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AA NYSE· Alcoa Corporation
Earnings report Q4 2023

Alcoa Corporation Reports Decrease in Revenue in Latest Quarter

Segments of revenue

In the latest quarter, Alcoa Corporation reported total sales of $12.20 billion, a decrease from the previous quarter's total sales of $14.19 billion. The breakdown of revenue by segment is as follows:

  • Alumina segment: Third-party sales amounted to $3.61 billion, while intersegment sales were $1.65 billion, resulting in total sales of $5.26 billion.
  • Aluminum segment: Third-party sales reached $6.93 billion, with intersegment sales of $15 million, leading to total sales of $6.94 billion.

Strengths

Despite the decrease in revenue, Alcoa Corporation's management highlighted several strengths in their financial performance. The company's Alumina segment showed resilience with third-party sales of $3.61 billion, indicating a steady demand for alumina products. Additionally, the Aluminum segment generated significant revenue of $6.94 billion, demonstrating the company's strong position in the aluminum market.

Challenges

The decrease in total sales compared to the previous quarter poses a challenge for Alcoa Corporation. The decline in revenue can be attributed to various factors, including market conditions, fluctuations in commodity prices, and potential supply chain disruptions. The company may need to address these challenges to ensure sustainable revenue growth in the future.

Noteworthy

It is worth noting that Alcoa Corporation underwent a change in its operating segments starting from January 2023. The financial information for the bauxite mines and alumina refineries was combined into the Alumina segment, while the Aluminum segment remained unchanged. This change in segment structure may have implications for the company's financial reporting and performance evaluation.

Summary

Alcoa Corporation experienced a decrease in revenue in the latest quarter, reporting total sales of $12.20 billion. The Alumina segment contributed $5.26 billion in sales, while the Aluminum segment generated $6.94 billion. Despite the decline in revenue, the company showcased strengths in both segments, indicating a resilient demand for alumina and a strong position in the aluminum market. However, challenges such as market conditions and supply chain disruptions need to be addressed to ensure sustainable revenue growth. The change in segment structure also adds a noteworthy aspect to Alcoa Corporation's financial reporting.

Source documents

Form 10-K  filed on Feb 21, 2024
30 pages scanned

Reference data

Company financials Q4 revenue 2.60B
Analyst estimates Q4 EPS missed by -6.10%
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