-
Net loss of $199 million, or $1.07 per share
-
Excluding special items, adjusted net loss of $43 million, or $0.23
per share
-
$467 million of adjusted earnings before interest, taxes, depreciation
and amortization (EBITDA) excluding special items
-
Revenue of $2.7 billion
-
$168 million cash from operations; $99 million free cash flow
-
$1.0 billion cash balance and $1.8 billion of debt, for net debt of
$0.8 billion, as of March 31, 2019
Alcoa Corporation (NYSE: AA), a global leader in bauxite, alumina, and
aluminum products, today reported first quarter 2019 results.
|
|
|
|
|
|
|
|
|
|
|
|
M, except per share amounts
|
|
1Q181
|
|
4Q181
|
|
1Q19
|
|
|
|
Revenue
|
|
$
|
3,090
|
|
$
|
3,344
|
|
$
|
2,719
|
|
|
|
|
Net income (loss) attributable to Alcoa Corporation
|
|
$
|
195
|
|
$
|
51
|
|
$
|
(199
|
)
|
|
|
|
Earnings (loss) per share attributable to Alcoa Corporation
|
|
$
|
1.04
|
|
$
|
0.27
|
|
$
|
(1.07
|
)
|
|
|
|
Adjusted net income (loss)
|
|
$
|
190
|
|
$
|
133
|
|
$
|
(43
|
)
|
|
|
|
Adjusted earnings (loss) per share
|
|
$
|
1.01
|
|
$
|
0.70
|
|
$
|
(0.23
|
)
|
|
|
|
Adjusted EBITDA excluding special items
|
|
$
|
732
|
|
$
|
770
|
|
$
|
467
|
|
|
|
1
|
|
As of January 1, 2019, the Company changed its accounting
method for valuing certain inventories from last-in, first-out
(LIFO) to average cost. The effects of the change in accounting
principle have been retrospectively applied to all prior periods
presented. See Exhibit 99.2 to the Company’s Form 8-K filed with
the Securities and Exchange Commission (SEC) on April 17, 2019,
which illustrates the effects of the change in accounting
principle to 2018 interim and full year financial information.
|
|
|
|
|
“We improved our operations in the first quarter, even as alumina and
aluminum prices weakened,” said President and Chief Executive Officer
Roy Harvey. “Our Bauxite and Alumina segments increased their production
rates, and we took steps last quarter to restructure our Aluminum
portfolio.”
Harvey added: “We will work to realize the benefits of the strategic
actions we’ve already taken as we remain focused on safety and
operational excellence. We will also continue to review our assets for
their ability to compete across all market cycles, all to strengthen the
long-term position of the Company.”
In first quarter 2019, Alcoa reported net loss of $199 million, or $1.07
per share, compared to net income of $51 million, or $0.27 per share, in
fourth quarter 2018. The 2019 first quarter results include the impact
of $156 million for special items, stemming primarily from a collective
dismissal process at two smelters in Spain.
Excluding the impact of special items, first quarter 2019 adjusted net
loss was $43 million, or $0.23 per share, down from fourth quarter 2018
net income of $133 million, or $0.70 per share.
Alcoa reports adjusted EBITDA excluding special items for the first
quarter of 2019 of $467 million, a 39 percent sequential decrease
primarily due to lower alumina and aluminum prices.
Alcoa reported first quarter 2019 revenue of $2.7 billion, down 19
percent sequentially, also primarily due to lower alumina and aluminum
prices.
Cash from operations in first quarter 2019 was $168 million and free
cash flow was $99 million. Cash used for financing activities was $199
million and cash used for investing activities was $59 million.
Alcoa ended first quarter 2019 with cash on hand of $1.0 billion and
debt of $1.8 billion, for net debt of $0.8 billion. The Company reported
35 days working capital, a 10-day increase year-over-year, primarily due
to lower revenues, timing of trading activities and higher inventory
days on hand.
Update on Spain Collective Dismissal Process
In January 2019, Alcoa reached agreement with the workers’
representatives at the Avilés and La Coruña aluminum plants in Spain as
part of the collective dismissal process announced in October 2018. As
part of the agreement, the two smelters, with combined operating
capacity of 124,000 metric tons per year, were curtailed in February and
are being maintained in restart condition through June 30, 2019, in the
event that third parties have interest in acquiring the facilities. The
casthouses at both plants and the paste plant at La Coruña remain in
operation.
As part of the process, the Company recorded restructuring-related and
other charges of $120 million (pre- and after-tax), or $0.65 per share
in the first quarter of 2019. Of that total, approximately 80 percent is
non-cash, primarily related to fixed asset and inventory write-downs.
Alcoa expects additional charges in the second quarter of 2019,
estimated to range from $70 million to $125 million (pre- and
after-tax), or $0.38 to $0.67 per share, depending on the outcome of the
collective dismissal process. Approximately 75 percent would be cash
outlays in 2019.
2019 Outlook
The Company’s 2019 shipment outlook for Bauxite, Alumina and Aluminum
remains unchanged from the prior full-year estimates. Total annual
bauxite shipments are expected to be between 47.0 and 48.0 million dry
metric tons. Total alumina shipments are projected to be between 13.6
and 13.7 million metric tons with anticipated operational improvements
and higher year-on-year production. Aluminum shipments are expected to
be between 2.8 and 2.9 million metric tons.
In the second quarter of 2019, Alcoa expects favorable improvements from
third-party energy sales in Brazil and lower alumina costs to the
Aluminum segment. In addition, the Company also expects moderate
benefits from declines in raw material prices, primarily in the Alumina
segment.
Market Update
For 2019, Alcoa projects a global aluminum deficit ranging between 1.5
million and 1.9 million metric tons, down from last quarter’s full-year
estimate of between 1.7 million and 2.1 million metric tons.
Global aluminum demand growth for 2019 is estimated to range between 2
to 3 percent, down from 3 to 4 percent in the previous quarter,
predominantly due to lower demand growth in China, especially in the
transportation and electrical sectors.
Alcoa continues to project a balanced market in China and maintains a
deficit estimate for the rest of the world between 1.7 million to 1.9
million metric tons, as lower demand growth is offset by lower
production expectations in Europe and South America.
In the alumina market, Alcoa maintains its projection for a 2019 surplus
in the range of 200 thousand metric tons to 1 million metric tons. The
estimate assumes ongoing, third-party supply disruptions in the Atlantic
region and a Chinese alumina surplus that the Company estimates to be
around 1 million metric tons.
The bauxite market is expected to have a slightly larger surplus in 2019
versus Alcoa’s prior estimate, with stockpile growth ranging between 8
million and 12 million metric tons, as higher production expectations in
Australia, Guinea, and Southeast Asia are only partially offset by
higher demand in China.
Conference Call
Alcoa will hold its quarterly conference call at 5 p.m. Eastern Daylight
Time (EDT) on Wednesday, April 17, 2019, to present first quarter
financial results and discuss the business 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 April 17, 2019. Call
information and related details are available under the “Investors”
section of www.alcoa.com.
Dissemination of Company Information
Alcoa intends to make future announcements regarding company
developments and financial performance through its website, www.alcoa.com.
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina, and
aluminum products, and is built on a foundation of strong values and
operating excellence dating back 130 years to the world-changing
discovery that made aluminum an affordable and vital part of modern
life. Since developing the aluminum industry, and throughout our
history, our talented Alcoans have followed on with breakthrough
innovations and best practices that have led to efficiency, safety,
sustainability, and stronger communities wherever we operate.
Forward-Looking Statements
This press 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
“anticipates,” “believes,” “could,” “estimates,” “expects,” “forecasts,”
“goal,” “intends,” “may,” “outlook,” “plans,” “projects,” “seeks,”
“sees,” “should,” “targets,” “will,” “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 performance; statements about strategies, outlook, and
business and financial prospects; and statements about 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)
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; (b) deterioration in global economic and financial market
conditions generally and which may also affect Alcoa’s Corporation’s
ability to obtain credit or financing upon acceptable terms; (c)
unfavorable changes in the markets served by Alcoa Corporation; (d) the
impact of changes in foreign currency exchange and tax rates on costs
and results; (e) increases in energy costs or uncertainty of energy
supply; (f) declines in the discount rates used to measure pension
liabilities or lower-than-expected investment returns on pension assets,
or unfavorable changes in laws or regulations that govern pension plan
funding; (g) the inability to achieve improvement in profitability and
margins, cost savings, cash generation, revenue growth, fiscal
discipline, or strengthening of competitiveness and operations
anticipated from operational and productivity improvements, cash
sustainability, 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, facility
closures, curtailments, restarts, expansions, or joint ventures; (i)
political, economic, trade, legal, and regulatory risks in the countries
in which Alcoa Corporation operates or sells products; (j) labor
disputes and/or and work stoppages; (k) the outcome of contingencies,
including legal proceedings, government or regulatory investigations,
and environmental remediation; (l) the impact of cyberattacks and
potential information technology or data security breaches; and (m) the
other risk factors discussed in Item 1A of Alcoa Corporation’s Form 10-K
for the fiscal year ended December 31, 2018 and other reports filed by
Alcoa Corporation with the U.S. Securities and Exchange Commission
(SEC). 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
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
2018
|
|
2018
|
|
2019
|
|
Sales
|
|
$
|
3,090
|
|
|
$
|
3,344
|
|
$
|
2,719
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold (exclusive of expenses below)(1)
|
|
|
2,302
|
|
|
|
2,513
|
|
|
2,180
|
|
|
Selling, general administrative, and other expenses
|
|
|
67
|
|
|
|
59
|
|
|
84
|
|
|
Research and development expenses
|
|
|
8
|
|
|
|
7
|
|
|
7
|
|
|
Provision for depreciation, depletion, and amortization
|
|
|
194
|
|
|
|
174
|
|
|
172
|
|
|
Restructuring and other charges, net
|
|
|
(19
|
)
|
|
|
138
|
|
|
113
|
|
|
Interest expense
|
|
|
26
|
|
|
|
31
|
|
|
30
|
|
|
Other expenses, net
|
|
|
21
|
|
|
|
32
|
|
|
41
|
|
|
Total costs and expenses
|
|
|
2,599
|
|
|
|
2,954
|
|
|
2,627
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
491
|
|
|
|
390
|
|
|
92
|
|
|
Provision for income taxes(1)
|
|
|
151
|
|
|
|
163
|
|
|
150
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)(1)
|
|
|
340
|
|
|
|
227
|
|
|
(58
|
)
|
|
|
|
|
|
|
|
|
|
Less: Net income attributable to noncontrolling interest(1)
|
|
|
145
|
|
|
|
176
|
|
|
141
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) ATTRIBUTABLE TO ALCOA CORPORATION(1)
|
|
$
|
195
|
|
|
$
|
51
|
|
$
|
(199
|
)
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA CORPORATION COMMON
SHAREHOLDERS:
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
1.05
|
|
|
$
|
0.27
|
|
$
|
(1.07
|
)
|
|
Average number of shares(2)
|
|
|
185,939,770
|
|
|
|
186,166,234
|
|
|
185,325,040
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
1.04
|
|
|
$
|
0.27
|
|
$
|
(1.07
|
)
|
|
Average number of shares(2)
|
|
|
188,494,931
|
|
|
|
188,219,224
|
|
|
185,325,040
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock outstanding at the end of the period(2)
|
|
|
186,210,129
|
|
|
|
184,770,249
|
|
|
185,519,564
|
|
|
(1)
|
|
As of January 1, 2019, the Company changed its accounting method for
valuing certain inventories from LIFO to average cost. The effects
of the change in accounting principle have been retrospectively
applied to all prior periods presented. See Exhibit 99.2 to the
Company’s Form 8-K filed with the SEC on April 17, 2019, which
illustrates the effects of the change in accounting principle to
2018 interim and full year financial information.
|
|
(2)
|
|
In December 2018, Alcoa Corporation repurchased and retired
1,723,800 shares of outstanding common stock in accordance with its
previously announced common stock repurchase program. Both the basic
and diluted average number of shares for the quarter ended December
31, 2018 includes 1,396,755 representing the weighted average number
of shares for the length of time the 1,723,800 shares were
outstanding during the fourth quarter of 2018.
|
|
|
|
Alcoa Corporation and subsidiaries
|
|
Consolidated Balance Sheet (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
March 31,
|
|
|
|
2018
|
|
2019
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
1,113
|
|
|
$
|
1,017
|
|
|
Receivables from customers
|
|
|
830
|
|
|
|
758
|
|
|
Other receivables
|
|
|
173
|
|
|
|
184
|
|
|
Inventories(1)
|
|
|
1,819
|
|
|
|
1,799
|
|
|
Fair value of derivative instruments
|
|
|
73
|
|
|
|
71
|
|
|
Prepaid expenses and other current assets(1),(2)
|
|
|
320
|
|
|
|
285
|
|
|
Total current assets
|
|
|
4,328
|
|
|
|
4,114
|
|
|
|
|
|
|
|
|
Properties, plants, and equipment
|
|
|
21,807
|
|
|
|
22,015
|
|
|
Less: accumulated depreciation, depletion, and amortization
|
|
|
13,480
|
|
|
|
13,687
|
|
|
Properties, plants, and equipment, net
|
|
|
8,327
|
|
|
|
8,328
|
|
|
Investments
|
|
|
1,360
|
|
|
|
1,362
|
|
|
Deferred income taxes
|
|
|
560
|
|
|
|
604
|
|
|
Fair value of derivative instruments
|
|
|
82
|
|
|
|
68
|
|
|
Other noncurrent assets
|
|
|
1,475
|
|
|
|
1,480
|
|
|
Total assets
|
|
$
|
16,132
|
|
|
$
|
15,956
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable, trade
|
|
$
|
1,663
|
|
|
$
|
1,503
|
|
|
Accrued compensation and retirement costs
|
|
|
400
|
|
|
|
383
|
|
|
Taxes, including income taxes
|
|
|
426
|
|
|
|
395
|
|
|
Fair value of derivative instruments
|
|
|
82
|
|
|
|
84
|
|
|
Other current liabilities
|
|
|
347
|
|
|
|
437
|
|
|
Long-term debt due within one year
|
|
|
1
|
|
|
|
1
|
|
|
Total current liabilities
|
|
|
2,919
|
|
|
|
2,803
|
|
|
Long-term debt, less amount due within one year
|
|
|
1,801
|
|
|
|
1,802
|
|
|
Accrued pension benefits
|
|
|
1,407
|
|
|
|
1,387
|
|
|
Accrued other postretirement benefits
|
|
|
868
|
|
|
|
851
|
|
|
Asset retirement obligations
|
|
|
529
|
|
|
|
543
|
|
|
Environmental remediation
|
|
|
236
|
|
|
|
243
|
|
|
Fair value of derivative instruments
|
|
|
261
|
|
|
|
580
|
|
|
Noncurrent income taxes
|
|
|
301
|
|
|
|
300
|
|
|
Other noncurrent liabilities and deferred credits
|
|
|
222
|
|
|
|
364
|
|
|
Total liabilities
|
|
|
8,544
|
|
|
|
8,873
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Alcoa Corporation shareholders’ equity:
|
|
|
|
|
|
Common stock
|
|
|
2
|
|
|
|
2
|
|
|
Additional capital
|
|
|
9,611
|
|
|
|
9,618
|
|
|
Retained earnings(1)
|
|
|
570
|
|
|
|
371
|
|
|
Accumulated other comprehensive loss
|
|
|
(4,565
|
)
|
|
|
(4,834
|
)
|
|
Total Alcoa Corporation shareholders' equity
|
|
|
5,618
|
|
|
|
5,157
|
|
|
Noncontrolling interest(1)
|
|
|
1,970
|
|
|
|
1,926
|
|
|
Total equity
|
|
|
7,588
|
|
|
|
7,083
|
|
|
Total liabilities and equity
|
|
$
|
16,132
|
|
|
$
|
15,956
|
|
|
(1)
|
|
As of January 1, 2019, the Company changed its accounting method for
valuing certain inventories from LIFO to average cost. The effects
of the change in accounting principle have been retrospectively
applied to the prior period presented. See Exhibit 99.2 to the
Company’s Form 8-K filed with the SEC on April 17, 2019, which
illustrates the effects of the change in accounting principle to
2018 interim and full year financial information.
|
|
(2)
|
|
This line item includes $3 of restricted cash as of both December
31, 2018 and March 31, 2019.
|
|
|
|
|
|
|
|
Alcoa Corporation and subsidiaries
|
|
Statement of Consolidated Cash Flows (unaudited)
|
|
(in millions)
|
|
|
|
|
|
|
|
Three months ended
|
|
|
|
March 31,
|
|
|
|
2018
|
|
2019
|
|
CASH FROM OPERATIONS
|
|
|
|
|
|
Net income (loss)(1)
|
|
$
|
340
|
|
|
$
|
(58
|
)
|
|
Adjustments to reconcile net income (loss) to cash from operations:
|
|
|
|
|
|
Depreciation, depletion, and amortization
|
|
|
194
|
|
|
|
172
|
|
|
Deferred income taxes(1)
|
|
|
2
|
|
|
|
33
|
|
|
Equity earnings, net of dividends
|
|
|
(6
|
)
|
|
|
(3
|
)
|
|
Restructuring and other charges, net
|
|
|
(19
|
)
|
|
|
113
|
|
|
Net gain from investing activities – asset sales
|
|
|
(5
|
)
|
|
|
(8
|
)
|
|
Net periodic pension benefit cost
|
|
|
40
|
|
|
|
30
|
|
|
Stock-based compensation
|
|
|
10
|
|
|
|
10
|
|
|
Provision for bad debt expense
|
|
|
–
|
|
|
|
20
|
|
|
Other
|
|
|
(14
|
)
|
|
|
23
|
|
|
Changes in assets and liabilities, excluding effects of
acquisitions, divestitures, and foreign currency translation
adjustments:
|
|
|
|
|
|
Decrease in receivables
|
|
|
43
|
|
|
|
42
|
|
|
(Increase) Decrease in inventories(1)
|
|
|
(248
|
)
|
|
|
17
|
|
|
Decrease in prepaid expenses and other current assets
|
|
|
2
|
|
|
|
13
|
|
|
(Decrease) in accounts payable, trade
|
|
|
(106
|
)
|
|
|
(159
|
)
|
|
(Decrease) in accrued expenses
|
|
|
(186
|
)
|
|
|
(18
|
)
|
|
Increase (Decrease) in taxes, including income taxes
|
|
|
84
|
|
|
|
(43
|
)
|
|
Pension contributions
|
|
|
(40
|
)
|
|
|
(7
|
)
|
|
(Increase) in noncurrent assets
|
|
|
(13
|
)
|
|
|
(10
|
)
|
|
(Decrease) Increase in noncurrent liabilities
|
|
|
(23
|
)
|
|
|
1
|
|
|
CASH PROVIDED FROM OPERATIONS
|
|
|
55
|
|
|
|
168
|
|
|
|
|
|
|
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
Additions to debt (original maturities greater than three months)
|
|
|
61
|
|
|
|
–
|
|
|
Payments on debt (original maturities greater than three months)
|
|
|
(4
|
)
|
|
|
–
|
|
|
Proceeds from the exercise of employee stock options
|
|
|
15
|
|
|
|
1
|
|
|
Contributions from noncontrolling interest
|
|
|
53
|
|
|
|
20
|
|
|
Distributions to noncontrolling interest
|
|
|
(267
|
)
|
|
|
(214
|
)
|
|
Other
|
|
|
(5
|
)
|
|
|
(6
|
)
|
|
CASH USED FOR FINANCING ACTIVITIES
|
|
|
(147
|
)
|
|
|
(199
|
)
|
|
|
|
|
|
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
Capital expenditures
|
|
|
(74
|
)
|
|
|
(69
|
)
|
|
Proceeds from the sale of assets and businesses
|
|
|
–
|
|
|
|
11
|
|
|
Additions to investments
|
|
|
–
|
|
|
|
(1
|
)
|
|
CASH USED FOR INVESTING ACTIVITIES
|
|
|
(74
|
)
|
|
|
(59
|
)
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH
|
|
|
4
|
|
|
|
(6
|
)
|
|
Net change in cash and cash equivalents and restricted cash
|
|
|
(162
|
)
|
|
|
(96
|
)
|
|
Cash and cash equivalents and restricted cash at beginning of year
|
|
|
1,365
|
|
|
|
1,116
|
|
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD
|
|
$
|
1,203
|
|
|
$
|
1,020
|
|
|
(1)
|
|
As of January 1, 2019, the Company changed its accounting method for
valuing certain inventories from LIFO to average cost. The effects
of the change in accounting principle have been retrospectively
applied to the prior period presented. See Exhibit 99.2 to the
Company’s Form 8-K filed with the SEC on April 17, 2019, which
illustrates the effects of the change in accounting principle to
2018 interim and full year financial information.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alcoa Corporation and subsidiaries
|
|
Segment Information (unaudited)
|
|
(dollars in millions, except realized prices; dry metric tons
in millions (mdmt); metric tons in thousands (kmt))
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Q18
|
|
2Q18
|
|
3Q18
|
|
4Q18
|
|
2018
|
|
1Q19
|
|
Bauxite:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production(1) (mdmt)
|
|
|
11.2
|
|
|
|
11.3
|
|
|
|
11.5
|
|
|
|
11.8
|
|
|
|
45.8
|
|
|
|
11.9
|
|
|
Third-party shipments (mdmt)
|
|
|
1.1
|
|
|
|
1.6
|
|
|
|
1.4
|
|
|
|
1.6
|
|
|
|
5.7
|
|
|
|
1.2
|
|
|
Intersegment shipments (mdmt)
|
|
|
10.4
|
|
|
|
10.0
|
|
|
|
10.1
|
|
|
|
10.7
|
|
|
|
41.2
|
|
|
|
10.2
|
|
|
Third-party sales
|
|
$
|
47
|
|
|
$
|
77
|
|
|
$
|
67
|
|
|
$
|
80
|
|
|
$
|
271
|
|
|
$
|
65
|
|
|
Intersegment sales
|
|
$
|
249
|
|
|
$
|
226
|
|
|
$
|
224
|
|
|
$
|
245
|
|
|
$
|
944
|
|
|
$
|
236
|
|
|
Segment adjusted EBITDA(2)
|
|
$
|
110
|
|
|
$
|
100
|
|
|
$
|
106
|
|
|
$
|
110
|
|
|
$
|
426
|
|
|
$
|
126
|
|
|
Depreciation, depletion, and amortization
|
|
$
|
29
|
|
|
$
|
27
|
|
|
$
|
27
|
|
|
$
|
28
|
|
|
$
|
111
|
|
|
$
|
28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Alumina:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production (kmt)
|
|
|
3,173
|
|
|
|
3,227
|
|
|
|
3,160
|
|
|
|
3,297
|
|
|
|
12,857
|
|
|
|
3,240
|
|
|
Third-party shipments (kmt)
|
|
|
2,376
|
|
|
|
2,285
|
|
|
|
2,233
|
|
|
|
2,365
|
|
|
|
9,259
|
|
|
|
2,329
|
|
|
Intersegment shipments (kmt)
|
|
|
1,097
|
|
|
|
1,031
|
|
|
|
1,083
|
|
|
|
1,115
|
|
|
|
4,326
|
|
|
|
972
|
|
|
Average realized third-party price per metric ton of alumina
|
|
$
|
385
|
|
|
$
|
467
|
|
|
$
|
493
|
|
|
$
|
479
|
|
|
$
|
455
|
|
|
$
|
385
|
|
|
Third-party sales
|
|
$
|
914
|
|
|
$
|
1,068
|
|
|
$
|
1,101
|
|
|
$
|
1,132
|
|
|
$
|
4,215
|
|
|
$
|
897
|
|
|
Intersegment sales
|
|
$
|
454
|
|
|
$
|
536
|
|
|
$
|
544
|
|
|
$
|
567
|
|
|
$
|
2,101
|
|
|
$
|
417
|
|
|
Segment adjusted EBITDA(2)
|
|
$
|
392
|
|
|
$
|
638
|
|
|
$
|
660
|
|
|
$
|
683
|
|
|
$
|
2,373
|
|
|
$
|
372
|
|
|
Depreciation and amortization
|
|
$
|
53
|
|
|
$
|
49
|
|
|
$
|
48
|
|
|
$
|
47
|
|
|
$
|
197
|
|
|
$
|
48
|
|
|
Equity (loss) income
|
|
$
|
(1
|
)
|
|
$
|
14
|
|
|
$
|
10
|
|
|
$
|
9
|
|
|
$
|
32
|
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aluminum:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Primary aluminum production (kmt)
|
|
|
554
|
|
|
|
565
|
|
|
|
567
|
|
|
|
573
|
|
|
|
2,259
|
|
|
|
537
|
|
|
Third-party aluminum shipments(3) (kmt)
|
|
|
794
|
|
|
|
853
|
|
|
|
806
|
|
|
|
815
|
|
|
|
3,268
|
|
|
|
709
|
|
|
Average realized third-party price per metric ton of primary aluminum
|
|
$
|
2,483
|
|
|
$
|
2,623
|
|
|
$
|
2,465
|
|
|
$
|
2,358
|
|
|
$
|
2,484
|
|
|
$
|
2,219
|
|
|
Third-party sales
|
|
$
|
2,111
|
|
|
$
|
2,413
|
|
|
$
|
2,198
|
|
|
$
|
2,107
|
|
|
$
|
8,829
|
|
|
$
|
1,735
|
|
|
Intersegment sales
|
|
$
|
4
|
|
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
4
|
|
|
$
|
18
|
|
|
$
|
3
|
|
|
Segment adjusted EBITDA(2),(4)
|
|
$
|
187
|
|
|
$
|
230
|
|
|
$
|
84
|
|
|
$
|
(50
|
)
|
|
$
|
451
|
|
|
$
|
(96
|
)
|
|
Depreciation and amortization
|
|
$
|
106
|
|
|
$
|
108
|
|
|
$
|
91
|
|
|
$
|
89
|
|
|
$
|
394
|
|
|
$
|
89
|
|
|
Equity loss
|
|
$
|
-–
|
|
|
$
|
(8
|
)
|
|
$
|
(5
|
)
|
|
$
|
(25
|
)
|
|
$
|
(38
|
)
|
|
$
|
(22
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of total segment Adjusted EBITDA to consolidated
net income (loss) attributable to Alcoa Corporation:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total segment Adjusted EBITDA(2),(4)
|
|
$
|
689
|
|
|
$
|
968
|
|
|
$
|
850
|
|
|
$
|
743
|
|
|
$
|
3,250
|
|
|
$
|
402
|
|
|
Unallocated amounts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transformation(5)
|
|
|
(2
|
)
|
|
|
(1
|
)
|
|
|
1
|
|
|
|
(1
|
)
|
|
|
(3
|
)
|
|
|
2
|
|
|
Intersegment eliminations(4),(6)
|
|
|
76
|
|
|
|
(152
|
)
|
|
|
21
|
|
|
|
47
|
|
|
|
(8
|
)
|
|
|
86
|
|
|
Corporate expenses(7)
|
|
|
(27
|
)
|
|
|
(26
|
)
|
|
|
(22
|
)
|
|
|
(21
|
)
|
|
|
(96
|
)
|
|
|
(24
|
)
|
|
Provision for depreciation, depletion, and amortization
|
|
|
(194
|
)
|
|
|
(192
|
)
|
|
|
(173
|
)
|
|
|
(174
|
)
|
|
|
(733
|
)
|
|
|
(172
|
)
|
|
Restructuring and other charges, net
|
|
|
19
|
|
|
|
(231
|
)
|
|
|
(177
|
)
|
|
|
(138
|
)
|
|
|
(527
|
)
|
|
|
(113
|
)
|
|
Interest expense
|
|
|
(26
|
)
|
|
|
(32
|
)
|
|
|
(33
|
)
|
|
|
(31
|
)
|
|
|
(122
|
)
|
|
|
(30
|
)
|
|
Other expenses, net
|
|
|
(21
|
)
|
|
|
(9
|
)
|
|
|
(2
|
)
|
|
|
(32
|
)
|
|
|
(64
|
)
|
|
|
(41
|
)
|
|
Other(8)
|
|
|
(23
|
)
|
|
|
(36
|
)
|
|
|
(10
|
)
|
|
|
(3
|
)
|
|
|
(72
|
)
|
|
|
(18
|
)
|
|
Consolidated income before income taxes(4)
|
|
|
491
|
|
|
|
289
|
|
|
|
455
|
|
|
|
390
|
|
|
|
1,625
|
|
|
|
92
|
|
|
Provision for income taxes(4)
|
|
|
(151
|
)
|
|
|
(158
|
)
|
|
|
(260
|
)
|
|
|
(163
|
)
|
|
|
(732
|
)
|
|
|
(150
|
)
|
|
Net income attributable to noncontrolling interest(4)
|
|
|
(145
|
)
|
|
|
(121
|
)
|
|
|
(201
|
)
|
|
|
(176
|
)
|
|
|
(643
|
)
|
|
|
(141
|
)
|
|
Consolidated net income (loss) attributable to Alcoa Corporation(4)
|
|
$
|
195
|
|
|
$
|
10
|
|
|
$
|
(6
|
)
|
|
$
|
51
|
|
|
$
|
250
|
|
|
$
|
(199
|
)
|
|
The difference between segment totals and consolidated amounts is
in Corporate.
|
|
|
|
|
|
(1)
|
|
The production amounts do not include additional bauxite
(approximately 3 mdmt per annum) that Alcoa World Alumina and
Chemicals is entitled to receive (i.e. an amount in excess of its
equity ownership interest) from certain other partners at the mine
in Guinea.
|
|
|
|
|
|
(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)
|
|
The Aluminum segment’s third-party aluminum shipments are composed
of both primary aluminum and flat-rolled aluminum.
|
|
|
|
|
|
(4)
|
|
As of January 1, 2019, the Company changed its accounting method for
valuing certain inventories from LIFO to average cost. The effects
of the change in accounting principle have been retrospectively
applied to all prior periods presented. See Exhibit 99.2 to the
Company’s Form 8-K filed with the SEC on April 17, 2019, which
illustrates the effects of the change in accounting principle to
2018 interim and full year financial information.
|
|
|
|
|
|
(5)
|
|
Transformation includes, among other items, the Adjusted EBITDA of
previously closed operations.
|
|
|
|
|
|
(6)
|
|
Concurrent with the change in inventory accounting method as of
January 1, 2019, management elected to change the presentation of
certain line items in the reconciliation of total segment Adjusted
EBITDA to Consolidated net income (loss) attributable to Alcoa
Corporation. Corporate inventory accounting previously included the
impact of LIFO, metal price lag and intersegment eliminations. The
impact of LIFO has been eliminated with the change in inventory
method. Metal price lag attributable to the Company’s rolled
operations business is now netted within the Aluminum segment to
simplify presentation of an impact that nets to zero in
consolidation. Only Intersegment eliminations remain as a
reconciling line item and are labeled as such.
|
|
|
|
|
|
(7)
|
|
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.
|
|
|
|
|
|
(8)
|
|
Other includes certain items that impact Cost of goods sold and
Selling, general administrative, and other expenses on Alcoa
Corporation’s Statement of Consolidated Operations that are not
included in the Adjusted EBITDA of the reportable segments,
including those described as “Other special items” (see footnote 3
to the reconciliation of Adjusted Income within Calculation of
Financial Measures included in this release).
|
|
|
|
|
|
|
|
Alcoa Corporation and subsidiaries
|
|
Calculation of Financial Measures (unaudited)
|
|
(in millions, except per-share amounts)
|
|
|
|
Adjusted Income
|
|
|
|
|
|
|
|
|
|
Income (Loss)
|
|
Diluted EPS(5)
|
|
|
|
Quarter ended
|
|
Quarter ended
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
2018
|
|
2018
|
|
2019
|
|
2018
|
|
2018
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Alcoa Corporation(1)
|
|
$
|
195
|
|
|
$
|
51
|
|
|
$
|
(199
|
)
|
|
$
|
1.04
|
(1)
|
|
$
|
0.27
|
(1)
|
|
$
|
(1.07
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Special items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other charges, net
|
|
|
(19
|
)
|
|
|
138
|
|
|
|
113
|
|
|
|
|
|
|
|
|
Discrete tax items(2)
|
|
|
(2
|
)
|
|
|
(24
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
Other special items(3)
|
|
|
18
|
|
|
|
29
|
|
|
|
44
|
|
|
|
|
|
|
|
|
Tax impact(4)
|
|
|
(2
|
)
|
|
|
(43
|
)
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
Noncontrolling interest impact(4)
|
|
|
-
|
|
|
|
(18
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
Subtotal
|
|
|
(5
|
)
|
|
|
82
|
|
|
|
156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Alcoa Corporation – as adjusted
|
|
$
|
190
|
|
|
$
|
133
|
|
|
$
|
(43
|
)
|
|
|
1.01
|
|
|
|
0.70
|
|
|
|
(0.23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) 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, discrete 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 (loss) attributable to Alcoa Corporation determined under GAAP as
well as Net income (loss) attributable to Alcoa Corporation – as
adjusted.
|
(1)
|
|
As of January 1, 2019, the Company changed its accounting method for
valuing certain inventories from LIFO to average cost. The effects
of the change in accounting principle have been retrospectively
applied to all prior periods presented. See Exhibit 99.2 to the
Company’s Form 8-K filed with the SEC on April 17, 2019, which
illustrates the effects of the change in accounting principle to
2018 interim and full year financial information.
|
|
|
|
|
|
(2)
|
|
Discrete tax items include a net benefit for several items for the
quarters ended March 31, 2018 and December 31, 2018.
|
|
|
|
|
|
(3)
|
|
Other special items include the following:
|
|
|
•
|
for the quarter ended March 31, 2018, a net favorable change in
certain mark-to-market energy derivative instruments ($17), costs
related to the partial restart of the Warrick, Indiana smelter
($16), an unfavorable tax impact resulting from the difference
between Alcoa Corporation’s consolidated estimated annual effective
tax rate and the statutory rates applicable to special items ($15),
costs related to a work stoppage at the Bécancour, Canada smelter
($3, primarily contractor services), and an unfavorable tax impact
related to the interim period treatment of operational losses in
certain jurisdictions for which no tax benefit was recognized ($1);
|
|
|
•
|
for the quarter ended December 31, 2018, an unfavorable tax impact
resulting from the difference between Alcoa’s consolidated estimated
annual effective tax rate and the statutory rates applicable to
special items ($32), a favorable tax impact related to the interim
period treatment of operational losses in certain jurisdictions for
which no tax benefit was recognized ($5), a net favorable change in
certain mark-to-market energy derivative instruments ($3), and costs
related to each of the following: a work stoppage at the Bécancour,
Canada smelter ($3, primarily contractor services), a collective
employee dismissal process in Spain at the Avilés and La Coruña
smelters ($1, primarily contractor services), and the partial
restart of the Warrick, Indiana smelter ($1); and
|
|
|
•
|
for the quarter ended March 31, 2019, an unfavorable tax impact
related to the interim period treatment of operational losses in
certain jurisdictions for which no tax benefit was recognized ($83),
a favorable tax impact resulting from the difference between Alcoa’s
consolidated estimated annual effective tax rate and the statutory
rates applicable to special items ($49), costs related to a
collective employee dismissal process in Spain at the Avilés and La
Coruña smelters ($17, primarily inventory write downs), a gain on
the sale of excess land ($9), and costs related to a work stoppage
at the Bécancour, Canada smelter ($2, primarily contractor services).
|
|
|
|
|
|
(4)
|
|
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.
|
|
|
|
|
|
(5)
|
|
In any given period, the average number of shares applicable to
diluted EPS for Net income (loss) attributable to Alcoa Corporation
common shareholders may exclude certain share equivalents as their
effect is anti-dilutive. However, certain of these share equivalents
may become dilutive in the EPS calculation applicable to Net income
(loss) attributable to Alcoa Corporation common shareholders – as
adjusted due to a larger and/or positive numerator. Specifically:
|
|
|
•
|
for the quarter ended March 31, 2018, no additional share
equivalents were dilutive based on Net income attributable to
Alcoa Corporation common shareholders – as adjusted, resulting in
a diluted average number of shares of 188,494,931;
|
|
|
•
|
for the quarter ended December 31, 2018, no additional share
equivalents were dilutive based on Net income attributable to
Alcoa Corporation common shareholders – as adjusted, resulting in
a diluted average number of shares of 188,219,224; and
|
|
|
•
|
for the quarter ended March 31, 2019, no additional share
equivalents were dilutive based on Net loss attributable to Alcoa
Corporation common shareholders – as adjusted, resulting in a
diluted average number of shares of 185,325,040.
|
|
|
|
|
|
Alcoa Corporation and subsidiaries
|
|
Calculation of Financial Measures (unaudited), continued
|
|
(in millions)
|
|
|
|
|
|
Adjusted EBITDA
|
|
Quarter ended
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
2018
|
|
2018
|
|
2019
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Alcoa Corporation(1)
|
|
$
|
195
|
|
|
$
|
51
|
|
$
|
(199
|
)
|
|
|
|
|
|
|
|
|
|
Add:
|
|
|
|
|
|
|
|
Net income attributable to noncontrolling interest(1)
|
|
|
145
|
|
|
|
176
|
|
|
141
|
|
|
Provision for income taxes(1)
|
|
|
151
|
|
|
|
163
|
|
|
150
|
|
|
Other expenses, net
|
|
|
21
|
|
|
|
32
|
|
|
41
|
|
|
Interest expense
|
|
|
26
|
|
|
|
31
|
|
|
30
|
|
|
Restructuring and other charges, net
|
|
|
(19
|
)
|
|
|
138
|
|
|
113
|
|
|
Provision for depreciation, depletion, and amortization
|
|
|
194
|
|
|
|
174
|
|
|
172
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
|
|
713
|
|
|
|
765
|
|
|
448
|
|
|
|
|
|
|
|
|
|
|
Special items(2)
|
|
|
19
|
|
|
|
5
|
|
|
19
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA, excluding special items
|
|
$
|
732
|
|
|
$
|
770
|
|
$
|
467
|
|
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)
|
|
As of January 1, 2019, the Company changed its accounting method
for valuing certain inventories from LIFO to average cost. The
effects of the change in accounting principle have been
retrospectively applied to all prior periods presented. See
Exhibit 99.2 to the Company’s Form 8-K filed with the SEC on April
17, 2019, which illustrates the effects of the change in
accounting principle to 2018 interim and full year financial
information.
|
|
|
|
|
|
(2)
|
|
Special items include the following (see reconciliation of Adjusted
Income above for additional information):
|
|
|
•
|
for the quarter ended March 31, 2018, costs related to the partial
restart of the Warrick, Indiana smelter ($16) and costs related to
a work stoppage at the Bécancour, Canada smelter ($3, primarily
contractor services).
|
|
|
•
|
for the quarter ended December 31, 2018, costs related to each of
the following: a work stoppage at the Bécancour, Canada smelter
($3, primarily contractor services), a collective employee
dismissal process in Spain at the Avilés and La Coruña smelters
($1, primarily contractor services), and the partial restart of
the Warrick, Indiana smelter ($1); and
|
|
|
•
|
for the quarter ended March 31, 2019, costs related to a
collective employee dismissal process in Spain at the Avilés and
La Coruña smelters ($17, primarily inventory write downs), and
costs related to a work stoppage at the Bécancour, Canada smelter
($2, primarily contractor services).
|
|
|
|
|
|
Alcoa Corporation and subsidiaries
|
|
Calculation of Financial Measures (unaudited), continued
|
|
(in millions)
|
|
|
|
|
|
Free Cash Flow
|
|
Quarter ended
|
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
|
|
|
2018
|
|
2018
|
|
2019
|
|
|
|
|
|
|
|
|
|
Cash from operations
|
|
$
|
55
|
|
|
$
|
535
|
|
|
$
|
168
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(74
|
)
|
|
|
(148
|
)
|
|
|
(69
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
$
|
(19
|
)
|
|
$
|
387
|
|
|
$
|
99
|
|
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.
|
Net Debt
|
|
December 31,
|
|
March 31,
|
|
|
|
2018
|
|
2019
|
|
|
|
|
|
|
|
Short-term borrowings
|
|
$
|
–
|
|
$
|
–
|
|
Long-term debt due within one year
|
|
|
1
|
|
|
1
|
|
Long-term debt, less amount due within one year
|
|
|
1,801
|
|
|
1,802
|
|
Total debt
|
|
$
|
1,802
|
|
$
|
1,803
|
|
|
|
|
|
|
|
Less: Cash and cash equivalents
|
|
|
1,113
|
|
|
1,017
|
|
|
|
|
|
|
|
Net debt
|
|
$
|
689
|
|
$
|
786
|
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190417005855/en/
Copyright Business Wire 2019