Alcoa Corp

Alcoa Corporation delivered a mixed result in the recent quarter, with revenues above market expectations but failed to surpass the analyst consensus regarding earnings. The company experienced a 3% decline in revenue, totaling $2.6 billion, marked by higher shipments partially mitigating the impact of reduced prices for alumina and aluminum. Adjusted EBITDA saw a $67 million decrease to $70 million, with diminished revenue offset by reduced costs. Unfavorable costs outside the segments amounted to $56 million, reflecting adverse intersegment elimination, increased transformation demolition costs, and elevated corporate expenses. Working capital performance showed a positive trend, improving by 5 days to 50 days in the third quarter. This enhancement, driven by reduced inventories, offset previous year-to-date working capital cash outflows entirely. Looking ahead to the fourth quarter of 2023, Alcoa’s team anticipates improvement in other corporate expenses by $10 million, totaling $120 million for the full year. At the segment level, expectations include a $50 million improvement in alumina, offset by $10 million in higher energy costs. In the Aluminum segment, $30 million in unfavorable energy impacts is expected, coupled with $35 million in raw material price improvements being offset by adverse product mix and higher production costs.