) (mdmt) |
|
11.9 |
|
|
12.2 |
|
|
11.7 |
|
|
11.8 |
|
|
47.6 |
|
|
11.0 |
|
|
10.2 |
|
|||||||
Third-party shipments (mdmt) |
|
1.5 |
|
|
1.1 |
|
|
1.5 |
|
|
1.6 |
|
|
5.7 |
|
|
0.8 |
|
|
0.6 |
|
|||||||
Intersegment shipments (mdmt) |
|
10.5 |
|
|
10.8 |
|
|
10.5 |
|
|
10.6 |
|
|
42.4 |
|
|
10.1 |
|
|
10.0 |
|
|||||||
Third-party sales |
$ |
58 |
|
$ |
39 |
|
$ |
56 |
|
$ |
83 |
|
$ |
236 |
|
$ |
43 |
|
$ |
34 |
|
|||||||
Intersegment sales |
$ |
185 |
|
$ |
179 |
|
$ |
172 |
|
$ |
175 |
|
$ |
711 |
|
$ |
170 |
|
$ |
165 |
|
|||||||
Segment Adjusted EBITDA(2) |
$ |
59 |
|
$ |
41 |
|
$ |
23 |
|
$ |
49 |
|
$ |
172 |
|
$ |
38 |
|
$ |
5 |
|
|||||||
Depreciation, depletion, and amortization |
$ |
57 |
|
$ |
32 |
|
$ |
30 |
|
$ |
34 |
|
$ |
153 |
|
$ |
35 |
|
$ |
35 |
|
|||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Alumina: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Production (kmt) |
|
3,327 |
|
|
3,388 |
|
|
3,253 |
|
|
3,291 |
|
|
13,259 |
|
|
3,209 |
|
|
3,226 |
|
|||||||
Third-party shipments (kmt) |
|
2,472 |
|
|
2,437 |
|
|
2,426 |
|
|
2,294 |
|
|
9,629 |
|
|
2,277 |
|
|
2,438 |
|
|||||||
Intersegment shipments (kmt) |
|
1,101 |
|
|
1,054 |
|
|
1,011 |
|
|
1,121 |
|
|
4,287 |
|
|
940 |
|
|
984 |
|
|||||||
Average realized third-party price per metric ton of alumina |
$ |
308 |
|
$ |
282 |
|
$ |
312 |
|
$ |
407 |
|
$ |
326 |
|
$ |
375 |
|
$ |
442 |
|
|||||||
Third-party sales |
$ |
760 |
|
$ |
688 |
|
$ |
756 |
|
$ |
935 |
|
$ |
3,139 |
|
$ |
855 |
|
$ |
1,077 |
|
|||||||
Intersegment sales |
$ |
364 |
|
$ |
343 |
|
$ |
349 |
|
$ |
530 |
|
$ |
1,586 |
|
$ |
418 |
|
$ |
489 |
|
|||||||
Segment Adjusted EBITDA(2) |
$ |
227 |
|
$ |
124 |
|
$ |
148 |
|
$ |
503 |
|
$ |
1,002 |
|
$ |
262 |
|
$ |
343 |
|
|||||||
Depreciation and amortization |
$ |
46 |
|
$ |
50 |
|
$ |
47 |
|
$ |
55 |
|
$ |
198 |
|
$ |
50 |
|
$ |
49 |
|
|||||||
Equity (loss) income |
$ |
(5 |
) |
$ |
(1 |
) |
$ |
(1 |
) |
$ |
11 |
|
$ |
4 |
|
$ |
1 |
|
$ |
(5 |
) |
|||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Aluminum: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Primary aluminum production (kmt) |
|
548 |
|
|
546 |
|
|
545 |
|
|
554 |
|
|
2,193 |
|
|
498 |
|
|
499 |
|
|||||||
Third-party aluminum shipments(3) (kmt) |
|
831 |
|
|
767 |
|
|
722 |
|
|
687 |
|
|
3,007 |
|
|
634 |
|
|
674 |
|
|||||||
Average realized third-party price per metric ton of primary aluminum |
$ |
2,308 |
|
$ |
2,753 |
|
$ |
3,124 |
|
$ |
3,382 |
|
$ |
2,879 |
|
$ |
3,861 |
|
$ |
3,864 |
|
|||||||
Third-party sales |
$ |
2,047 |
|
$ |
2,102 |
|
$ |
2,295 |
|
$ |
2,322 |
|
$ |
8,766 |
|
$ |
2,388 |
|
$ |
2,539 |
|
|||||||
Intersegment sales |
$ |
2 |
|
$ |
3 |
|
$ |
8 |
|
$ |
5 |
|
$ |
18 |
|
$ |
7 |
|
$ |
8 |
|
|||||||
Segment Adjusted EBITDA(2) |
$ |
283 |
|
$ |
460 |
|
$ |
613 |
|
$ |
523 |
|
$ |
1,879 |
|
$ |
713 |
|
$ |
596 |
|
|||||||
Depreciation and amortization |
$ |
73 |
|
$ |
73 |
|
$ |
72 |
|
$ |
71 |
|
$ |
289 |
|
$ |
69 |
|
$ |
71 |
|
|||||||
Equity income |
$ |
13 |
|
$ |
28 |
|
$ |
38 |
|
$ |
37 |
|
$ |
116 |
|
$ |
39 |
|
$ |
40 |
|
|||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Reconciliation of total segment Adjusted EBITDA to consolidated net income (loss) attributable to Alcoa Corporation: |
||||||||||||||||||||||||||||
Total Segment Adjusted EBITDA(2) |
$ |
569 |
|
$ |
625 |
|
$ |
784 |
|
$ |
1,075 |
|
$ |
3,053 |
|
$ |
1,013 |
|
$ |
944 |
|
|||||||
Unallocated amounts: |
|
|
|
|
|
|
|
|||||||||||||||||||||
Transformation(4) |
|
(11 |
) |
|
(13 |
) |
|
(10 |
) |
|
(10 |
) |
|
(44 |
) |
|
(14 |
) |
|
(11 |
) |
|||||||
Intersegment eliminations |
|
(7 |
) |
|
35 |
|
|
(8 |
) |
|
(121 |
) |
|
(101 |
) |
|
102 |
|
|
20 |
|
|||||||
Corporate expenses(5) |
|
(26 |
) |
|
(28 |
) |
|
(30 |
) |
|
(45 |
) |
|
(129 |
) |
|
(29 |
) |
|
(35 |
) |
|||||||
Provision for depreciation, depletion, and amortization |
|
(182 |
) |
|
(161 |
) |
|
(156 |
) |
|
(165 |
) |
|
(664 |
) |
|
(160 |
) |
|
(161 |
) |
|||||||
Restructuring and other charges, net |
|
(7 |
) |
|
(33 |
) |
|
(33 |
) |
|
(1,055 |
) |
|
(1,128 |
) |
|
(125 |
) |
|
75 |
|
|||||||
Interest expense |
|
(42 |
) |
|
(67 |
) |
|
(58 |
) |
|
(28 |
) |
|
(195 |
) |
|
(25 |
) |
|
(30 |
) |
|||||||
Other income, net |
|
24 |
|
|
105 |
|
|
18 |
|
|
298 |
|
|
445 |
|
|
14 |
|
|
206 |
|
|||||||
Other(6) |
|
(6 |
) |
|
(2 |
) |
|
(10 |
) |
|
(20 |
) |
|
(38 |
) |
|
(13 |
) |
|
(100 |
) |
|||||||
Consolidated income (loss) before income taxes |
|
312 |
|
|
461 |
|
|
497 |
|
|
(71 |
) |
|
1,199 |
|
|
763 |
|
|
908 |
|
|||||||
Provision for income taxes |
|
(93 |
) |
|
(111 |
) |
|
(127 |
) |
|
(298 |
) |
|
(629 |
) |
|
(210 |
) |
|
(234 |
) |
|||||||
Net income attributable to noncontrolling interest |
|
(44 |
) |
|
(41 |
) |
|
(33 |
) |
|
(23 |
) |
|
(141 |
) |
|
(84 |
) |
|
(125 |
) |
|||||||
Consolidated net income (loss) attributable to Alcoa Corporation |
$ |
175 |
|
$ |
309 |
|
$ |
337 |
|
$ |
(392 |
) |
$ |
429 |
|
$ |
469 |
|
$ |
549 |
|
The difference between segment totals and consolidated amounts is in Corporate. | ||
|
||
(1) |
The production amounts can vary from total shipments due primarily to differences between the equity allocation of production and off-take agreements with the respective equity investment. |
|
|
|
|
(2) |
Alcoa Corporation’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. |
|
|
|
|
(3) |
Until the sale of the Warrick Rolling Mill on March 31, 2021, the Aluminum segment’s third-party aluminum shipments were composed of both primary aluminum and flat-rolled aluminum. Beginning April 1, 2021, the segment’s third-party aluminum shipments include only primary aluminum. |
|
|
|
|
(4) |
Transformation includes, among other items, the Adjusted EBITDA of previously closed operations. |
|
|
|
|
(5) |
Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities, as well as research and development expenses of the corporate technical center. |
|
|
|
|
(6) |
Other includes certain items that impact Alcoa Corporation’s Statement of Consolidated Operations that are not included in the Adjusted EBITDA of the reportable segments. |
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited) (in millions, except per-share amounts) |
||||||||||||||||||||||||
Adjusted Income |
Income |
|
Diluted EPS |
|||||||||||||||||||||
|
Quarter ended |
|
Quarter ended |
|||||||||||||||||||||
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|||||||||||||
Net income attributable to Alcoa Corporation |
$ |
549 |
|
$ |
469 |
|
$ |
309 |
|
$ |
2.95 |
$ |
2.49 |
$ |
1.63 |
|||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Special items: |
|
|
|
|
|
|
||||||||||||||||||
Restructuring and other charges, net |
|
(75 |
) |
|
125 |
|
|
33 |
|
|
|
|
||||||||||||
Other special items(1) |
|
(76 |
) |
|
(2 |
) |
|
(65 |
) |
|
|
|
||||||||||||
Discrete tax items (2) |
|
— |
|
|
2 |
|
|
— |
|
|
|
|
||||||||||||
Tax impact on special items(3) |
|
52 |
|
|
(8 |
) |
|
3 |
|
|
|
|
||||||||||||
Noncontrolling interest impact(3) |
|
46 |
|
|
(9 |
) |
|
1 |
|
|
|
|
||||||||||||
Subtotal |
|
(53 |
) |
|
108 |
|
|
(28 |
) |
|
|
|
||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Net income attributable to Alcoa Corporation – as adjusted |
$ |
496 |
|
$ |
577 |
|
$ |
281 |
|
$ |
2.67 |
|
$ |
3.06 |
|
$ |
1.49 |
|
Net income attributable to Alcoa Corporation – as adjusted is a non-GAAP financial measure. Management believes this measure is meaningful to investors because management reviews the operating results of Alcoa Corporation excluding the impacts of restructuring and other charges, various tax items, and other special items (collectively, “special items”). There can be no assurances that additional special items will not occur in future periods. To compensate for this limitation, management believes it is appropriate to consider both Net income attributable to Alcoa Corporation determined under GAAP as well as Net income attributable to Alcoa Corporation – as adjusted. | ||
|
||
(1) |
Other special items include the following: |
|
|
|
|
|
|
|
|
|
|
(2) |
Discrete tax items are generally unusual or infrequently occurring items, changes in law, items associated with uncertain tax positions, or the effect of measurement-period adjustments and include the following: |
|
|
|
|
(3) |
The tax impact on special items is based on the applicable statutory rates in the jurisdictions where the special items occurred. The noncontrolling interest impact on special items represents Alcoa’s partner’s share of certain special items. |
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited), continued (in millions) |
||||||||||||
Adjusted EBITDA |
Quarter ended |
|||||||||||
|
June 30, 2022 |
March 31, 2022 |
June 30, 2021 |
|||||||||
|
|
|
|
|||||||||
Net income attributable to Alcoa Corporation |
$ |
549 |
|
$ |
469 |
|
$ |
309 |
|
|||
|
|
|
|
|||||||||
Add: |
|
|
|
|||||||||
Net income attributable to noncontrolling interest |
|
125 |
|
|
84 |
|
|
41 |
|
|||
Provision for income taxes |
|
234 |
|
|
210 |
|
|
111 |
|
|||
Other income, net |
|
(206 |
) |
|
(14 |
) |
|
(105 |
) |
|||
Interest expense |
|
30 |
|
|
25 |
|
|
67 |
|
|||
Restructuring and other charges, net |
|
(75 |
) |
|
125 |
|
|
33 |
|
|||
Provision for depreciation, depletion, and amortization |
|
161 |
|
|
160 |
|
|
161 |
|
|||
|
|
|
|
|||||||||
Adjusted EBITDA |
|
818 |
|
|
1,059 |
|
|
617 |
|
|||
|
|
|
|
|||||||||
Special items(1) |
|
95 |
|
|
13 |
|
|
1 |
|
|||
|
|
|
|
|||||||||
Adjusted EBITDA, excluding special items |
$ |
913 |
|
$ |
1,072 |
|
$ |
618 |
|
Alcoa’s Corporation’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. Adjusted EBITDA is a non-GAAP financial measure. Management believes this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa Corporation’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. | ||
|
||
(1) |
Special items include the following (see reconciliation of Adjusted Income above for additional information): |
|
|
||
|
||
|
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited), continued (in millions) |
||||||||||||
Free Cash Flow |
Quarter ended |
|||||||||||
|
June 30, 2022 |
March 31, 2022 |
June 30, 2021 |
|||||||||
Cash provided from (used for) operations(1) |
$ |
536 |
|
|
$ |
34 |
|
|
$ |
(86 |
) |
|
|
|
|
|
|
|
|||||||
Capital expenditures |
|
(107 |
) |
|
|
(74 |
) |
|
|
(79 |
) |
|
|
|
|
|
|
|
|||||||
Free cash flow |
$ |
429 |
|
|
$ |
(40 |
) |
|
$ |
(165 |
) |
Free Cash Flow is a non-GAAP financial measure. Management believes this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures, which are both necessary to maintain and expand Alcoa Corporation’s asset base and expected to generate future cash flows from operations. It is important to note that Free Cash Flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure. | ||
|
||
(1) |
Cash provided from (used for) operations for the quarter ended June 30, 2021 includes a $500 cash outflow for unscheduled contributions to certain U.S. defined benefit pension plans. The $500 was funded with the net proceeds of 4.125% senior notes due 2029, together with cash on hand. |
Net Debt |
June 30, 2022 |
December 31, 2021 |
||||||
Short-term borrowings |
$ |
75 |
$ |
75 |
|
|||
Long-term debt due within one year |
|
1 |
|
|
1 |
|
||
Long-term debt, less amount due within one year |
|
1,725 |
|
|
1,726 |
|
||
Total debt |
|
1,801 |
|
|
1,802 |
|
||
|
|
|
||||||
Less: Cash and cash equivalents |
|
1,638 |
|
|
1,814 |
|
||
|
|
|
||||||
Net debt (cash) |
$ |
163 |
|
$ |
(12 |
) |
Net debt is a non-GAAP financial measure. Management believes this measure is meaningful to investors because management assesses Alcoa Corporation’s leverage position after considering available cash that could be used to repay outstanding debt. When cash exceeds total debt, the measure is expressed as net cash. |
Alcoa Corporation and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in millions)
|
||||||||||||||||||||||||
|
June 30, 2022 |
December 31, 2021 |
||||||||||||||||||||||
|
Consolidated |
NCI |
Alcoa Proportional |
Consolidated |
NCI |
Alcoa Proportional |
||||||||||||||||||
Short-term borrowings |
$ |
75 |
$ |
30 |
$ |
45 |
$ |
75 |
$ |
30 |
$ |
45 |
||||||||||||
Long-term debt due within one year |
|
1 |
|
|
— |
|
|
1 |
|
|
1 |
|
|
— |
|
|
1 |
|
||||||
Long-term debt, less amount due within one year |
|
1,725 |
|
|
— |
|
|
1,725 |
|
|
1,726 |
|
|
— |
|
|
1,726 |
|
||||||
Total debt |
|
1,801 |
|
|
30 |
|
|
1,771 |
|
|
1,802 |
|
|
30 |
|
|
1,772 |
|
||||||
|
|
|
|
|
|
|
||||||||||||||||||
Less: Cash and cash equivalents |
|
1,638 |
|
|
166 |
|
|
1,472 |
|
|
1,814 |
|
|
177 |
|
|
1,637 |
|
||||||
|
|
|
|
|
|
|
||||||||||||||||||
Net debt (net cash) |
|
163 |
|
|
(136 |
) |
|
299 |
|
|
(12 |
) |
|
(147 |
) |
|
135 |
|
||||||
|
|
|
|
|
|
|
||||||||||||||||||
Plus: Net pension / OPEB liability |
|
893 |
|
|
16 |
|
|
877 |
|
|
973 |
|
|
15 |
|
|
958 |
|
||||||
|
|
|
|
|
|
|
||||||||||||||||||
Adjusted net debt (net cash) |
$ |
1,056 |
|
$ |
(120 |
) |
$ |
1,176 |
|
$ |
961 |
|
$ |
(132 |
) |
$ |
1,093 |
|
Net debt is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management assesses Alcoa Corporation’s leverage position after considering available cash that could be used to repay outstanding debt. When cash exceeds total debt, the measure is expressed as net cash. |
Adjusted net debt and proportional adjusted net debt are also non-GAAP financial measures. Management believes that these additional measures are meaningful to investors because management also assesses Alcoa Corporation’s leverage position after considering available cash that could be used to repay outstanding debt and net pension/OPEB liability, net of the portion of those items attributable to noncontrolling interest (NCI). |
Days Working Capital |
||||||||||||
|
Quarter ended |
|||||||||||
|
June 30, 2022 |
March 31, 2022 |
June 30, 2021 |
|||||||||
Receivables from customers |
$ |
898 |
|
$ |
952 |
|
$ |
644 |
|
|||
|
|
|
|
|||||||||
Add: Inventories |
|
2,556 |
|
|
2,495 |
|
|
1,547 |
|
|||
|
|
|
|
|||||||||
Less: Accounts payable, trade |
|
(1,752 |
) |
|
(1,645 |
) |
|
(1,392 |
) |
|||
|
|
|
|
|||||||||
DWC working capital |
$ |
1,702 |
|
$ |
1,802 |
|
$ |
799 |
|
|||
|
|
|
|
|||||||||
Sales |
$ |
3,644 |
|
$ |
3,293 |
|
$ |
2,833 |
|
|||
|
|
|
|
|||||||||
Number of days in the quarter |
|
91 |
|
|
90 |
|
|
91 |
|
|||
|
|
|
|
|||||||||
Days working capital(1) |
|
43 |
|
|
49 |
|
|
26 |
|
Days working capital is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management uses its working capital position to assess Alcoa Corporation’s efficiency in liquidity management. |
||
(1) |
Days working capital is calculated as DWC working capital divided by the quotient of Sales and number of days in the quarter. |