Aluminum producer Alcoa posts quarterly loss on pension charge
An Alcoa aluminum plant in Alcoa, Tennessee, U.S. is seen in this April 8, 2014 file photo REUTERS/Wade Payne/File Photo
REUTERS: Top U.S. aluminum producer Alcoa Corp reported a better-than-expected quarterly profit on Wednesday, as a series of supply hits boosted alumina prices.Shares of Alcoa rose 3 percent to US$37.79 in after-hours trading, also helped by the announcement of a US$200 million share repurchase program.
Alumina prices spiked during the year, largely due to supply disruptions such as lower production at Norsk Hydro's Alunorte, the world's largest alumina refinery, a strike at Alcoa's Australian operations and U.S. sanctions on Russian aluminum giant Rusal .Alcoa also tightened its 2018 adjusted earnings before interest, tax, depreciation and amortization (EBITDA) forecast to range between US$3.1 billion and US$3.2 billion, compared with its previous forecast of US$3.0 billion and US$3.2 billion.Net loss attributable to Alcoa was US$41 million, or 22 cents per share, in the third quarter ended Sept. 30, compared with a profit of US$113 million, or 60 cents per share, a year earlier.The results include a charge of US$160 million mainly due to a non-cash charge from the transfer of certain of its U.S. pension and retirement benefits.
Revenue rose 14.4 percent to US$3.39 billion.On an adjusted basis, the company earned 63 cents per share.Analysts on average expected a profit of 36 cents per share and revenue of US$3.31 billion, according to I/B/E/S data from Refinitiv.(Reporting by Sanjana Shivdas in Bengaluru; Editing by Sriraj Kalluvila)
Source : https://www.channelnewsasia.com/news/business/aluminum-producer-alcoa-posts-quarterly-loss-on-pension-charge-10838578