Summary
Howmet Aerospace Inc. (HWM), formerly Alcoa Inc., reported its first quarter 2013 financial results, showing a net income attributable to Alcoa common shareholders of $149 million, or $0.13 per diluted share, an increase from $94 million, or $0.09 per diluted share, in the prior year's first quarter. This improvement was driven by productivity gains, favorable foreign currency movements, and higher realized prices for alumina, partially offset by lower aluminum prices and an increased tax provision. Sales decreased by 3% to $5.833 billion, primarily due to lower primary aluminum volumes and unfavorable pricing in the midstream segment. The company continued its restructuring efforts, incurring $7 million in charges related to layoffs and other miscellaneous items. Liquidity remained a focus, with cash used for operations at $70 million, an improvement from $236 million in the prior year, supported by lower pension contributions and changes in working capital. The company also managed its debt, with significant additions and payments during the quarter, and provided updates on ongoing legal and environmental matters, including a settlement in principle for natural resource damage claims in New York and a revised demand from Italian energy regulators.
Financial Highlights
52 data points| Revenue | $5.83B |
| Cost of Revenue | $4.85B |
| Gross Profit | $986.00M |
| R&D Expenses | $45.00M |
| SG&A Expenses | $251.00M |
| Operating Expenses | $5.60B |
| Interest Expense | $115.00M |
| Net Income | $149.00M |
| EPS (Basic) | $0.14 |
| EPS (Diluted) | $0.13 |
| Shares Outstanding (Basic) | 1.07B |
| Shares Outstanding (Diluted) | 1.17B |
Key Highlights
- 1Net income attributable to Alcoa common shareholders increased to $149 million ($0.13/share) from $94 million ($0.09/share) in Q1 2012.
- 2Sales decreased by 3% to $5.833 billion, primarily due to lower primary aluminum volumes and pricing.
- 3Restructuring and other charges totaled $7 million in Q1 2013.
- 4Cash used for operations improved significantly to $70 million from $236 million in Q1 2012.
- 5The company is actively managing its debt structure, with new credit facilities and commercial paper activity.
- 6Significant legal and environmental matters are ongoing, including a proposed settlement for natural resource damages and Italian energy regulator disputes.
- 7The effective tax rate for Q1 2013 was 27.4%, benefiting from a discrete tax adjustment related to new U.S. tax legislation.