Alcoa Corp AA shares are trading lower in Wednesday’s after-hours session after the company reported quarterly results and issued weak guidance.
Q4 Results: Alcoa reported fourth-quarter revenue of $2.7 billion, which beat average analyst estimates of $2.65 billion, according to Benzinga Pro. The company said fourth-quarter revenues declined 7% sequentially.
Alcoa reported a quarterly net loss of 70 cents per share, which beat average analyst estimates for a loss of 75 cents per share.
Alcoa said it faced challenging market conditions throughout the year that included high costs for raw materials and energy and lower sequential pricing in the Alumina and Aluminum segments in the fourth quarter.
“Last year, global turbulence negatively influenced costs for energy and raw materials, and we saw significant variance on product pricing between the first and second halves of 2022,” said Roy Harvey, president and CEO of Alcoa.
“We will address current challenges while maintaining our future focus, as the long-term outlook for our industry remains strong.”
Outlook: Alcoa expects total alumina shipments to range between 12.7 and 12.9 million metric tons in 2023, representing a decrease of 0.5 million metric tons from 2022. The Aluminum segment is expected to ship between 2.5 and 2.6 million metric tons, consistent with 2022.
In early January, Alcoa’s Kwinana and Pinjarra refineries converted to diesel as an immediate and temporary fuel source for some operational needs. As a result, the company reduced production at one of its facilities by 30%.
“In regard to outlook beyond the first quarter 2023, the annual mine plan approvals process in Western Australia is currently taking longer than it has traditionally,” the company said.
“Considering the delays, the Company is reducing the bauxite grade at the Huntly mine beginning in April 2023.”
AA Price Action: Alcoa shares are down 4.17% after hours at $51.19 at the time of writing, according to Benzinga Pro.
Photo: courtesy of Alcoa.
Image and article originally from www.benzinga.com. Read the original article here.