Summary
Howmet Aerospace Inc. (HWM), formerly Alcoa Inc. at the time of this filing, reported net income attributable to Alcoa of $44 million ($0.02 per diluted share) for the third quarter of 2015, a significant decrease from $149 million ($0.12 per diluted share) in the same period of the prior year. This decline was primarily driven by lower average realized prices for aluminum, though partially offset by favorable foreign currency movements, reduced restructuring charges, and productivity improvements. For the nine-month period ended September 30, 2015, net income attributable to Alcoa was $379 million ($0.26 per diluted share), an improvement from $109 million ($0.09 per diluted share) in the same period of 2014. This increase was largely due to favorable foreign currency movements, productivity gains, reduced restructuring costs, and a higher average realized price for alumina, which helped to offset a lower average aluminum price. The company also announced a plan to separate into two independent publicly-traded companies, expected to be completed in the second half of 2016, which is a significant strategic development for investors to monitor.
Financial Highlights
51 data points| Revenue | $3.13B |
| R&D Expenses | $55.00M |
| SG&A Expenses | $261.00M |
| Operating Expenses | $5.37B |
| Interest Expense | $123.00M |
| Net Income | $44.00M |
| EPS (Basic) | $0.06 |
| EPS (Diluted) | $0.06 |
| Shares Outstanding (Basic) | 427.00M |
| Shares Outstanding (Diluted) | 431.00M |
Key Highlights
- 1Net income attributable to Alcoa decreased to $44 million in Q3 2015 from $149 million in Q3 2014, primarily due to lower aluminum prices.
- 2For the nine months ended September 30, 2015, net income attributable to Alcoa increased to $379 million from $109 million in the prior year, driven by favorable currency movements, productivity improvements, and lower restructuring charges.
- 3Total sales for the third quarter of 2015 decreased by 11% year-over-year to $5,573 million, impacted by lower aluminum prices and curtailed production.
- 4The company announced a plan to separate into two independent, publicly-traded companies, targeted for completion in the second half of 2016.
- 5Restructuring and other charges were significantly lower in the nine months ended September 30, 2015 ($460 million) compared to the same period in 2014 ($780 million), reflecting a reduction in plant closures and workforce adjustments.
- 6The company completed significant acquisitions in its Engineered Products and Solutions segment during the period, including TITAL and RTI International Metals, to expand its titanium and specialty metal offerings.
- 7Cash from operations improved significantly to $717 million in the nine-month period of 2015, compared to $216 million in the same period of 2014, driven by working capital improvements.