Alcoa’s Q2 marked by $197 milion net loss

Pittsburgh-based Alcoa Corp. swung to a loss in the second quarter on lower revenue as the aluminum giant was hit with special charges, including the curtailment of the Intalco smelter in the state of Washington.

The company reported a net loss of $197 million, or $1.06 per share, compared to a profit of $80 million, or 43 cents, when results were propped up by a gain on the sale of a waste treatment facility in Arkansas. In the second quarter of 2019, Alcoa posted a net loss of $402 million, or $2.17 per share.

The results, which were released Wednesday after the close of the stock market, were in line with preliminary results released last week.

Excluding special items, the company lost $4 million, or 2 cents per share, vs. an adjusted loss of $42 million, or 23 cents, in the first quarter and a loss of $2 million, or 1 cent, in the second quarter last year.

Revenue for the most recent quarter slipped to $2.15 billion from

$2.38 billion in the first quarter, and down 20% from $2.71 billion a year ago.

“I am proud of our global team’s resolve in facing challenges created by the pandemic, focusing first on protecting people,” CEO Roy Harvey said in a statement. “We acted early to implement comprehensive measures to mitigate health risks, and we continue to exercise all precautionary measures to keep people safe and our locations fully operational.”

“Despite challenging market conditions, our team has lowered production costs, increased output, maintained stable shipments and improved our balance sheet,” Mr. Harvey said.

Approximately 2% of Alcoa’s global workforce (including employees and contractors) has been affected by the novel coronavirus. Most have recovered and have returned to work, the company said.

Alcoa has been cutting costs and boosting its cash position to counter lower aluminum prices and hits to demand during the pandemic.