Alcoa’s production and sales rose in Q2 2020, while its liabilities reduced this quarter.
Roy Harvey, president and chief executive officer, Alcoa said while releasing the Q2 2020 report on Wednesday that the company managed to reduce costs, increase output, maintain stable shipments, and improve its balance sheet despite challenging market conditions.
Bauxite production rose by 8pc in Q2 2020 to 12.2mn mt from 11.3mn mt in the same quarter last year, while total sales during the period stood at $311mn. In H1 2020, production bauxite increased by 2.5pc to 23.8mn mt from 23.2mn mt in the same period in 2019.
Alumina output rose by 1.8pc in Q2 2020 to 3.4mn mt over the same quarter last year while revenue from alumina sales stood at $892mn. In H1 2020 alumina production rose by 1.8pc to 6.7mn mt compared to the same period in 2019.
Primary aluminum output rose 9pc in Q2 2020 to 581,000mt from 533,000mt in the prior-year period while sales for the material accounted for $1.48bn of the company’s revenue. For the first six months of the year, aluminum production saw an uptick of 7pc to 1.14mn mt from 1mn mt in H1 2019.
The company’s sales outlook for the year remains unchanged as follows:
| Bauxite | 48 – 49mn mt |
| Alumina | 13.6 – 13.7mn mt |
| Primary Aluminum | 2.9 – 3mn mt |
Alcoa’s EBITDA in Q2 2020 was $185mn but the company continues to run a net loss of $4mn. However, the company’s financial position has improved from the first quarter where it suffered a loss of $42mn.