In an impressive performance, U.S. aluminum giant Alcoa reported a notable rise in its preliminary second-quarter earnings, even as alumina production faced a downturn. The company's earnings before interest, tax, depreciation, and amortization (EBITDA) were estimated to be between $180 million and $190 million for the second quarter, marking a substantial increase of 35% month-over-month and 33% year-over-year. This remarkable growth can be primarily attributed to elevated aluminum prices.
However, Alcoa's alumina production saw a decline, with the output reaching 2.4 million tons in the second quarter. This represents a 4% decrease from the previous quarter's production of 2.5 million tons and a 6.2% drop from the 2.6 million tons produced during the same period in 2023. The reduction in output has been linked to the curtailment of operations at the Kwinana refinery in Western Australia and the San Ciprian plant in Spain.
In a strategic move announced in February, Alcoa revealed its plan to acquire its Australian joint venture partner, Alumina Limited, in an all-stock transaction valued at $2.2 billion. The acquisition is anticipated to be finalized around August 1st, marking a significant expansion in Alcoa's operational capabilities and market reach.
This development underscores Alcoa's resilience and strategic agility in navigating market fluctuations and operational challenges, positioning the company for sustained growth in the competitive aluminum industry.
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