Alcoa (AA) Q2 Earnings Review

Alcoa Corp (NYSE:AA) traces its roots back to 1886, when Charles Martin Hall invented a method to produce aluminum by electrolysis. His discovery led to the mass production of aluminum at a cheaper cost for the first time in history. In 1888, Hall founded the Pittsburgh Reduction Company to produce raw aluminum and aluminum sheeting. The Pittsburgh Reduction Co. renamed itself to Aluminum Company of America. In 1998, it once again changed its name to Alcoa. Today, it is a leading aluminum producer for industries ranging from automotive and aerospace to construction and packaging.

The Pittsburgh, Pennsylvania-based Company recently announced strong financial results for the second quarter, helped by improved shipments and higher aluminum prices. Alcoa reported earnings of $1.63 per share for the three months ended June 30, compared to a loss of $1.06 per share in the same period last year. On an adjusted basis, the biggest aluminum producer in the U.S. earned $1.49 per share, easily beating the consensus forecast of $1.29 per share.

Revenue came in at $2.83 billion, up from $2.15 billion in the year-ago quarter. Analysts, on average, were expecting Alcoa to post revenue of $2.65 billion. Moreover, the Company ended the quarter with a $1.65 billion cash balance.

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Speaking on the results, CEO Roy Harve said, “Alcoa had an excellent second quarter and first half of the year, the strongest since our launch as an independent company in 2016. This record-setting performance reflects how our strategies are working to deliver results. Across our Company, we have been working relentlessly to ensure that Alcoa is successful through all market cycles, and this steadfast resilience and consistent performance has allowed us to capture the benefits from strong aluminum pricing and improved customer demand. Today, we have a strengthened balance sheet with lower debt and additional cash to continue to pursue our strategic priorities.”

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