Alcoa’s Q2 2020 earnings could be affected by low alumina and aluminum prices, which in turn forced the company to sell its products for less than it did in Q1.
The company expects its Q2 2020 revenue to stand at around $2.17bn with a net loss in the range of $190-205mn. However, it expects mining output to rise by 5pc and refining production to increase by 2pc in Q2 2020 from the previous quarter, the company noted in its guidance, without disclosing the actual volumes produced during Q2 2020.
Alcoa’s Q2 2020 adjusted EBITDA is also expected to trend lower at $155-170mn compared with the previous quarter’s adjusted EBITDA of $289mn, primarily due to lower prices for alumina and aluminum.
Ron Harvey, chief executive officer, Alcoa, said in a statement the company would continue increasing its overall liquidity and continue with its ongoing portfolio review to divest from non-core businesses, as well as loss-making enterprises.
Earlier this year, the company announced plans to shut down its Ferndale, Washington, smelter. In June, Alcoa also started negotiations with the workers union at its Spanish smelter to initiate layoffs before it is shut down.